As businesses and consumers alike become increasingly reliant on technology to enhance their daily lives, it’s no surprise that the virtual and augmented reality industry is continuing to grow. In fact, according to IDC’s Worldwide Semiannual Augmented and Virtual Reality Spending Guide, the global spending on these technologies is expected to reach a whopping $72.8 billion by 2024.
At our company, we understand the importance of staying ahead of the curve in this ever-evolving industry. That’s why we’ve delved deep into the data provided by IDC’s Spending Guide to bring you a comprehensive analysis of the trends and projections that can help you make the most of this exciting market.
Here’s what we’ve found:
Consumer Spending is on the Rise
While the adoption of virtual and augmented reality technologies in the consumer space has been slower than in enterprise applications, this is changing rapidly. IDC’s report predicts that consumer spending on these technologies will increase from $7.2 billion in 2019 to $26.5 billion in 2024. This is due in part to the growing popularity of gaming and entertainment experiences that utilize VR and AR technologies.
Enterprise Applications are Driving Growth
The bulk of spending in the VR and AR market is expected to come from enterprise applications, with a projected spend of $46.4 billion by 2024. This is due to the growing use of these technologies in industries such as healthcare, retail, and manufacturing, where they can be used to improve employee training, enhance customer experiences, and streamline operations.
Hardware Remains a Key Driver of Spending
While software and services are expected to account for the majority of spending in the VR and AR market, hardware will remain a key driver of growth. In fact, spending on AR and VR hardware is expected to increase from $11.6 billion in 2019 to $31.2 billion in 2024. This is due in part to the development of more affordable, consumer-friendly hardware such as standalone VR headsets and AR glasses.
Asia-Pacific is the Fastest-Growing Region
While North America is currently the largest market for VR and AR spending, the Asia-Pacific region is expected to experience the highest growth rate, with a projected CAGR of 69.4% between 2019 and 2024. This is due to the increasing adoption of these technologies in countries such as China and Japan, as well as the development of supportive government policies.
COVID-19 is Accelerating Adoption
Finally, the COVID-19 pandemic has had a significant impact on the VR and AR market. With many businesses forced to operate remotely, these technologies have become essential for enabling virtual collaboration, training, and events. As a result, IDC’s report predicts that the pandemic will accelerate adoption of these technologies and drive increased spending in the coming years.
At our company, we are excited to be at the forefront of this exciting industry. By staying up-to-date with the latest trends and projections, we can help our clients make informed decisions about how to leverage these technologies to drive growth and stay ahead of the competition.