Spatial Computing Market by Technology Type (AR Technology, VR Technology, MR Technology), Component (Hardware, Software, Services), Vertical (Media & Entertainment, Manufacturing, Retail & eCommerce) and Region - Global Forecast to 2028
The global Spatial Computing Market size reached US$ 97.9 Billion in 2023. Looking forward, It expects the market to reach US$ 280.5 Billion by 2028, exhibiting a growth rate (CAGR) of 23.4% during 2023-2028. The use of spatial computing in the healthcare sector opens new opportunities for medical practitioners and holds a promising future, especially for modern healthcare organizations. It enables doctors and patients to connect virtually for sessions without geographical limitations and assists virtual wellness, fitness, mental health, and doctor-patient interaction. Moreover, spatial computing can be experienced using advanced HMDs or legacy hardware, such as mobile phones, tablets, and computers. Local companies’ launch of VR devices, such as basic VR devices or cardboard-based DIY (do-it-yourself) VR devices, has helped user equipment affordability parameters. These are critical driving forces for the Spatial computing market.The impact of the recession (before and after the recession) on the market is covered throughout the report.
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Recession Impact on the global Spatial Computing Market
A recession can significantly impact the Spatial Computing market, which encompasses technologies like augmented reality (AR), virtual reality (VR), and mixed reality (MR). During economic downturns, consumers reduce discretionary spending, affecting demand for Spatial Computing devices such as VR headsets and AR glasses. Businesses may delay investments in these technologies as they prioritize cost-cutting over innovation. Startups in the field may struggle to secure funding as investors become more risk-averse. However, Spatial Computing technologies can find resilience in some sectors, like gaming and entertainment, as people seek entertainment options during recessions. On the positive side, these technologies can facilitate remote work and collaboration, which may increase demand in a remote-work-focused economy. Government stimulus and investments in technology development can also help mitigate the recession’s impact. In the end, the extent of the impact varies by region, industry, and the severity of the economic downturn.
Spatial Computing Market Dynamics
Drivers: Advancements in real-time rendering engines
The spatial computing market thrives on advancements in real-time rendering technology. These innovations empower AR/VR applications to create lifelike environments, dynamic lighting, and intricate textures in real-time, elevating user immersion and presence. As real-time rendering progresses, it becomes a pivotal driver, pushing the boundaries of what is possible in AR/VR. This results in more captivating, visually striking, and emotionally engaging experiences across industries, ranging from gaming and education to simulation training, ultimately fueling the global market’s growth.
Restraints: Diversity of AR/VR platforms and complex development landscape
The diversity of AR/VR platforms, including standalone headsets, PC-based systems, and mobile devices, each with its unique hardware capabilities and operating systems, creates a complex development landscape. Ensuring that AR/VR software is used across spatial computing implementation/practice functions seamlessly across this wide array of devices demands substantial effort in optimization, compatibility testing, and customization. Developers must navigate the technical intricacies and the varying user interfaces and interaction methods inherent to different platforms. Consequently, the challenge lies in striking a delicate balance between delivering a consistent, high-quality experience and capitalizing on each platform’s strengths while managing the ever-evolving AR/VR ecosystem.
Opportunities: Incorporation of spatial computing and adjacent technologies in the aerospace & defense sector
Technologies such as XR, AI, digital twins, and analytics in the aerospace and defense sector are expected to be be of maasive significance for training and simulating applications. Digital twins are already accelerating progress for aerospace, defense, and government applications. The technology is gradually becoming more important in the development cycle as electronics usage surge in complexity and expand to multi-die systems. A crucial technology in Spatial computing, digital twin, is a virtual representation of a physical system and replicates/reflects/duplicates functionalities of the actual hardware and software. In the aerospace industry, digital twins provide a virtual representation of systems such as an aircraft, a satellite, a semiconductor subsystem that is contained within a larger system. The technology can augment or replace the physical systems which were critically required for prototyping in the past. Further, combined technologies can be used to inspect airplanes, analyze the data, and find malfunctions before take-off, ensuring increased safety. In integration with XR, the metaverse can also help in weapon training, flight training, and simulations, thereby boosting the market growth.
