According to a new report from IDC, worldwide AR and VR market revenue is expected to double or more over the next four years. All spending on AR/VR products and services is expected to rise from $11.4 billion in 2017 to $215 billion in 2021, a CAGR of 113.2%.
The US will be the region that will spend the most on AR/VR in 2017 ($3.2 billion), followed by Asia/Pacific (excluding Japan) at $3 billion, and Western Europe at $2 billion. Interestingly, total spending in Asia Pacific (excluding Japan) will overtake the U.S. within the next two years, until 2019 begins to slow. In 2020 the U.S. will return to the top of the list, marking accelerated growth. Meanwhile, Western Europe is expected to take over Asia Pacific in 2021. The regions with the fastest market growth during the 2016-2021 period are Canada (145.2%), Central and Eastern Europe (133.5%), Western Europe (121.2%) and the United States (120.5%).
Within different regions, the industries driving AR and VR have largely originated in the same sectors, but have evolved very differently. The consumer segment will be the largest source of AR/VR revenue in 2017. In the United States and Western Europe, the second largest source is discrete manufacturing and process manufacturing. In stark contrast, the second largest source in Asia Pacific (excluding Japan) in 2017 was retail and education. The report predicts that the US consumer sector will gradually be replaced by process manufacturing, government, discrete manufacturing, retail, construction, transportation and professional services. In Asia Pacific (excluding Japan) in 2021, the consumer sector will maintain its lead, followed by education, retail, transportation and healthcare. Consumer spending will also dominate the Western European market, while sectors such as discrete manufacturing, retail, and process manufacturing will also see strong growth.
"Consumer, retail and manufacturing will be early leaders in AR and VR investment and adoption. But other sectors, such as government, transportation and education, will be well positioned to take advantage of the transformative capabilities of AR/VR technology," IDC analyst Marcus Torchia said. "With many use cases already emerging in AR and VR environments, we can see that businesses are facing a lot of opportunities to revolutionize the way users interact at work and in their daily lives."
"AR and VR are getting a lot of attention from the commercial space, and we expect this trend to continue to grow," said Tom Mainelli, vice president of Devices and AR/VR at IDC. “When the next generation of hardware begins to emerge, verticals in the industry will be the first to embrace it. They will use cutting-edge software and services to increase worker productivity and safety, while bringing customisation to consumers. , the experience of experience.”
The industry use cases that attract the largest AR/VR investments are also expected to evolve over five years. In 2017, the largest industry use cases will be retail display ($442 million), field assembly and safety ($362 million) and process manufacturing training ($309 million). In 2021, the largest industry use cases are expected to be industrial maintenance ($5.2 billion) and public infrastructure maintenance ($3.6 billion), followed by retail display ($3.2 billion). By contrast, the consumer segment will be dominated by AR and VR gaming, with total spending reaching $9.5 billion in 2021. The fastest growing use cases during the forecast period will be laboratory (166.2% growth rate), therapy and physical rehabilitation (152.0% growth rate) and public infrastructure maintenance (138.4% growth rate).
In 2017 and 2018, spending on VR systems, including headsets, software, consulting services, and systems integration services, is expected to be larger than AR-related spending. This is mainly due to the massive adoption of hardware, games and premium content by consumers. After 2018, AR spending will surge as the industry buys AR software and headsets aggressively. 152.0% growth) and maintenance of public infrastructure (138.4% growth).
Responsible editor: tzh