Worldwide spending on augmented reality and virtual reality (AR / VR) is forecast to grow from just over $12 billion in 2020 to $72.8 billion in 2024, according to IDC report.
The five-year compound annual growth rate (CAGR) for AR / VR spending will be 54 percent, IDC’s Worldwide Augmented and Virtual Reality Spending Guide indicated.
Training is a leading use case for augmented / virtual reality adoption, as enterprises continue to focus on knowledge capture and transfer initiatives.
“Managing face-to-face interactions and touch points in and out of the physical workplace are just as essential; ranging from virtual property tours to retail showcasing, organizations are adopting AR/VR to create a personalized, immersive customer experience,” Stacey Soohoo, research manager, Customer Insights & Analysis at IDC, said.
Investment in AR / VR commercial use cases in 2024
Training $4.1 billion
Industrial maintenance $4.1 billion
Retail showcasing $2.7 billion
VR gaming, VR video/feature viewing, and AR gaming $17.6 billion
Main industries making AR / VR investment in 2024
Discrete manufacturing $5.9 billion
Process manufacturing $5.1 billion
“Organizations are leveraging AR / VR technologies to capture and transfer knowledge between experienced and new employees, enhance and streamline field operations, and increase collaboration among frontline workers,” Tom Mainelli, group vice president, Devices and Consumer Research at IDC, said.
From a technology perspective, host devices and viewers will account for around two thirds of all AR/VR spending by 2024, declining in share as software and services gain momentum. Software will account for almost a quarter of all spending while consulting services and systems integration services will see strong growth with five-year CAGRs of 77.3 percent and 90.7 percent.