Retailers’ AR and VR spend to outpace every other industry next year
Retailers are set to spend $1.5 billion (£1.15 billion) on augmented reality (AR) and virtual reality (VR) technology in 2020, more than any other industry.
AR and VR spend across the globe is set to rise whopping 78.5 per cent next year to $18.8 billion, according to new data from the International Data Company (IDC).
The commercial sector will see its combined spending of the market grow from 50 per cent to 68.8 per cent by 2023, with retail predicted to outspend all other commercial categories.
“AR/VR commercial uptake will continue to expand as cost of entry declines and benefits from full deployment become more tangible,” European Industry Solutions’ research analyst Giulia Carosella said.
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“Focus is shifting from talking about technology benefits to showing real and measurable business outcomes, including productivity and efficiency gains, knowledge transfer, employee’s safety, and more engaging customer experiences”.
Though spending on VR solutions will initially outpace spending on AR, strong growth in AR hardware, software and services will see it overtake VR by 2023.
Consumer spending on both AR and VR will be greater than any industry, estimated to be $7 billion (£5.36 billion) next year, and achieve a 39.5 per cent compound annual growth rate.
China is expected to spend $5.8 billion (£4.44 billion) next year, while the US and Western Europe will spend $5.1 billion (£3.91 billion) and $3.3 billion (£2.35 billion) respectively.