D1.1 offers a comprehensive analysis of the Extended Reality (XR) sector, aiming to assess the current state, identify market needs, and explore training trends, particularly focusing on the enhancement of green skills. This analysis is grounded in a comprehensive desk study, responses from a distributed questionnaire, and in-depth interviews with industry and academic stakeholders. The report identifies key trends, challenges, and opportunities in the XR landscape, emphasizing the importance of incorporating environmentally sustainable practices and green skills into training and professional development. The findings from D1.1 are crucial for shaping the strategic direction of subsequent deliverables, D1.2 and D1.3, which will provide frameworks and recommendations to further integrate these essential skills into the sector, thereby aligning XR industry growth with broader sustainability goals.