The recent forecast from International Data Corp (IDC) predicts that global spending on augmented reality and virtual reality will double every year through 2021. The report also says that the total spending on products and services in the category will increase and touch $215 billion in 2021 from the current figure of $11.4 billion and that the compound annual growth rate (CAGR) will be 113.2% for the forecast period. In 2017, US is expected to lead spending $3.2 billion in the category followed by APEJ (Asia-Pacific excluding Japan) at $3 billion and Western Europe at $2 billion.
It is also predicted by the IDC that APEJ will replace the US at the top for some time but will eventually slow in 2019 and hand over the top spot in 2020. Western Europe is also predicted to be seen moving into the second spot in the following year.
Canada is expected to experience the fastest growth with 145.2 % CAGR over the stipulated forecast period. Central and Eastern Europe at 133.5% followed by Western Europe at 121.2% and the U.S. at 120.5% are considered to the other leaders in growth terms. To quote a news release, “Within the regions, the industry segments driving AR/VR spending start from roughly the same place, but then evolve quite differently over time.”
It is also said that the consumer segment would happen to be the largest source of AR/VR revenues in each region in the present year of 2018. Discrete manufacturing and process manufacturing are set to become the next largest segments in both Western Europe and the United States whereas, in the APEJ region, retail and education have the next largest segments. With time in the stipulated forecast zone, the US consumer segment is poised to be superseded by discrete manufacturing, process manufacturing, government, transportation, retail, construction, and professional services.
It is also predicted that in 2021, the consumer segment will continue to reign as the largest area of spending in the APEJ region, followed by education, retail, transportation, and healthcare. Consumer spending is also predicted to lead the way in Western European region followed by steady growth in retail and process manufacturing by end of forecast time.
According to Marcus Torchia, research director of IDC Customer Insights & Analysis, the consumer, retail and manufacturing segments will be the early pioneers of AR& VR investment and adoption. He holds the opinion that in the same regions, other segments like transportation, government, education would utilize the transformative capabilities of AR& VR.
He also commented that with use cases spanning both AR& VR environments, significant opportunities can be seen for companies to recast the way users interact in business processes and daily tasks. It is forecasted that VR spending will lead the way in both 2017 and 2018 based on current consumer trends. However, post-2018, according to IDC predictions, AR spending will take the lead as companies buy more software and gain viewers.
It is said that in the present year, retail will be the largest industry to use case by spending $442 million. Industrial maintenance will be the largest use case with $5.2 billion by the end of the forecast period, which would be followed by infrastructure maintenance at $3.6 billion and retail at $3.2 billion. Consumer spending will primarily be led by games all through the forecast period hitting a total of $9.5 billion by the year 2021.
This blog has been written with the pure intention of sharing knowledge and information. The financial figures and forecast have been collected from various sources and AVASOFT is not responsible for the authenticity of the same.
