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RESEARCH, ANALYSIS & TRENDS
Spending on VR & AR expected to reach
globally $18.8 billion next year
Worldwide spending on augmented reality and virtual about technology benefits to showing real and
reality (AR/VR) is forecasted to be $18.8 billion in 2020, measurable business outcomes, including productivity
an increase of 78.5% over the $10.5 billion International and efficiency gains, knowledge transfer, employee's
Data Corporation (IDC) expects will be spent in 2019. safety, and more engaging customer experiences," said
Giulia Carosella, research analyst, European Industry
The latest update to IDC's Worldwide Augmented and Solutions, Customer Insights & Analysis.
Virtual Reality Spending Guide also shows that
worldwide spending on AR/VR products and services will Commercial use cases will account for nearly half of all
continue this strong growth throughout the 2019-2023 AR/VR spending in 2020, led by training ($2.6 billion)
forecast period, achieving a five-year compound annual and industrial maintenance ($914 million) use cases.
growth rate (CAGR) of 77.0%.
Consumer spending will be led by two large use cases:
Worldwide spending on AR/VR solutions will be led by VR games ($3.3 billion) and VR feature viewing ($1.4
the commercial sectors, which will see its combined billion). However, consumer spending will only account
share of overall spending grow from less than 50% in for a little over one third of all AR/VR spending in 2020
2020 to 68.8% in 2023. The commercial industries that with public sector use cases making up the balance.
are expected to spend the most on AR/VR in 2020 are
retail ($1.5 billion) and discrete manufacturing ($1.4 The AR/VR use cases that are forecast to see the
billion). Fifteen industries are forecast to deliver CAGRs fastest growth in spending over the 2019-2023 forecast
of more than 100% over the five-year forecast period, period are lab and field (post secondary) (190.1%
led by securities and investment services (181.4% CAGR), lab and field (K-12) (168.7% CAGR), and
CAGR) and banking (151.9% CAGR). onsite assembly and safety (129.5% CAGR). Seven
other use cases will also have five-year CAGRs greater
Consumer spending on AR/VR will be greater than any the 100%. Training, with a 61.8% CAGR, is forecast to
single enterprise industry ($7.0 billion in 2020) but will become the largest use case in terms of spending in
grow at a much slower pace (39.5% CAGR). Public 2023.
sector spending will maintain a fairly steady share of
overall spending throughout the forecast. Hardware will account for nearly two thirds of all AR/
VR spending throughout the forecast, followed by
"AR/VR commercial uptake will continue to expand as software and services. Services spending will see
cost of entry declines and benefits from full deployment strong CAGRs for systems integration (113.4%),
become more tangible. Focus is shifting from talking consulting services (99.9%), and custom application
4 December 2019 - Augmented Reality (AR) & Virtual Reality (VR) in Marketing