The 2025 Extended Reality (XR) Report highlights the rapid growth of immersive technologies, including virtual reality (VR), augmented reality (AR), and mixed reality (MR). It examines how XR is transforming industries like healthcare, education, and manufacturing, driven by advancements in hardware, 5G, and AI.
The report covers key trends, such as smart glasses, haptic technology, and geolocation, and profiles leading XR technology providers, startups, and investors. It offers insights into how XR is shaping workflows, creating new business models, and the future of human-digital interaction.
Executive Summary: Extended Reality (XR) Report 2025
This XR outlook report is created using data obtained from the Big Data and AI-powered StartUs Insights Discovery Platform, covering more than 4.7 million global companies, as well as 20K+ technologies and emerging trends.
We also analyzed a sample of 890+ extended reality startups developing innovative solutions to present five examples from emerging extended reality market trends.
- Industry Growth Overview: The extended reality market has more than 3300 companies and 890 startups. It is expected to grow at a compound annual growth rate (CAGR) of 28.3% from 2024 to 2029. On a micro level, the market grew by a rate of 17.14% last year as per our platform’s latest data.
- Manpower & Employment Growth: The market employs over 101K individuals, with an addition of 11K+ new employees in the last year.
- Patents & Grants: The extended reality field has secured over 7620 patents and more than 700 grants. The patent growth rate is 14% yearly, with the US and China leading in patent issuance.
- Global Footprint: Key hubs include the United States, India, the United Kingdom, Germany, and Canada, while major city hubs encompass London, New York City, Los Angeles, San Francisco, and Singapore.
- Investment Landscape: The total funding rounds closed exceeds 2670, with average investment values exceeding USD 7 million per round. More than 2K investors are actively involved.
- Top Investors: Notable investors including Second Spectrum, Hon Hai Precision Industry, Genius Sports, and more have collectively invested over USD 693.4 million.
- Startup Ecosystem: Five innovative startups, MEDICAL iSIGHT (surgical cognition platform), TransformologyXR (smart city virtual model), eXtended Reality Internet of Things (XRIT) (cultural heritage and historical exploration), Simfinity (training and learning platform), and EXAR (virtual factory tours) showcase the extended reality market’s global reach and entrepreneurial spirit.
What Data is Used to Create This Extended Reality Report?
Based on the data provided by our Discovery Platform, we observe that the extended reality ranks among the top 5% in the following categories relative to all 20K topics in our database.
These categories provide a comprehensive overview of the market’s key metrics and inform the short-term future direction of the market.
- News Coverage & Publications: The extended reality market received coverage in over 2320 publications in the last year.
- Funding Rounds: Our database contains data on more than 2670 funding rounds.
- Manpower: The workforce in the extended reality domain exceeds 101K workers, having added more than 11K new employees in the last year.
- Patents: The extended reality market holds more than 7620 patents.
- Grants: Over 700 grants have been awarded within the extended reality domain.
- Yearly Global Search Growth: The market demonstrates yearly global search growth at 120.16%.
Methodology: How We Created This Extended Reality Report
This report is based on proprietary data from our AI-powered Startus Insights Discovery Platform, which tracks 25 million companies and 20 000 technologies and trends globally, including detailed insights on approximately 5 million startups, scaleups, and tech companies. Leveraging this extensive database, we provide actionable insights on emerging technologies and market trends.
For this report, we focused on the evolution of extended reality over the past 5 years, utilizing our platform’s trend intelligence feature. Key data points analyzed include:
- Total Companies working on the trend
- News Coverage and Annual Growth
- Market Maturity and Patents
- Global Search Volume & Growth
- Funding Activity and Top Countries
- Subtrends within extended reality
Our data is refreshed regularly, enabling trend comparisons for deeper insights into their relative impact and importance.
Additionally, we reviewed external resources to supplement our findings with broader market data and predictions, ensuring a reliable and comprehensive overview of the extended reality market.
Explore the Data-driven Extended Reality Outlook for 2025
According to the PR Newswire, the XR market is projected to grow by USD 1.04 trillion from 2024 to 2028, with a 56.45% CAGR, driven by advances in sensor technology and 5G.
The extended reality report 2025 uses data from the Discovery Platform and encapsulates the key metrics that underline the sector’s dynamic growth and innovation. With over 890 startups in our database and more than 3300 companies globally, the extended reality market has experienced a growth rate of 17.14% over the past year.
