Spending on augmented reality and virtual reality (AR/ VR) products and services is forecast to reach $27 billion (roughly Rs. 1.81 lakh crores) in 2018, a 92 per cent increase year over year, according to a new update from the International Data Corporation (IDC).
Worldwide spending on AR/VR is likely to achieve a five-year compound annual growth rate (CAGR) of 71.6 percent over the 2017-2022 forecast period, showed IDC's Worldwide Semiannual Augmented and Virtual Reality Spending Guide update on Thursday.
"Commercial interest in both augmented and virtual reality continues to accelerate as new hardware ships, improved software appears, and more use cases evolve," said Tom Mainelli, Vice President of Devices and AR/VR at IDC.
The consumer industry is likely to maintain its position as the largest source of spending for AR/VR products and services over the course of the forecast period, reaching $53 billion (roughly Rs. 3.6 lakh crores) by 2022.
Virtual reality gaming continues to be the dominant AR/V R use case in 2018 with spend expected to reach $7 billion (roughly Rs. 47,000 crores), the report said.
New use cases for 2018 include public infrastructure maintenance, as well as 360 degree educational video viewing, it said.