Challenges: Strict maintenance and challenge in preservation of consumer privacy
Spatial computing is supported by adjacent technologies, primarily cloud computing, blockchain, AI/ML, and XR. Privacy is a significant challenge in the extended reality market because XR technologies, such as VR and AR, collect a vast amount of personal data about their users. This data includes sensitive information like user movements, biometric data, and even personal preferences. One of the primary concerns in the XR market is that users’ data can be collected without their knowledge or consent. This can happen with XR devices, which may track and record a user’s location, movements, and actions. These devices can also capture audio and visual information, which can be used for various purposes. Another challenge is the potential for XR technology to be used for malicious purposes, such as cyberstalking or identity theft. The personal data collected through XR devices can be exploited to gain access to sensitive information, steal identities, or track individuals’ movements.
Spatial Computing Market Ecosystem
Based on the services, the professional services will hold the largest market share in the Spatial computing market during the forecast period.
Services play a significant role in processes, such as solutions deployment, onboarding, training, software handling, and maintenance. Professional services include designing, planning, upgradation, and a host of consulting services offered to clients. Companies are offering these services to engage consultants, solutions experts, and dedicated project management teams to specialize in designing and delivering critical decision-support solutions and services. The professional service team ensures smooth project management and precise on-site installation for spatial computing hardware and software. The growth of the professional services segment is governed by the complexity of understanding new business models and process efficiencies in the face of new imperatives, such as increasing demand, new technological interventions, and changing regulatory policies.
Based on technology type, the MR technology segment to hold a higher CAGR in the Spatial computing market during the forecast period
MR is being implemented in numerous innovative ways in the spatial computing market. Industries such as healthcare use MR for medical visualization, enabling doctors to see 3D models of patient anatomy during surgeries. In design and engineering, MR enhances the creation and testing of prototypes. Remote collaboration is improved as MR devices enable individuals to interact as if they were in the exact location, transforming the way teams work together. MR also has applications in training and education, offering hands-on and immersive learning experiences.
North America to hold the largest market share in the Spatial computing market in 2023.
Spatial computing adoption in North America has gained considerable momentum, positioning the region as a leader in the field. The United States, in particular, has seen widespread adoption of augmented and virtual reality technologies driven by a vibrant ecosystem of tech giants, startups, and research institutions. These technologies find applications in diverse sectors, including entertainment, healthcare, education, and enterprise solutions. Major players like Microsoft, Meta, and Magic Leap have introduced spatial computing devices, such as HoloLens and Oculus, which have been instrumental in popularizing the technology. Additionally, North America’s investment in 5G infrastructure and cloud computing capabilities has further facilitated the growth of spatial computing, enabling real-time, high-quality immersive experiences. With active support from both the public and private sectors, North America continues to be a hub for spatial computing innovation and serves as a global benchmark for its adoption and advancement.
Key market players
The spatial computing market is dominated both by established companies as well as startups such as Meta (US), Microsoft (US), Apple (US), Sony (Japan), Qualcomm (US), Google (US), Epson (Japan), Samsung (South Korea), Magic Leap (US), and PTC (US). These vendors have a large customer base, a strong geographic footprint, and organized distribution channels. They incorporate organic and inorganic growth strategies, including product launches, deals, and business expansions, boosting revenue generation.
The study includes an in-depth competitive analysis of these key players in the Spatial computing market with their company profiles, recent developments, and key market strategies.
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Report Metrics |
Details |
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Market size value in 2023 |
USD 97.9 billion |
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Revenue forecast for 2028 |
USD 280.5 billion |
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Growth Rate |
23.4% CAGR |
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Market size available for years |
2019–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Billion) |
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Key Market Drivers |
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Key Market Opportunities |
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Segments Covered |
Technology Type, Component, and Vertical |
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Regions covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
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Companies covered |
Meta, Microsoft, Apple, Sony, Qualcomm, Google, Samsung, Epson, Magic Leap, PTC, HTC, Intel, NVIDIA, Unity, Epic Games, Lenovo, Varjo, EON Reality, Ultraleap, Zappar, Vuzix, Avegant, Taqtile, Blippar, 3D Cloud by Marxent, and 4Experience |
This research report categorizes the spatial computing market to forecast revenue and analyze trends in each of the following submarkets:
Based on Component:
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Hardware
- AR devices
- VR devices
- MR devices
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Software
- Software Development Kit
- Game Engine
- Modeling & Visualization Software
- Content Management System
- Training Simulation Software
- Other Softwares
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Services
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Professional Services
- Training & Consulting
- Support & Maintenance
- System Integration & Implementation
- Managed Services
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Professional Services
- Security
- Content Management
- Performance Monitoring
Based on Technology Type:
- AR Technology
- VR Technology
- MR Technology
Based on Vertical:
- Media & Entertainment
- Manufacturing
- Retail & eCommerce
- Education & Training
- Real Estate
- Healthcare
- Aerospace & Defense
- Travel & Hospitality
- Other Verticals
Based on Region:
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North America
- US
- Canada
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Europe
- UK
- Germany
- France
- Italy
- Rest of Europe
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Asia Pacific
- China
- Japan
- Australia & New Zealand
- South Korea
- Rest of Asia Pacific
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Middle East & Africa
- Saudi Arabia
- UAE
- Rest of the Middle East & Africa
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Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments
- In March 2022, Google acquired Raxium. This acquisition added to Google’s AR hardware portfolio as Raxium develops AR display devices. With this acquisition, Google focuses on developing AR glasses and headsets.
