AR VR spending to reach $13.8B in 2022, ~32% growth - Seeking Alpha

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Spending connected AR and VR is expected to scope $13.8B this twelvemonth and to $50.9B successful 2026, according to IDC reports. The five-year compound yearly maturation complaint (CAGR) volition beryllium 32.3%.

VR to instrumentality up 70% of AR/VR spending successful 2022-2026 period.

Commercial usage cases- AR investments for concern attraction and grooming to instrumentality up astir 1 3rd of each AR-related spending. VR investments for grooming and collaboration to seizure astir 44% of the marketplace by 2026.

Whereas, consumer usage cases for VR gaming and AR gaming to basal astatine 25% of each AR/VR spending.

Fastest CAGR maturation implicit 5 years: exigency effect 82.9%, augmented world games 57.8%, interior videography 47.8%, and collaboration 42.7%. 16 different usage cases expected to turn 30% oregon more.

Large standard spending expected from discrete manufacturing, healthcare providers, nonrecreational services, education, and retail. Strongest spending maturation expected healthcare, telecommunications, state/local government, and utilities.

US and China to beryllium the apical 2 contenders for AR/VR spending, with China spending expected to pursuit 42.2% CAGR.

Technology-wise: Standalone and tethered head-mounted displays oregon HMDs to instrumentality up one-third of AV/VR spending, CAGR of 59.5% and 57.9% for big devices and tethered HMDs; beardown maturation of 41.3% seen for software, expected to instrumentality up a 4th of full spending.

"IDC introduced 34 further commercialized usage cases to the Worldwide AR/VR Spending Guide successful 2022, including minimally integrated, highly mobile, and distant usage cases arsenic good arsenic emerging virtual collaboration. Enterprises deploy investments successful AR and VR successful a assortment of ways including headset-centric and idiosyncratic device-centric approaches arsenic good arsenic connected premise and via unreality services supported implementations. This flexibility is allowing enterprises to recognize affirmative returns and abbreviated payback periods connected their investments." said Marcus Torchia, probe VP, Data & Analytics.

Tickers to watch: Meta Platforms (META); Sony (SONY); Alphabet (GOOG) (GOOGL); Microsoft (MSFT); Apple (AAPL); Nvidia (NVDA); Qualcomm (QCOM)