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New Study Projects XR Revenue to Reach $70.1 Billion by 2027
ARtillery Intelligence publishes its five-year outlook for XR revenues.
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LOS ANGELES, January 10, 2024: ARtillery Intelligence has released a new report that projects XR revenue to grow from $22.7 billion in 2022 to $70.1 billion in 2027, a 25.2 percent compound annual growth rate. Entitled XR Global Revenue Forecast, 2022-2027, the report examines XR revenue totals and subsegments – including mobile AR, headworn AR, and VR.
Enterprise spending holds a leading share of XR revenues with a projected $20.4 billion in 2023. This is driven by enterprise AR hardware and software that boosts productivity through line-of-sight guidance. Consumer XR follows behind at $7.1 billion projected for 2023, driven by gaming-dominant VR hardware and software spending.
Other spending categories tracked in this report include supporting technology for XR experience creation, including developer platforms and other enablement tools. A subset of enterprise spending (considering both B2B and B2B2C deployments), this category collectively drove an estimated $2.6 billion in spending in 2022, growing to a projected $9.6 billion by 2027.
“XR supporting tech will be an important segment, said Mike Boland, Chief Analyst of ARtillery Intelligence. “This represents the picks and shovels that will accelerate XR adoption by elevating its functionality, optimization, and end-user delivery. History tells us that such enabling tech gains value as emerging sectors approach adolescence.”
As for segments with the most long-term potential, consumer AR could accelerate as it evolves from handheld to headworn. That will take years due to technological and cultural hurdles, but could be stimulated by Apple Vision Pro. Another accelerant will be low-immersion smart glasses, such as Meta Ray Ban Smart Glasses, built around AI-fueled information delivery as opposed to optics and graphical intensity. This is a meaningful development for AR and its continued convergence with AI.
“Smart glasses are getting smarter, which represents a key evolutionary step toward all-day AR glasses that deliver both stylistic viability and graphical richness. That combination isn’t possible today so the former will come first while we evolve towards the latter. Meanwhile, the inverse path is seen in VR devices like Quest 3 that offer passthrough AR. Both approaches have strategic merit and will someday meet in the middle.”
Report Availability
XR Global Revenue Forecast, 2022-2027 is available to ARtillery PRO subscribers, and more can be previewed here. This report follows ARtillery Intelligence’s separate examination of mobile AR, headworn AR, and VR revenue.
About ARtillery Intelligence
ARtillery Intelligence chronicles the evolution of spatial computing. Through writings and multimedia, it provides deep and analytical views into the industry’s biggest players, opportunities, and strategies. Products include the AR Insider publication and the ARtillery PRO research subscription, which together engender a circular flow of knowledge. Research includes monthly narrative reports, market-sizing forecasts, original consumer survey data, and multimedia – all housed in a robust intelligence vault. Learn more here.
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