IDC Report: AR-VR Production Value to reach $17.8 Billion in 2018

According to the latest report released by IDC, the output value of AR and VR will reach US$17.8 billion in 2018, an increase of nearly 95% from the US$9.1 billion in 2017. IDC has just updated the Worldwide Semiannual Augmented and Virtual Reality Spending Guide, which also points out that global AR/VR product and service output will continue to be similar during the 2017-2021 forecast period. The growth rate of the five-year compound annual growth rate will reach 98.8%.

IDM's Vice President of Equipment and AR/VR Division Tom Mainelli said: "With the growth of consumer and business use cases, virtual reality will continue to drive higher levels of output value over the next 12-18 months. From product design to retail , and then employee training, companies that have discovered this technology potential currently have a huge interest in AR/VR. At the same time, the augmented reality market will provide a more modest output value in the short term, and mobile AR on smartphones and tablets will The greatest appeal to consumers, while the head is mainly used in commercial use cases."

The consumer sector will continue to be the source of maximum output value for AR/VR products and services. IDC expects the global output value of the consumer sector to reach US$6.8 billion in 2018. Of these, nearly three quarters come from VR hardware and software, while AR production will be dominated by software consumption. Throughout the forecast period, the game will become the dominant use case for the AR/VR consumer segment. In 2021, the five-year compound annual growth rate of AR/VR consumer output will reach 45.2%, and the total output value will exceed 20 billion US dollars.

In contrast, the business sector will account for more than 60% of AR/VR production in 2018 and grow to over 85% in 2021. Throughout the forecast period, IDC expects that all five business areas will experience a three-digit increase in output value (led by the public sector, and its compound annual growth rate of five years is 156.7%). The largest commercial area in 2018 will be distribution and services ($4.1 billion), led by the retail, transportation and professional services industries. The second largest business area is manufacturing and resources (3.2 billion U.S. dollars), of which the manufacturing, construction, and discrete manufacturing industries have equivalent production values. Retail will become the industry with the highest AR/VR value in 2018, followed by process manufacturing and construction.

Business use cases vary from industry to industry. In the distribution and service industries, retail display and online retail display will become the two largest use cases in 2018, with a total value of more than $950 million. Online retail sales will also experience high-speed output growth, with a five-year compound annual growth rate of 225%. On-site assembly and safety, process manufacturing training, and industrial maintenance will be the largest use cases in the manufacturing and resources industry. In the public domain, infrastructure maintenance and government training will be the two largest use cases in 2018.

Marcus Torchia, Research Director of IDC Consumer Research and Analysis, said: "Business entities are ready for virtual reality for consumer use cases and internal use cases. There are plenty of opportunities to develop commercial-grade hardware and applications that meet the needs of these industries. At the same time, mobile-based AR is likely to gain most of the market attention in the near future, and many companies are already trying to use AR applications and services.Some of them are useful, some are useless, but in the next 12-18 months, we You should see developers start to grasp the potential of AR."

In terms of geographical distribution, the United States will be the region with the largest AR/VR output value ($6.4 billion) in 2018, followed by the Asia Pacific region (excluding Japan, $5.1 billion), then Europe, the Middle East, and Africa ($3 billion. ). During the forecast period, the AR/VR output value in the United States will increase by a certain amount, and IDC expects its 2020 output value to reach its peak value. At the same time, growth in Asia Pacific (excluding Japan) will slow at the end of the forecast period. The five-year compound annual growth rate for the two regions will exceed 100%, while Canada (a compound annual growth rate of 139.9%) and Central and Eastern Europe (a compound annual growth rate of 113.5%) will be the fastest growing regions. Japan is the slowest growing region with a compound annual growth rate of only 36.5%.

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