Construction Extended Reality Market Report 2026

The construction extended reality market size has grown exponentially in recent years. It will grow from $6.63 billion in 2025 to $8.21 billion in 2026 at a compound annual growth rate (CAGR) of 23.9%. The growth in the historic period can be attributed to rising use of virtual modeling in construction, growing adoption of xr for design validation, increasing reliance on immersive training tools, expansion of digital collaboration workflows, rising demand for remote visualization solutions.

The construction extended reality market size is expected to see exponential growth in the next few years. It will grow to $19.19 billion in 2030 at a compound annual growth rate (CAGR) of 23.6%. The growth in the forecast period can be attributed to increasing integration of AI-driven xr tools, rising adoption of mixed reality in field operations, growth in cloud-connected immersive platforms, expanding use of xr for clash detection, increasing deployment of advanced reality capture systems. Major trends in the forecast period include integration of AI-enhanced xr visualization, expansion of high-fidelity virtual modeling platforms, adoption of cloud-based immersive collaboration tools, growth of IOT-connected xr workflows, automation of xr-driven construction simulations.

The rising number of infrastructure projects is anticipated to drive the growth of the construction extended reality market in the coming years. Infrastructure projects involve large-scale developments aimed at building or upgrading essential systems such as transportation networks, utilities, and communication infrastructure that are critical to a region’s economic progress and everyday operations. This growth in infrastructure development is largely fueled by rapid urbanization, which increases the demand for improved housing, transportation, and utility services to accommodate growing urban populations. Construction extended reality plays a key role in these projects by providing immersive design visualization, enabling stakeholders to identify and resolve design issues early on, thereby reducing costly errors and project delays. For example, in December 2024, according to Homes England, a UK-based government agency, approximately 10,434 housing units were completed in the first half of the 2024-2025 period, marking a 32% rise from the 7,929 affordable homes finished during the same period in 2023-2024. As a result, the growth in infrastructure projects is contributing to the expansion of the construction extended reality market.

The increasing government and private investments in digital transformation are expected to drive the growth of the construction extended reality market in the coming years. Such investments refer to financial commitments made by public and private organizations to adopt and integrate advanced digital technologies aimed at improving efficiency, fostering innovation, and enhancing overall operational performance. These investments are rising as organizations seek to streamline processes, reduce costs, and boost productivity through digital solutions. In the construction sector, government and private investments support the adoption of AR, VR, and MR technologies, which improve design visualization, on-site collaboration, workforce training, and overall project efficiency. For example, in June 2025, Engineering in a Digital Age, an Ireland-based software company, reported that data center planning applications in the UK increased by over 40% in 2024, with Microsoft investing £2.5 billion ($3.18 billion) to double the country’s AI infrastructure capacity by 2026. Consequently, the growing investments in digital transformation are propelling the expansion of the construction extended reality market.

Leading companies in the construction extended reality market are increasingly engaging in strategic collaborations to expand their market reach and foster technological innovation. These partnerships involve cooperative agreements where organizations combine their expertise, resources, or capabilities to achieve shared long-term goals. For instance, in January 2025, Capital Group, a US-based investment management firm, partnered with FORCE Technology, a Denmark-based technology consultancy, to introduce the extended reality (XR) full mission bridge simulator known as SimFlex. This simulator delivers a high-quality training environment by integrating real ship equipment with a realistic virtual bridge setup. It features advanced navigation technologies from FURUNO Hellas S.A., including ECDIS, autopilot, and radar, all within a fully green-screened space. A key benefit is its ability to facilitate joint training sessions across global teams, enhancing remote collaboration. Additionally, it promotes sustainability by reducing energy use and the need for physical travel.

Major companies operating in the construction extended reality market are Microsoft Corporation, Sony Group Corporation, Lenovo Group Limited, Accenture Plc, NVIDIA Corporation, Seiko Epson Corporation, Autodesk Inc., Trimble Inc., PTC Inc., Unity Technologies, Bentley Systems Incorporated, Magic Leap Inc., EON Reality Inc., RealWear Inc., HoloPundits Inc., Vuzix Corporation, Varjo Technologies Oy, ManageXR, Simbott, and Immersafety.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the construction extended reality market by increasing costs for imported sensors, processors, optical components, and advanced XR display hardware essential for immersive construction solutions. Architecture, engineering, and construction firms in regions such as North America, Europe, and Asia-Pacificwhere reliance on imported digital hardware is significantexperience the highest impact. However, tariffs are encouraging local device assembly, regional optical component manufacturing, and innovation in cost-efficient XR systems, strengthening supply chain resilience.

The construction extended reality market research report is one of a series of new reports that provides construction extended reality market statistics, including construction extended reality industry global market size, regional shares, competitors with a construction extended reality market share, detailed construction extended reality market segments, market trends and opportunities, and any further data you may need to thrive in the construction extended reality industry. This construction extended reality market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Construction extended reality refers to the integration of immersive digital environments with physical construction processes, facilitating enhanced visualization and interaction within simulated settings. It combines multiple immersive experiences to create a dynamic interface between the real and virtual worlds. This method enables a more intuitive grasp of spatial elements and workflows in construction.

The primary device types in construction extended reality include augmented reality (AR), virtual reality (VR), and mixed reality (MR). Augmented reality (AR) is a technology that overlays digital content - such as 3D models, images, or data - onto the real-world environment using devices such as smart glasses, tablets, or smartphones. It is utilized for design and planning, project management, training and simulation, maintenance and operations, among other applications, by various end-users including architecture, engineering, and construction (AEC) firms, real estate developers, contractors and builders, government and public infrastructure agencies, and more.North America was the largest region in the construction extended reality market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in construction extended reality report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the construction extended reality market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The construction extended reality market consists of revenues earned by entities by providing services such as virtual modeling, remote collaboration, project visualization, design validation, and clash detection. The market value includes the value of related goods sold by the service provider or included within the service offering. The construction extended reality market also includes sales of virtual reality headsets, mixed reality displays, reality capture systems, and on-site AR display units. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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