At 26.5% CAGR, North America Immersive Entertainment Market is Projected to be Worth US$ 2,17,769.94 Million by 2031, says Business Market Insights

According to Business Market Insights' research, the North America immersive entertainment market was valued at US$ 33,105.67 million in 2023 and is anticipated to reach US$ 2,17,769.94 million by 2031, registering a CAGR of 26.5% from 2023 to 2031. Increasing adoption of artificial intelligence technology and advancements in entertainment industry are among the critical factors attributed to drive the North America immersive entertainment market growth.

Over the past few years, technological advancements have brought closer to completely realistic and immersive experiences in VR and immersive entertainment. The application of AI to improve VR and immersive entertainment capabilities has been one of the main forces behind this advancement. AI is the process of educating robots to analyze and interpret data to make predictions and judgments. It can take many different forms in the context of VR and immersive entertainment such as improving the realism of virtual settings or producing lifelike interactions between users and virtual items. The power of AI to create realistic and dynamic landscapes is one of the most significant ways technologies transform VR and immersive entertainment. This is particularly crucial in the gaming industry, as players anticipate realistic and captivating settings that react to their choices and actions. AI can also improve the realism of virtual characters in VR and immersive entertainment by combining ML and computer vision, which teaches computers to make virtual figures move and animate realistically. The creation and use of VR and immersive entertainment are already significantly impacted by AI, and in the years to come, this influence will more likely increase. AI is contributing to developing more immersive and captivating user experiences by increasing the realism of virtual environments, facilitating better interactions between users and virtual objects, and automating content creation.

Increasing adoption of cutting-edge technologies such as AL and ML supports businesses to access real-time customer engagement. In March 2023, Infinite Reality announced the launch of an AI feature set offering customized recommendations for immersive events, entertainment, and retail experiences. The new capabilities in all Infinite Reality experiences and products will enable users to access real-time engagement with an avatar salesperson who can be quickly and intuitively trained on a brand's products and services and a consumer's preferences. Thus, the rising adoption of AI technologies is expected to emerge as a key trend in the immersive entertainment market during the forecast period.

On the flip side, high cost associated with immersive entertainment solutions hampers the growth of North America immersive entertainment market.

Based on component, the North America immersive entertainment market is bifurcated into hardware and software & services. The hardware segment held 72.9% market share in 2023, amassing US$ 24,122.00 million. It is projected to garner US$ 1,61,966.73 million by 2031 to register 26.9% CAGR during 2023-2031.

By technology, the North America immersive entertainment market is segmented into virtual reality (VR), augmented reality (AR), mixed reality (MR), and others. The virtual reality (VR) segment held 35.7% share of North America immersive entertainment market in 2023, amassing US$ 11,807.16 million. It is projected to garner US$ 77,203.80 million by 2031 to expand at 26.5% CAGR from 2023 to 2031.

In terms of end user, the North America immersive entertainment market is categorized into media & entertainment, gaming, design & architecture, retail, education, and others. The media & entertainment segment held 27.5% share of North America immersive entertainment market in 2023, amassing US$ 9,108.02 million. It is predicted to garner US$ 63,280.77 million by 2031 to expand at 27.4% CAGR between 2023 and 2031.

Based on country, the North America immersive entertainment market is categorized into the US, Canada, and Mexico. Our regional analysis states that the US captured 88.5% share of North America immersive entertainment market in 2023. It was assessed at US$ 29,305.14 million in 2023 and is likely to hit US$ 1,96,660.72 million by 2031, registering a CAGR of 26.9% during 2023-2031.

Key players operating in the North America immersive entertainment market are Microsoft Corp; Qualcomm Inc; Google LLC; Sony Group Corp; Infosys Ltd; HTC Corp; Samsung Electronics Co Ltd; Apple Inc; Magic Leap, Inc.; and Salesforce Inc, among others.

- In October 2022, Microsoft Corp partnered with Meta to bring Mesh for Microsoft Teams to Meta Quest devices. Mesh for Teams builds on years of research and Microsoft Cloud innovation, from Azure Digital Twins to Dynamics 365 Remote Assist and Teams video meetings. It is designed to help people gather virtually in the place where work happens on any device, including smartphones, laptops, and mixed-reality headsets. Mesh for Teams with Meta Quest Pro and Meta Quest 2 devices will enable people to connect and collaborate as though they are together in person.

- In October 2023, Qualcomm Inc announced the most powerful computing processor it has ever created for the PC: Snapdragon X Elite. This groundbreaking platform ushers in a new era of premium computing by delivering a massive leap forward with best-in-class CPU performance, leading on-device AI inferencing, and one of the most efficient processors in a PC with up to multiple days of battery life.



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