According to the report published by the International Data Corporation (IDC), China’s market spending on augmented reality and virtual reality (VR/AR) is forecast to exceed $65.21 billion in 2023. The amount mentioned in the report is far beyond the forecast of spending $6.53 billion dollars of the market spending in the year 2019.
As per the report, between the years 2018 and 2023, the compound annual growth rate (CAGR) of the spending in the VR/AR sector will reach 84.6 percent, which is higher than the 78.3 percent CAGR of the global market.
In terms of commercial applications of AR/VR, the three fields include training, retail showcasing, and industrial maintenance. In terms of consumer spending, VR games, AR games, and VR videos take up the top three spot, with the spending volume scaling up to $9.59 billion by 2023.
It says that China will see the largest AR/VR spending totals throughout the forecast, followed by the United States. The two countries will account for nearly three-quarters of all spending worldwide by 2023. The report also adds that AR software will be the second fastest growing category, enabling it to overtake VR software spending by 2022.
Globally, the AR/VR market is projected to witness stellar growth because of the booming gaming industry as well as the rising need for head-mounted displays. A report from MRFR suggests 73.3% CAGR in the augmented reality and virtual reality (AR/VR) market between 2018 and 2025.
The AR/VR market is projected to gain traction mainly due to a massive wave of demand from multiple sectors. Healthcare, life & sciences, education, gaming, entertainment, e-commerce, and retail are fueling significant demand for this technology.
The verticals of e-commerce and retail are expected to push the AR & VR market substantially due to rising competition among industry giants. E-commerce companies such as Amazon and Flipkart are using AR & VR technology to revolutionize the online shopping landscape by providing a virtual reality shopping experience.
Furthermore, with prompt developments witnessed by the 5G technology, integration of the same in the augmented and virtual reality technology is likely to push the market. Many organizations are adopting augmented reality and virtual reality technology to enhance the consumer experience of their products and services.
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