Connect with us

Trends

AR/VR spending in Asia/Pacific to reach $14.8 billion

According to the latest release of IDC’s Worldwide Augmented and Virtual Reality Spending Guide, Asia/Pacific* spending on AR/VR solutions is expected to capture a net spending of $14.8 Billion by 2026, growing at a CAGR of 40.1% (2021-2026). A major chunk of VR spending came from the consumer industry, which is expected to showcase a similar trend over the forecast period. However, growing opportunities for commercial use cases, such as training, collaboration, and metaverse-related activities, are expected to offer promising growth avenues.

In the past, troubleshooting and designing needs of enterprises have been met by AR solutions which will continue over the forecast period. Nevertheless, new devices launched by several vendors in the latter years of the forecast are expected to cater to the consumer market with newfound opportunities for entertainment and personal productivity needs.

“AR/VR technology is set to transform how we live, work and play. The technology has opened new opportunities for gaming, entertainment, consumer, healthcare, manufacturing, education and many more. As the technology gets more perfected and the metaverse is more embedded in the future of work, spending on AR/VR will see strong growth rates of up to 40% in the next few years,” says Dr. Lily Phan, Future of Work, Research Director, IDC Asia/Pacific.

Discrete Manufacturing, Education, Professional Services, Healthcare Provider, and Personal and Consumer Services captured more than 66% of total spending in 2022 among the 19 commercial industries covered by IDC. Training emerged as the primary use case for Discrete Manufacturing, Healthcare, and Personal and Consumer Services in 2022. Professional Services showcased the highest CAGR of 41.5% owing to the rising need to engage in more effective collaboration, enabling companywide sharing and interaction. Healthcare also showcased a similar trend for collaboration use case and is expected to result in spending of $44.7 Million by 2026. 360-degree Educational Video Viewing (Post-Secondary) emerged as the most promising use case over the forecast period, capturing a CAGR of 48.1%. AR/VR technology will offer an increased immersive learning experience by enabling information virtualization, thereby developing innovation, problem-solving, and analytical thinking skills.

The advent of the metaverse offers an impetus to the AR/VR market. AR/VR technology, along with AI, cloud, and blockchain, will be used to impact six major markets namely entertainment, social, education, finance, and work. As the metaverse will heavily rely on AR/VR solutions owing to interactive and immersive user experience, metaverse gateway, applications, and accessories should be devised around AR/VR platforms. Technological investments made by Meta in recent years in AR/VR technology and the lack of competitive rivalry are expected to promote other companies such as Sony, Apple, and Pico to enter the AR/VR market in the latter years of the forecast period, thus offering promising growth opportunities for new players and diverse options for consumers.

“Web3 and metaverse are acting as major drivers which in turn are driving new business priorities,” says Abhik Sarkar, Market Analyst at IDC Asia/Pacific IT Spending Guides, Customer Insights & Analysis. “The entertainment industry will likely be disrupted the most as virtual entertainment becomes more polarized. The metaverse development will also help improve marketing and digital economy as eCommerce will continue to showcase accelerated growth due to immersive and comprehensive customer experience.” Sarkar adds.

Services captured the highest spending share in 2022 at 34.4% followed closely by hardware, and software. However, the hardware segment is expected to dominate the market by 2026 and can capture total spending of $8.2 billion. The segment is also expected to grow at a CAGR of 44.8% (2021-2026). VR hardware has higher penetration in the market than software and services, and this trend is expected to showcase over the forecast period. The consumer sector captured the highest revenue share in 2022. The commercial sector captures the highest growth rate as enterprise-level investments will increase by 2026.

The IDC Worldwide Augmented Reality and Virtual Reality Spending Guide provides guidance on the expected technology opportunity around this market at a regional level and a total worldwide level. Segmented by 20 industries, 47 use cases, 12 technologies, and 9 geographic regions, this guide provides IT vendors with insights into both large and rapidly growing segments of the AR/VR market and how the market will develop over the coming years. BCS Bureau

Copyright © 2023.Broadcast and Cablesat