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IDC: 2018 Global AR / VR spending will reach 17.8 billion US dollars, rapid growth in the commercial area

Dec 11, 2017

IDC: 2018 Global AR / VR spending will reach 17.8 billion US dollars, rapid growth in the commercial area

According to International Data Corporation (IDC) projections, global spending on augmented reality and virtual reality (AR / VR) will reach $ 17.8 billion in 2018, an increase of almost 95% from the $ 9.1 billion this year. Recent updates to the IDC Global Half-Year AR and Virtual Reality Expenditure Guide show that global spending on AR / VR products and services will continue to grow at similar rates for the rest of 2017-2021, with a five-year compound annual growth The rate reached 98.8%.

"Virtual reality will continue to drive growth in consumer spending over the next 12-18 months, as consumers and business use cases have gained momentum. Currently, the huge demand from the company, from product design to retail sales, to staff training, has a huge "In the meantime, the AR market will bring more modest spending in the short term - mobile devices on smartphones and tablets may be tempted," said Tom Mainelli, vice president of IDC devices and AR / VR projects. Consumers are paying more attention, while head mounted displays are going to be sold mainly to commercial use cases. "


The consumer area will remain the largest single source of consumer spending on AR / VR products and services and global spending is projected to reach $ 6.8 billion by 2018. Nearly three-quarters of this will be spent on virtual reality hardware and software, while AR spending will dominate software purchases. Throughout the forecast period, the game will be the primary consumer AR / VR use case. The five-year CAGR of consumer AR / VR spending is 45.2%, and by 2021 total spending will exceed $ 20 billion.


By comparison, business will account for more than 60% of AR / VR spending by 2018 and by 2021 this figure will increase to more than 85% of the global total. The five business sectors are expected to experience triple-digit spending growth throughout the forecast, with a five-year CAGR of 156.7% led by the public domain. The largest commercial area in 2018 will be distribution and services ($ 4.1 billion), dominated by the retail, transportation and professional services industries. The second largest area will be manufacturing and resources (3.2 billion U.S. dollars), balancing expenditures in manufacturing, construction and discrete manufacturing. Retail will be the largest consumer of AR / VR in 2018, followed by manufacturing and construction.


Commercial use cases will vary by sector and industry. In the area of distribution and services, retail display and online retailing will be the two largest use cases, and will cost more than $ 950 million in 2018. Online retailing will also experience unusual consumption growth, with a five-year CAGR of 225%. On-site assembly and safe production, process manufacturing training and industrial maintenance will be the largest use case in the manufacturing and resource industries. In the public domain, infrastructure maintenance and government training will be the two largest use cases in 2018.


"Commercial entity is ready to accept virtual reality for customers and internal use cases." IDC's customer insight and analysis Marcus Torchia, research director, he said, "There are many opportunities to develop commercial-grade hardware and applications to meet the needs of these industries at the same time, is likely to get on the phone most of the AR in the short term concern, many companies are already experimenting with AR applications and services. Some of these will be useful, but many are in vain, but in the next 12 In 18 months, we should start to see the developer's potential to get started with AR. "


Geographically, the United States will be the largest AR / VR spending ($ 6.4 billion) in 2018, followed by Asia / Pacific (excluding Japan) ($ 5.1 billion) and Europe, the Middle East and Africa ($ 3 billion ). The United States will experience some accelerated growth during the forecast period and is expected to peak in 2020. Meanwhile, Asia Pacific excluding Japan will see its spending growth slow down at the end of the forecast. In both regions, the five-year compound annual growth rate will exceed 100%, followed by Canada (CAGR 139.9%) and Central and Eastern Europe (CAGR 113.5%), making it the fastest-growing region. The slowest area in Asia will be Japan, where the compound annual growth rate is only 36.5%.


The Global Semi-Annual AR and VR Expenditure Guide explores the opportunities for AR / VR and provides insight into this fast-growing market and how the market will develop in the next five years. Revenue data is available for 8 regions, 12 industries, 26 use cases and 11 technology categories. Unlike other studies in the industry, this comprehensive expenditure guide is intended to help IT decision makers gain a clear understanding of the specific scope and direction of current and future virtual reality / virtual reality spending.