Immersive Entertainment Market to Hit $519.77 Billion by 2031

Research firm The Insight Partners expects the immersive entertainment market, valued at $87.51 billion in 2023, to surge to $519.77 billion by 2031, growing at a compound annual rate of 24.9 percent.

Technologies such as augmented, mixed, and virtual reality headsets, 3D displays, 3D audio, gesture recognition, spatial sensing, holograms, speech recognition haptics, artificial intelligence, drones, and cameras are becoming accessible, affordable, and valuable, which is encouraging their adoption in areas including gaming, education, and entertainment, the firm concluded.

With technological advancements, science fiction will increasingly become a reality with realistic and complex immersive experiences that blur the boundaries between the virtual and physical worlds, it said further, noting that although immersive entertainment is still in the early stages, it is already starting to significantly impact the video game, movie, and music industries. In the coming years, The Insight Partners anticipate immersive entertainment tech to dramatically affect several other areas, including retail, healthcare, and education.

Over the past few years, technological advancements have brought the world 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, the firm said.

Another is AI, which The Insight Partners said is capable of 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, it said.

Immersive technologies offer new possibilities for the entertainment industry, allowing users to fully immerse themselves in virtual environments or engage in novel and fascinating interactions with fictitious characters and tales, the firm said further.
In past years, VR systems were bulky and expensive, making them inaccessible to most consumers, but now VR headsets have become widely available and reasonably priced, it said.

The Insight Partners identified Microsoft, Qualcomm, Google, Sony Group, Infosys, HTC, Samsung Electronics, Apple, Magic Leap, and Salesforce as the leading providers of immersive entertainment technologies.