A report published by the International Data Corporation (IDC) claims that market spending on Augmented Reality (AR) and Virtual Reality (VR) is going to be over $65.21 billion by 2023. The figure which the report states are way more than the forecast of spending $6.53 billion dollars in the market this year.
According to the report, between 2018 and 2023, the compound annual growth rate (CAGR) of the amount spent in the VR/AR sector will exceed 84%. This is much higher than CAGR of the global market reported to be 78.3%.
Speaking of commercial applications of AR/VR, the three fields where they are applied include training, retail showcasing, and industrial maintenance. Consumer spending, on the other hand, has VR games, AR games, and VR videos taking up the top three spot, with the spending volume scaling up to $9.59 billion by 2023.
It says that China will see the largest AR/VR spending totals throughout the forecast, followed by the United States. The two countries will account for nearly three-quarters of all spending worldwide by 2023. Also, the report says that AR software is projected to be the second fastest growing category, which will allow it to overtake VR software spending by the year 2022.
The report also says that the AR/VR market will witness stellar growth globally. This is said to be because of the booming gaming industry as well as the rising need for head-mounted displays. According to a report from MRFR, there will be 73.3% CAGR in the AR and VR market between 2018 and 2025.
It also predicts that the AR/VR market will grow rapidly thanks to a massive wave of demand from multiple sectors. This traction will be from life & sciences, gaming, e-commerce, healthcare, education, entertainment, and retail.
It is expected that the verticals of e-commerce and retail will push the AR & VR market substantially and this will be as a result of the rising competition among industry giants. AR & VR technology is currently being used by e-commerce companies such as Amazon and Flipkart to revolutionize the online shopping landscape. This is being done by providing a virtual reality shopping experience.
Even more, thanks to the prompt developments witnessed by the 5G technology, when the technology is integrated into AR and VR tech, it will definitely give the market a boost. AR and VR have also been adopted by many organizations in a bid to enhance the consumer experience of their products and services.