Europe AR/VR spend set to top $10B in 2027
Research company IDC estimated spending on AR/VR wearables in European market will reach $10.5 billion in four years, largely driven by digitalisation efforts across industries and remote collaboration.
The company forecasts AR spending will hit $1.1 billion by the end of this year, while the VR segment will reach $3.4 billion. By 2027, IDC figured spending on AR/VR will grow at a CAGR of 24.9 per cent between 2022 up to the forecast period.
While tough macroeconomic conditions have led European organisations to postpone large AR/VR deployments, research manager at IDC Europe Lubomir Dimitrov said the emphasis on productivity, safety and efficiency across business operations “will continue to intensify interest” in the technology.
Dimitrov added the shift to remote operations also factors in AR/VR investment in enterprises.
The research arm identified the resource sector as a B2B play that will experience the “fastest long-term” and double-digit growth in AR/VR spending throughout 2023, as the technology enables workers to virtually inspect and assess risks during operations.
It noted consumer, retail and manufacturing as segments that will account for 63.7 per cent of total AR/VR spending this year, and named “training, online retail showcasing and industrial maintenance” as the main B2B use case investments.
Collaboration which combines AR/VR with traditional video or call conferences will also be the fastest growing use case by 2027, growing at an 89.2 per cent CAGR from 2022.
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