Perkins Coie’s XR Report reveals XR and NextGen tech growth will be slower than last year

Industry is expected to grow slowly in the upcoming year.
RISE OF WEB3 TECHNOLOGIES TO ACCELERATE XR

Seattle-based firm Perkins Coie has released its sixth annual XR report. The survey of 150 industry stakeholders involved in XR and NextGen technology, which encompasses technological advancements like Web3 and the metaverse, shows that immersive technology has reached a critical point.

Related: Omdia releases forecast report on VR headset and content revenue

Conducted from April through May 2022, the survey was preceded and informed by group interviews with experts in the field. This year’s findings reveal that while stakeholders still expect the industry to grow, the pace of growth will be slower than in recent years.

“Respondents this year seem to have a pragmatic sense of optimism about the industry, considering potential economic headwinds and the need to deliver on the hype of immersive technology,” said Kirk Soderquist, co-chair of the Interactive Entertainment group and the Digital Media & Entertainment, Gaming & Sports industry group at Perkins Coie. “Our respondents are also clearly focused on NextGen technologies, as about half (49%) expect widespread adoption of the tech within the next five years.”

In addition to the investment landscape and development of NextGen technologies, the 2022 survey asked about immersive technology in various industry verticals. As found in the 2021 survey, workforce development and training continue to provide plenty of opportunities for XR. Most respondents (72%) agreed that immersive technology in this area will increase over the next year compared to last year.

Which groups will benefit from advancements in XR technology graph

Compared to last year, respondents appear more pessimistic about their spending for the year ahead, which is unsurprising given the uncertain economic climate. Just over half of the respondents (52%) expect XR investment in 2023 will be higher than it was in 2022, 83% said the same in 2021.

But industry experts still predict growth—98% of respondents predicted that their XR spending will increase either moderately (70%) or greatly (28%) in the next year. The industry is exploring NextGen technology, too; 54% of survey respondents are developing or investing in Web3 or the metaverse.

Respondents also believe that XR and NextGen have a symbiotic relationship, with most respondents (88%) agreeing that XR is the gateway to NextGen technology and that NextGen is dependent on XR.

next: VR market set to double its worth to $3.2B by 2024

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