BEIJING (PingWest) — Worldwide spending on augmented reality and virtual reality (AR/VR) is expected to be $18.8 billion in 2020, an increase of 78.5% over the $10.5 billion International Data Corporation (IDC) expects will be spent in 2019. The latest update to IDC's Worldwide Augmented and Virtual Reality Spending Guide also shows that worldwide spending on AR/VR products and services will continue this strong growth throughout the 2019-2023 forecast period, achieving a five-year compound annual growth rate (CAGR) of 77.0%.
Worldwide spending on AR/VR solutions will be led by the commercial sectors, which will see its combined share of overall spending grow from less than 50% in 2020 to 68.8% in 2023. The commercial industries that are expected to spend the most on AR/VR in 2020 are retail ($1.5 billion) and discrete manufacturing ($1.4 billion). Fifteen industries are forecast to deliver CAGRs of more than 100% over the five-year forecast period, led by securities and investment services (181.4% CAGR) and banking (151.9% CAGR). Consumer spending on AR/VR will be greater than any single enterprise industry ($7.0 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.