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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
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