Business use cases will account for nearly half of all virtual and augmented reality (VR/AR) spending in 2020, according to International Data Corporation (IDC).
➨ Business spending will increase from less than 50% in 2020 to 68.8% in 2023
➨ Retail and discrete manufacturing are expected to spend the most on VR and AR in 2020
➨ Fifteen industries are forecast to deliver compound annual growth rates of more than 100% over the five-year forecast period
Market intelligence provider IDC’s latest spending guide on VR and AR predicts that business spending will increase from less than 50% in 2020 to 68.8% in 2023.
Worldwide, $18.8 billion will be invested in 2020, an increase of 78.5% over the $10.5 billion IDC expects will be spent this year.
The industries expected to spend the most on VR and AR in 2020 are retail ($1.5 billion) and discrete manufacturing ($1.4 billion).
Fifteen industries are forecast to deliver compound annual growth rates (CAGRs) of more than 100% over the five-year forecast period to 2023, led by securities and investment services (181.4% CAGR) and banking (151.9% CAGR).
Consumer spending will be greater than any single enterprise industry ($7 billion in 2020) but will grow at a much slower pace (39.5% CAGR). Public sector spending will maintain a fairly steady share of overall spending throughout the forecast, according to IDC.
Giulia Carosella, research analyst at IDC, commented: “AR/VR commercial uptake will continue to expand as cost of entry declines and benefits from full deployment become more tangible. Focus is shifting from talking about technology benefits to showing real and measurable business outcomes, including productivity and efficiency gains, knowledge transfer, employee’s safety, and more engaging customer experiences.”
Of the business use cases accounting for nearly half of all VR and AR spending in 2020, training ($2.6 billion) and industrial maintenance ($914 million) will lead the way.
Consumer spending will be led by two large use cases: VR games ($3.3 billion) and VR feature viewing ($1.4 billion). But this will only account for a little over one third of all VR and AR spending in 2020, with public sector use cases making up the balance.
IDC reported in July that VR and AR headsets returned to growth in Q1 2019 after a year of decline.