European spending on augmented reality (AR) and virtual reality (VR) is estimated to reach $1.1. billion and $3.4 billion respectively in 2023, according to IDC’s Worldwide Augmented and Virtual Reality Spending Guide.
The discrete manufacturing, retail and consumer goods industries will account for 63.7 per cent of total spending in 2023, with many investing to help improve efficiencies, customer experience and training for staff. For example, AR enables users to virtually inspect machinery and environments safely and to predict machinery malfunctions before they occur. Mixed reality technology also allows businesses to provide learning experiences for employees in a safe environment, enhancing the virtual training process.
“As a response to the challenging macroeconomic conditions, many European companies are adopting a more cautious approach to IT investments, pushing back some large AR/VR deployments,” said Lubomir Dimitrov, research manager for IDC Data and Analytics in Europe. “However, the change in priorities, emphasising optimisation of return on investment and productivity and efficiency gains, will continue to intensify interest in AR and VR, propelled by the digital trend of ‘remote everything’ and keeping a strong focus on employee safety.”
Furthermore, AR/VR spending will reach a total of $10.5 billion by 2027, growing at a 24.9 per cent compound annual growth rate between 2022 and 2027.