The Market and Market report highlights that the global extended reality market is expected to grow from USD 24.42 billion in 2024 to USD 84.86 billion in 2029, with a compound annual growth rate (CAGR) of 28.3% from 2024 to 2029. On a granular level, the market grew by a rate of 17.14% last year as per our platform’s latest data.
Credit: Zion Market Research
Additionally, the workforce in the market has expanded, reaching over 101K employees, with an increase of 11K employees in just the last year.
According to the Mordor Intelligence report, geographically, the Asia-Pacific region leads in market growth, with North America and Europe closely following, driven by 5G deployment and affordable VR devices.
The data from our platform is highlighted in the heatmap that indicates that the leading country hubs, with the United States, India, the United Kingdom, Germany, and Canada stand out.
Whereas, top city hubs include London, New York City, Los Angeles, San Francisco, and Singapore. These regions represent the epicenter of innovation, growth, and opportunity in the rapidly evolving extended reality landscape.
A Snapshot of the Global Extended Reality Market
The data for the extended reality market reveals an annual growth rate of 17.14%. There are more than 890+ startups in the sector:
Within the ecosystem, there are currently 890+ startups, with over 290 of them in the early stages of development. Additionally, more than 90 startups have undergone mergers and acquisitions.
The patent landscape within extended reality is over 7620 patents filed and more than 330 applicants contributing to technological developments.
The yearly patent growth rate of 14% reflects a continuous push for innovation and intellectual property development. The USA leads as the top issuer, with over 3960 patents granted, followed by China with 830+ patents.
Explore the Funding Landscape of the Extended Reality (XR) Market
The average investment value per funding round exceeds USD 7 million. With over 2K investors involved, the extended reality market attracts a substantial investor base. Further, more than 2670 funding rounds have been closed, indicating ongoing financial support for startups and growth-stage companies.
Who is Investing in the Extended Reality Market?
The top investors in the extended reality market have collectively invested over USD 693.4 million.
- Second Spectrum has invested USD 110.1 million in at least 1 company.
- Hon Hai Precision Industry has committed USD 106.3 million to at least 1 company. For Q3 2024, Hon Hai achieved a revenue of USD 57.35 billion, with cumulative revenue for the first nine months reaching USD 145.7 billion.
- Genius Sports has contributed USD 100 million to at least 1 company. For Q1 2024, it reported a revenue of USD 119.7 million.
- Aptos has invested USD 88.4 million in at least 1 company. In 2024, Aptos Labs led a funding round for the decentralized gamer network KGeN, raising USD 10 million.
- Trinity Ventures has provided USD 71.8 million across at least 1 company.
- XREAL has invested USD 55.3 million in at least 1 company. It has positioned itself as a leader in the AR glasses market, capturing 51% of the global market share as the company crosses USD 1 billion valuation according to Tech Funding News.
- New Enterprise Associates has committed USD 55 million across 2 companies. It led a USD 100 million series A funding round for Sakana AI, a Tokyo-based AI research and development company.
- Sapphire Ventures has contributed USD 53.8 million to at least 1 company. Its 2024 mid-year review shows SaaS venture funding hit USD 147 billion, marking 5% year-over-year growth.
- NewView Capital has invested USD 52.7 million in at least 1 company. It also participated in a USD 50 million Series E funding round for Nium, a financial technology startup.
Access Top Extended Reality (XR) Innovations & Trends with the Discovery Platform
Following are the emerging trends in the extended reality market along with their firmographic details:
- Smart Glasses are emerging as one of the most impactful technologies in the extended reality (XR) domain. With over 1380 companies working in this market and 145K+ employees, this domain continues to evolve at a steady pace, showing an annual growth rate of 27.92%. With 8K+ new employees joining the market in the past year, the potential for further growth in smart glasses is evident as organizations look for ways to improve worker efficiency, training capabilities, and overall experiences.
- Geolocation Technology integrated with XR is transforming industries such as retail, tourism, and real estate. With over 2780 companies and 110K+ employees working in this field, geolocation is becoming an essential component of the XR experience. The market has seen 7K new hires over the past year, and it is growing at an annual rate of 15.77%. XR-powered geolocation overlays virtual information onto the real world based on location, improving user engagement and delivering highly interactive, context-aware experiences.
- Haptic Technology in extended reality is improving industries such as gaming, healthcare, and automotive by adding feedback to digital experiences. With over 900 companies and 49K+ employees involved in this domain, the haptics market is steadily expanding. The market welcomed 2K new hires in the past year and is growing at an annual rate of 7.3%. By simulating touch sensations, XR-powered haptics make virtual experiences more immersive and lifelike.
