Construction Extended Reality Market Report 2025

The construction extended reality market size has grown exponentially in recent years. It will grow from $5.34 billion in 2024 to $6.63 billion in 2025 at a compound annual growth rate (CAGR) of 24.1%. The growth during the historic period can be attributed to the increasing demand for remote site inspections, the rising need for immersive design visualization, the requirement for real-time collaboration across different locations, the growing use of XR in facility management after construction, and the expanding application of XR for clash detection in construction.

The construction extended reality market size is expected to see exponential growth in the next few years. It will grow to $15.54 billion in 2029 at a compound annual growth rate (CAGR) of 23.7%. The growth anticipated in the forecast period is driven by rising global infrastructure development projects, greater adoption of digital transformation within construction, the expansion of smart city initiatives, increasing demand for sustainable and efficient building solutions, and government programs promoting digital construction. Key trends in the forecast period include enhanced XR hardware performance, advancements in 5G connectivity enabling real-time data streaming, integration with building information modeling, improved realism in virtual and augmented simulations, and cloud computing integration for scalable XR solutions.

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.

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.

In March 2022, Autodesk Inc., a US-based software firm, acquired The Wild for an undisclosed sum. With this acquisition, Autodesk gained access to The Wild’s virtual reality platform, expert team, and a customer network of over 700 accounts. This move aligns with Autodesk’s broader strategy to strengthen its construction software offerings by integrating immersive design review capabilities. The Wild, also based in the US, specializes in construction extended reality solutions.

Major players 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, Immersafety.

North America was the largest region in the construction extended reality market in 2024. 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.

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.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the construction sector, particularly in materials procurement and project costs. Higher duties on imported steel, aluminum, lumber, and machinery have driven up expenses for builders, contractors, and infrastructure developers, leading to increased project bids and delayed timelines. Construction equipment manufacturers face similar challenges, with tariffs on essential components and raw materials inflating production costs and squeezing margins. Additionally, retaliatory tariffs in international markets have curtailed exports of U.S.-made construction equipment and materials, further affecting profitability. The sector must now prioritize local sourcing, modular construction techniques, and supply chain diversification to control costs and ensure project viability amid ongoing trade uncertainties.

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.

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.

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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