Immersive Technology in the UK - Market Research Report (2014-2029)
London, United Kingdom
Last Updated: August 2024
SIC SP0.032Revenue
£3.7bn
Past 5-Year Growth
Profit
£X.Xbn
Employees
11,371
Businesses
2,138
Wages
£XXX.Xm
Immersive Technology in the UK industry analysis
Immersive technologies, or extended reality (XR) – an umbrella term for virtual reality (VR), augmented reality (AR), mixed reality (MR) and haptics – have recorded a boom in popularity over the past decade. In line with greater social acceptance of technology, XR has revolutionised how people interact with data, information and content, making it a staple in modern business processes and next-generation entertainment. Recognising that XR could become the ‘new norm', the government, research agencies and private equity stakeholders have supported developments through investment funding and business incubation.
Trends and Insights
- Immersive technology sees robust growth. Spurred by public and private sector investment, various applications across numerous industries and pandemic-induced demands, the Immersive Technology industry is experiencing strong growth.
- Augmented reality (AR) offers massive growth potential. As a blend of digital information with physical elements, AR is intensively penetrating diverse markets, including product design, filmmaking and medical practices, offering enhanced visualisation and context.
- London reigns as UK's immersive tech nucleus. The capital offers a large tech talent pool, funding for immersive technology projects and vast downstream media tech community, positioning itself as an appealing destination for immersive specialists.
- The need for innovation and skilled labour escalates. To secure investments and efficiently run operations, startups must present unique concepts and ensure access to a talent pool adept at managing diverse business, software and technological challenges.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 19.7 % over the past five years, to reach an estimated £3.7bn in 2024.
Trends and Insights
Public and private sector support fuels strong growth
- Immersive technology is one of the UK’s fastest growing industries, with significant funds ploughed into research and development in recent years to ensure that the UK is at the forefront of developments in VR, AR and MR technology.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Public funding aims to continue to unlock new immersive technology capabilities
- The government has committed significant funding through various research councils to develop the UK's immersive technology capabilities.
Biggest companies in the Immersive Technology in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
The Framestore Ltd | 108.1 | |
The Foundry Visionmongers Ltd | 80.2 | |
Holovis International Ltd | 54.0 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Augmented reality, Virtual reality and Mixed reality. Augmented reality is the largest segment of the Immersive Technology in the UK.
Trends and Insights
Unleashing the power of augmented reality (AR)
- Augmented reality refers to the real-time digital overlay of information over physical elements.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Software Publishing in the UK
- Software Development in the UK
- App Development in the UK
- Cyber Security Software Development in the UK
International industries
- Software Publishing in the US
- Software Publishing in Canada
- Software Publishing in Australia
- Computer System Design Services in New Zealand
- Programmierungstätigkeiten
Table of Contents
About this industry
Industry definition
Operators design and develop immersive visualisation software programs, systems and networks. This includes virtual reality, augmented reality, mixed reality and haptic technologies. Intellectual property is subsequently sold to clients under licence. Operators also undertake bespoke immersive tech software development and content creation projects on behalf of clients.
What's included in this industry?
Virtual realityAugmented realityMixed realityMiscellaneousCompanies
The Framestore LtdThe Foundry Visionmongers LtdHolovis International LtdPurchase this report to view all 4 major companies in this industry.
Related Terms
INTELLECTUAL PROPERTY (IP)INTERNET OF THINGS (IOT)ARTIFICIAL INTELLIGENCE (AI)EXTENDED REALITY (XR)Industry Code
SIC 62.01 - Immersive Technology in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Immersive technology sees robust growth. Spurred by public and private sector investment, various applications across numerous industries and pandemic-induced demands, the Im...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Augmented reality (AR) offers massive growth potential. As a blend of digital information with physical elements, AR is intensively penetrating diverse markets, including pro...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
London reigns as UK's immersive tech nucleus. The capital offers a large tech talent pool, funding for immersive technology projects and vast downstream media tech community,...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The need for innovation and skilled labour escalates. To secure investments and efficiently run operations, startups must present unique concepts and ensure access to a talen...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
There are no Major Companies in the industry. The Immersive Technology industry has no major players, as no single enterprise generates enough income from the design and deve...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of The Framestore Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of The Foundry Visionmongers Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Holovis International Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for The Framestore Ltd, and factors influencing its performance in the industry
- Description and key data for The Foundry Visionmongers Ltd, and factors influencing its performance in the industry
- Description and key data for Holovis International Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Copyright Act 1988 combats intellectual property theft. It prohibits the unauthorised use of original designs, content and patents, securing innovative concepts and creat...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Rapidly growing capabilities of immersive technology aid strong profitability. Rising uptake and increased applications of immersive technologies in downstream markets ensure...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Immersive Technology in the UK industry in United Kingdom in 2024?
The market size of the Immersive Technology in the UK industry in United Kingdom is £3.7bn in 2024.
How many businesses are there in the Immersive Technology in the UK industry in 2024?
There are 2,138 businesses in the Immersive Technology in the UK industry in United Kingdom, which has grown at a CAGR of 10.0 % between 2019 and 2024.
Has the Immersive Technology in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Immersive Technology in the UK industry in United Kingdom has been growing at a CAGR of 19.7 % between 2019 and 2024.
What is the forecast growth of the Immersive Technology in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Immersive Technology in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Immersive Technology in the UK market in United Kingdom?
The biggest companies operating in the Immersive Technology market in United Kingdom are The Framestore Ltd, The Foundry Visionmongers Ltd and Holovis International Ltd
What does the Immersive Technology in the UK in United Kingdom include?
Virtual reality and Augmented reality are part of the Immersive Technology in the UK industry.
Which companies have the highest market share in the Immersive Technology in the UK in United Kingdom?
The company holding the most market share in United Kingdom is The Framestore Ltd.
How competitive is the Immersive Technology in the UK industry in United Kingdom?
The level of competition is high and increasing in the Immersive Technology in the UK industry in United Kingdom.
