IDC Forecasts Explosive Growth for the Mixed Reality Sector just as Apple is set to Storm the Market
- MIchelle Mckoy
- MIxed Reality
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During this week’s Financial Conference Call, Apple’s CEO Tim Cook stated that Apple believes that “AR has broad mainstream applicability across education, entertainment, interactive gaming, enterprise and categories we probably haven’t even thought of. With hundreds of million people actively using iPhones and iPads today, iOS will become the world’s biggest augmented reality platform [in the world] as soon as iOS 11 ships.” Just as Apple prepares to leap into a leadership position on augmented reality, a newly published IDC report on this subject indicates that the market is ready to explode on several fronts.
According to IDC, “Worldwide revenues for the augmented reality and virtual reality (AR/VR) market are forecast to increase by 100% or more over each of the next four years, according to the latest update to the Worldwide Semiannual Augmented and Virtual Reality Spending Guide from the International Data Corporation (IDC).
Total spending on AR/VR products and services is expected to soar from $11.4 billion in 2017 to nearly $215 billion 2021, achieving a compound annual growth rate (CAGR) of 113.2% along the way.
The consumer segment will be the largest source of AR/VR revenues in each region in 2017. In the United States and Western Europe, the next largest segments are discrete manufacturing and process manufacturing. In contrast, the next largest segments in Asia/Pacific in 2017 are retail and education. Over the course of the forecast, the consumer segment in the U.S. will be overtaken by process manufacturing, government, discrete manufacturing, retail, construction, transportation, and professional services.
The consumer, retail, and manufacturing segments will be the early leaders in AR & VR investment and adoption. However, as we see in the regions, other segments like government, transportation, and education will utilize the transformative capabilities of these technologies,’ said Marcus Torchia, research director of IDC Customer Insights & Analysis. ‘With use cases that span both AR & VR environments, we see a significant opportunity for companies to re-cast how users interact in business processes and everyday tasks.”
Tom Mainelli, program vice president, Devices and AR/VR at IDC added that “Augmented and virtual reality are gaining traction in commercial settings and we expect this trend will continue to accelerate. As next-generation hardware begins to appear, industry verticals will be among the first to embrace it. They will be utilizing cutting-edge software and services to do everything from increase worker productivity and safety to entice customers with customized, jaw-dropping experiences.”