Worldwide spending on augmented reality and virtual reality (AR/VR) is forecast to reach $13.8 billion this year and grow to $50.9 billion in 2026.
The spending guide, released by the International Data Corporation (IDC) Worldwide Augmented and Virtual Reality Spending Guide, suggested that the spending will be almost evenly split between consumer and commercial applications with virtual reality to account for more than 70% of all AR/VR spending throughout the 2022-2026 forecast.
From a technology perspective, standalone and tethered head-mounted displays (HMDs) will account for more than one third of all AV/VR spending throughout the forecast, followed by software, which will grow to more than a quarter of all spending by the end of the forecast.
Host devices and tethered HMDs will see the fastest spending growth with five-year CAGRs of 59.5% and 57.9%, respectively.
Software will also experience strong growth with a compound annual growth rate of 41.3%.
On a geographic basis, the United States will deliver the largest AR/VR spending totals, accounting for more than one third of the market throughout the forecast.
Second largest region will be China which is estimated to grow up to nearly a quarter of the overall market in 2026 with a five-year CAGR of 42.2%.
“The AR/VR market has been taking slow but sure steps in recent years and is poised to take longer strides in the years to come,” said Ramon T. Llamas, research director, Mobile Devices and AR/VR at IDC.
“Recently announced and upcoming hardware from major brands showcase clear improvement from first-generation devices. The deeper proliferation into current use cases and the addition of new ones highlight the versatility that AR/VR brings. And along with these is a whole host of services to help make them happen.
The result: a maturing market ready to thrive for consumers and commercial users alike.”
