China’s market spending on augmented reality and virtual reality (VR/AR) will exceed $65.21 billion in 2023, according to the recent report published by the International Data Corporation (IDC).
This is a huge jump from the country’s forecasted 2019 market spending on AR/VR tech, which is $6.53 billion dollars only.
From 2018 to 2023, the compound annual growth rate (CAGR) of the spending in the AR/VR sector in China is 84.6% — higher than the 78.3% CAGR of the global market. China will see the largest AR/VR spending followed by the United States. Together, the two countries will account for three-quarters of global spending by 2023.
This increase in global spending is mainly a result of the strong traction and massive wave of demand from multiple sectors.
According to IDC, the top three commercial applications of AR/VR are for employee training, industrial maintenance, and retail.
ECommerce and retail are pushing the AR/VR market spending upwards due to the rising competition. It is a must for all retail businesses to use AR & VR technology now because the retail giants have revolutionized online shopping using virtual reality technology.
The education and healthcare industry are fueling significant demand for this technology as well.
In addition, consumers demand more VR games, AR games, and VR videos. Consumer spending on gaming and entertainment will scale up to $9.59 billion by 2023, according to the IDC.
The AR/VR market’s stellar growth is also attributed to the increasing demand of head-mounted displays and VR headsets.
The arrival of 5G technology is another reason for the increase in market spending. We recently wrote why and how 5G connectivity will unleash VR & AR’s potential. Read it here.
Many businesses and organizations are adopting virtual and augmented reality technologies to enhance the customer experience of their products and services. VIZ360 can help you get started with this. Contact us to schedule a consultation. No worries, it’s FREE, non-committal meeting.