IDC expects global spending on augmented reality and virtual reality (AR/VR) to reach "nearly" $20.4 billion in 2019-- a 68.8% increase over the $12.1bn of 2018, before achieving a CAGR of 69.6% over the 2017-2022 forecast period.
"Early market developments indicate adoption of AR/VR technologies on a worldwide basis will expand for a decade or longer," the analyst says. "The innovators that serve a broad base of industries support dynamic end user needs through the growing options in hardware and software solutions. We believe services will play a more prominent role in enterprise investments as the market matures."

The commercial sectors lead in global AR/VR solution spending, holding 64.5% share in 2019, a total set to reach 80% in 2022. The industries expected to spend most on AR/VR in 2019 are personal and consumer services ($1.6bn), retail ($1.56bn), and discrete manufacturing ($1.54bn). IDC also lists 10 industries expected to deliver CAGRs of over 100% over the 5-year forecast period, including state/local government (123.7% CAGR), resource industries (120.9% CAGR) and wholesale (120.9% CAGR). Consumer spending on AR/VR remains greater than any single industry ($7.2bn), but such growth takes place at a much slower pace (36.6% CAGR).