5 Top Examples from 890+ Innovative Extended Reality (XR) Startups
The five innovative startups showcased below are picked based on data including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.
MEDICAL iSIGHT delivers a Surgical Cognition Platform
US-based startup MEDICAL iSIGHT develops an extended reality (XR) software platform XRAI for minimally invasive surgical procedures. This platform provides surgeons with real-time 3D visualizations and guidance during complex vascular procedures.
This software integrates critical patient data, including 3D models, DICOM files, fluoroscopy, ultrasound, and heart monitor streams, into a unified collaboration space that is accessible through XR headsets or computers.
XRAI’s focus is on improving stroke treatment, particularly the mechanical thrombectomy procedure, by providing interventionalists with real-time, data-driven insights.
Further, the software supports a variety of medical disciplines and is compatible with multiple hardware platforms, including Microsoft HoloLens, Magic Leap 2, and Apple Vision Pro.
TransformologyXR deploys Smart City Virtual Model
UK-based startup TransformologyXR offers solutions like TXR Meta City, which transforms entire urban environments into immersive digital ecosystems. TXR Site facilitates virtual site planning and scenario testing for city planners. Its TXR Landmark service provides tools for exploring and designing iconic urban spaces.
Besides, TXR Show Home enables real estate developers and home builders to showcase properties with lifelike detail for buyers to visualize layouts, designs, and customizations. The startup also utilizes extended reality (XR)-based solutions that integrate smart cities and real estate into the metaverse.
Its platform combines gaming engines, geographic information systems (GIS) technology, and artificial intelligence (AI) to create virtual representations of physical environments.
Additionally, GIS technology improves the integration of spatial data with XR environments for accurate mapping and visualization capabilities.
eXtended Reality Internet of Things (XRIT) offers Cultural Heritage and Historical Exploration
eXtended Reality Internet of Things (XRIT) is an Italian startup that develops immersive technologies for tourism, engineering, e-sports, and gaming.
It offers XTOURS, an extended reality platform that enables travel enthusiasts to explore historical and futuristic worlds through interactive, AI-guided tours.
Additionally, XRIT offers XRS, a patent-pending system for using extended reality in construction. XRS integrates with cloud platforms, allowing property owners to view virtual content with centimeter precision, even outdoors and in high brightness.
The startup also offers X-ZOMBIE, an augmented reality-based gaming experience where players interact with detailed environments to track down and defeat zombies.
Finally, XRIT offers HADO, which is the world’s first e-sport based on augmented reality. HADO combines wearable devices, motion sensors, and smartphones to create a new genre of team sports.
Simfinity builds a Training and Learning Platform
Chinese startup Simfinity offers an XR platform that transforms education and training by delivering immersive, interactive, and intuitive experiences.
The startup integrates three technologies SIMPELO, SIMPULSE, and the XR platform for training and education. SIMPELO is an AI-driven solution to improve corporate training by combining immersive simulations with personalized learning paths.
SIMPULSE focuses on revolutionizing CPR training with an intelligent manikin that delivers real-time feedback on CPR techniques, such as compression depth and cycle precision.
Lastly, the XR platform serves as an all-in-one solution for immersive education and training, offering real-time engagement, secure data management, and hardware compatibility with various XR devices.
Further, with its expanding content library, the XR platform supports diverse learning paradigms, from schools to corporate settings.
EXAR renders Virtual Factory Tours
EXAR is a Turkish startup that specializes in virtual reality (VR) and mixed reality (MR) solutions to drive digital transformation across industries.
Its 3D-AR Configurator integrates VR and MR technologies to create interactive simulations and virtual environments for a range of applications. These include product design, machine simulations, factory tours, and customer engagement.
The platform enables businesses to offer immersive virtual factory tours and showroom experiences. EXAR also provides tools for designing and exploring architectural spaces, optimizing interior designs, and examining product prototypes virtually.
The startup further supports industrial training, retail experiences, and product prototyping for a sustainable way to improve product visualization.
Gain Comprehensive Insights into Extended Reality (XR) Trends, Startups, or Technologies
In 2025, the extended reality (XR) market is witnessing major growth, driven by developments in immersive technologies, AI integration, and real-time interactive experiences.
As industries continue to adopt XR solutions, they will increase training, customer engagement, and operational efficiency across sectors.
Get in touch to explore all 890+ startups and scaleups, as well as all market trends impacting 3300+ companies.
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