AR/VR technologies have strategic importance for business
Augmented and virtual reality technologies help businesses increase efficiency by providing fast remote support
(photo: CC0 Public Domain)
European spending on augmented and virtual reality (AR/VR) technologies will reach USD 1.1 billion and USD 3.4 billion respectively in 2023, according to a forecast by IDC. Over the next five years, this market will grow by an average of 24.9%, and by 2027 its total volume should reach 10.5 billion dollars.
Despite the downward revision of the AR/VR technology spending estimate in Europe due to high inflation and other macroeconomic factors, the market in question is expected to grow by 32% this year. According to IDC, augmented and virtual reality technologies play a strategic role in supporting organizations’ business goals.
In response to the difficult macroeconomic conditions, many European companies have become more cautious about IT investments and postponed some large AR/VR implementation projects.
“However, shifting priorities with an emphasis on optimizing ROI and increasing productivity and efficiency will continue to drive interest in AR and VR. This is facilitated by the digital trend for “everything remote” and keeping employees’ increased attention to safety”, commented the analyst Lyubomir Dimitrov.
IDC expects the largest share of AR/VR spending in Europe – almost 64% of the total – this year to be in the consumer, retail and discrete manufacturing sectors. In the corporate (B2B) sector, the highest growth rates, which will remain in double digits throughout the forecast period, are expected in resource-extracting industries.
Analysts note the importance of augmented and virtual reality technologies and emphasize that they help businesses increase efficiency by providing rapid remote support and problem solving in the event of equipment failure.
AR/VR can also increase productivity by empowering people and improve safety by replacing often risky on-site training with virtual training. In the mining industry, safety is critical, and there AR technology allows experts to virtually inspect equipment and the environment, providing a detailed and accurate view of hazardous areas without risk to operators.
While IDC gives an upbeat forecast for AR/VR, analysts at TrendForce expect a double-digit decline in global shipments of augmented and virtual reality headsets this year. The market volume is estimated to be around 7.45 million units, down 18.2% from 2022.