- In February 2022, Sony collaborated with Niantic to develop and expand its AR hardware portfolio. The collaboration would mainly focus on the development of AR for headphones.
- In February 2022, Samsung acquired a German-based AR developer, Apostera, to expand its business in the car technology market, for example, for Head-up Displays in cars.
- In December 2021, Meta worked with game engine developer Unity to create AR and VR content. Unity partnered with Meta Audience Network to offer Unity ads through Unity mediation to in-app bidding. Through the partnership, Unity creators could optimize further revenue potential, and developers would have access to more than 60 ad ecosystem partners and Meta Audience Network.
- In September 2021, Qualcomm acquired Wikitude, a provider of AR SDK that enables developers to create and build AR solutions and experiences that can be deployed across multiple platforms.
Frequently Asked Questions (FAQ):
What is the projected market value of the Spatial computing market?
The global Spatial computing market is expected to grow from USD 97.9 billion in 2023 to USD 280.5 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 23.4% during the forecast period.
Which region has the highest CAGR in the Spatial computing market?
The Asia Pacific region has the highest CAGR in the Spatial computing market.
Which component holds the largest market share above during the forecast period?
The Software segment is forecasted to hold the largest market share in the Spatial computing market.
Which are the major vendors in the Spatial computing market?
Meta, Microsoft, Apple, Sony, and Qualcomm are significant vendors in the Spatial computing market.
What are some of the drivers in the Spatial computing market?
Virtualization in fashion, art, and retail industries; increasing adoption of extended reality in healthcare; availability of affordable hardware; advancements in real-time rendering engines; and replacement technology to reduce virtual meeting fatigue.
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The study involved four major activities in estimating the current market size of the Spatial computing market. We performed extensive secondary research to collect information on the market, the competitive market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, we used the market breakup and data triangulation procedures to estimate the market size of the various segments in the Spatial computing market.
Secondary Research
This research study used extensive secondary sources, directories, and databases, such as D&B Hoovers, DiscoverOrg, Factiva, vendor data sheets, product demos, Cloud Computing Association (CCA), Vendor Surveys, Asia Cloud Computing Association, and The Software Alliance. We referred to sources for identifying and collecting valuable information for this technical, market-oriented, and commercial study of the Spatial computing market.
Primary Research
Primary sources were several industry experts from the core and related industries, preferred software providers, hardware manufacturers, distributors, service providers, technology developers, alliances, and organizations related to all segments of the industry’s value chain. In-depth interviews were conducted with primary respondents, including key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information and assess the market’s prospects.
We conducted primary interviews to gather insights, such as market statistics, the latest trends disrupting the market, new use cases implemented, data on revenue collected from products and services, market breakups, market size estimations, market forecasts, and data triangulation. Primary research also helped understand various technology trends, segmentation types, industry trends, and regions. Demand-side stakeholders, such as Chief Executive Officers (CEOs), Chief Information Officers (CIOs), Chief Technology Officers (CTOs), Vice Presidents (VPs), and Chief Security Officers (CSOs); the installation teams of governments/end users using asset performance management; and digital initiatives project teams, were interviewed to understand the buyer’s perspective on suppliers, products, service providers, and their current use of services, which would affect the overall Spatial computing market.
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Spatial Computing Market Size Estimation
We used top-down and bottom-up approaches to estimate and forecast the Spatial computing market and other dependent submarkets. The bottom-up procedure helped arrive at the overall market size using the revenues and offerings of key companies in the market. With data triangulation methods and validation through primary interviews, this study determined and confirmed the exact value of the overall parent market size. We used the overall market size in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segments.
