Mixed reality incorporates augmented and virtual reality technologies, allowing gamers to step into an immersive virtual environment and experience virtual realism in real time. It’s becoming increasingly popular, and a new analysis by Transparency Market Research (TMR) predicts that the market will grow by an astonishing rate of 38.06% per year between now and 2025.
The technology is used in games for training and learning, as well as for entertainment.
Gaming for entertainment accounts for a greater share of revenues and will drive the growth of the market, but the next few years are also expected to see the rising adoption of mixed reality technology in military training and in theme parks.
The personal gaming segment is anticipated to lead in terms of revenue contribution over the coming years, followed by theme parks.
Another factor likely to boost the mixed reality in gaming market is the continued growth of smart computing devices which come with the technology.
In terms of technology suppliers, TMR noted that the market is fragmented due to the presence of a multitude of players. Many of these are currently investing in research and development and setting up new facilities for innovation.
Key players are also choosing to enter into collaborations and partnerships. For example, Microsoft recently worked with HP, Dell, Lenovo and Acer to develop mixed reality headsets that are expected to be released soon.
Segmenting the market on the basis of component (hardware, software and mobile apps), the report found that — while it’s an essential element of mixed reality gaming — hardware contributed the least revenue to the overall market in 2015. Mobile apps were in first place, followed by software.
By 2025, the overall market is projected to be worth $187.13m (£141.7m).