Assessment of the potential of Lithuania’s extended reality ecosystem

Problem

XR (Extended Reality) is an umbrella term encompassing immersive technologies such as Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR). These technologies expand our perception of reality and our senses by adding digital information to the real world or by creating entirely new digital environments, thereby transforming the way we work, live, and interact with each other.

At the European Union level, the potential of XR sector is seen in areas such as healthcare, education, cultural and creative industries, industry, and the green transition. Rapidly advancing technologies will enable more precise medical procedures, increasing their speed and accuracy while reducing risk. Experience-based learning processes will allow for faster, more efficient, and safer knowledge acquisition. In industry, this will not only improve specialist training but also reduce production costs and time, while minimizing the negative environmental impact during the production process. In the cultural and creative industries, XR will offer new experiences for users and new ways of creating. Finally, the ability to use accurate 3D models to simulate the effects of global warming will help to identify better and more energy-efficient solutions.

According to data from Fortune Business Insights, in 2024 the global XR market was valued at approximately EUR 170.48 billion. It is projected to grow to EUR 234 billion by 2025 and to reach as much as EUR 1.5 trillion by 2032. This rapid growth is attributed to the increasing demand for XR technologies across various sectors such as gaming, healthcare, education, retail, engineering, and transportation.

According to a study commissioned by the European Commission, in 2021 the European XR market alone generated EUR 7.95 billion. The study also revealed that 98% of surveyed experts believe that extended reality (XR) technologies will significantly contribute to the development of their respective sectors over the next five years. This is further supported by the 2025 European XR Industry Report by XR4Europe, which indicates that the majority of analysed companies expect revenue growth. Based on statistics provided by the European Commission, it is projected that:

• By the end of 2025, XR will create up to 860,000 new jobs in Europe.
• The European XR market will grow to EUR 88.87 billion by 2030.
• The global virtual worlds market will reach EUR 800 billion by 2030.

However, there is currently no data on Lithuania’s XR ecosystem or its potential within the global market context. Therefore, the growing international focus, promising growth forecasts for the sector, and the unexplored Lithuanian XR ecosystem creates the need to assess the country’s sector potential. Such an assessment would allow for the development of a well-founded XR ecosystem coordination strategy, resource allocation, and further steps to enable Lithuania to proactively engage in the XR market and participate in its policy-making at the EU level.

Goal

Project goal is to assess the potential of Lithuania’s Extended Reality sector in the context of the virtual worlds market.

Participants

2024/25

Gustas Navickas