The bottom-up approach identified the trend of Spatial computing adoption among industry verticals in critical countries that contribute the most to the market. The adoption trend of asset performance management and varying cases of use concerning their business segments were identified and extrapolated for cross-validation. We gave weightage to the use cases identified in different solution areas for the calculation. We prepared an exhaustive list of all vendors offering Spatial computing in the market. We estimated the revenue contribution of all vendors in the market through annual reports, press releases, funding, investor presentations, paid databases, and primary interviews. We evaluated each vendor based on its service offerings across verticals. We extrapolated the aggregate of all companies’ revenue to reach the overall market size. Each subsegment was studied and analyzed for its market size and regional penetration. Based on these numbers, we determined the region split through primary and secondary sources.
The top-down approach prepared an exhaustive list of all vendors in the Spatial computing market. We estimated the revenue contribution of all vendors in the market through their annual reports, press releases, funding, investor presentations, paid databases, and primary interviews. We estimated the market size from revenues generated by vendors from different Spatial computing offerings. We identified other vendors and revenue generated from each service type with the help of secondary and primary sources and combined them to determine the market size. Further, the procedure included an analysis of the Spatial computing market’s regional penetration. With the data triangulation procedure and data validation through primaries, the exact values of the overall Spatial computing market size and its segments’ market size were determined and confirmed using the study. The primary procedure included extensive interviews for key insights from industry leaders, such as CEOs, CTOs, CIOs, VPs, directors, and marketing executives. We further triangulated market numbers with the existing MarketsandMarkets repository for validation.
Spatial computing Market: Top-Down and Bottom-Up approaches
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Data Triangulation
After arriving at the overall market size, the market was split into several segments and subsegments—using the market size estimation processes as explained above. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakup procedures were employed, wherever applicable. The data was triangulated by studying several factors and trends from the Spatial computing market’s demand and supply sides.
Market Definition
Considering the views of various sources and associations on spatial computing, MarketsandMarkets defines spatial computing as “a technology that blends the physical and digital worlds by integrating digital information and experiences into the physical environment. It encompasses a range of technologies and techniques, including augmented reality (AR), virtual reality (VR), mixed reality (MR), and various sensor technologies. In Spatial Computing, digital information and virtual objects are overlaid onto the real world, allowing users to interact with and manipulate them as if they were part of the physical environment. This technology often relies on devices such as head-mounted displays, smartphones, or smart glasses to provide users with immersive and interactive experiences.”
Key Stakeholders
- Spatial Computing hardware and software providers
- Augmented reality (AR), virtual reality (VR), and mixed reality (MR) device manufacturers
- Professional service providers and consulting companies
- Raw material suppliers
- Semiconductor foundries
- Original Equipment Manufacturers (OEM)
- Government organizations, forums, alliances, and associations
- System Integrators (SIs)
- Value-added Resellers (VARs)
- Research organizations
- Technology standard organizations, forums, alliances, and associations
- Technology investors
- End-use verticals
Report Objectives
- To define, describe, and forecast the global spatial computing market based on component, technology type, vertical, and region.
- To forecast the market size of the five major regional segments: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America
- To strategically analyze the market subsegments with respect to individual growth trends, prospects, and contributions to the total market
- To provide detailed information related to the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To strategically analyze macro and micromarkets1 with respect to growth trends, prospects, and their contributions to the overall market
- To analyze industry trends, patents and innovations, and pricing data related to the spatial computing market.
- To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape for major players.
- To profile key players in the market and comprehensively analyze their market share/ranking and core competencies
- To track and analyze competitive developments, such as mergers & acquisitions, product developments, and partnerships & collaborations in the market.
Note 1. Micromarkets are defined as the further segments and subsegments of the market included in the report.
Note 2. The companies’ Core competencies are captured in terms of their key developments and essential strategies to sustain their position in the market.
Available Customizations
With the given market data, MarketsandMarkets offers customizations per the company’s specific needs. The following customization options are available for the report:
Product Analysis
- The product matrix provides a detailed comparison of the product portfolio of each company.
Geographic Analysis
- Further breakup of the Asia Pacific market into countries contributing 75% to the regional market size
- Further breakup of the North American market into countries contributing 75% to the regional market size
- Further breakup of the Latin American market into countries contributing 75% to the regional market size
- Further breakup of the Middle Eastern & African market into countries contributing 75% to the regional market size
- Further breakup of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Spatial Computing Market