In just a few years, augmented reality (AR) and virtual reality (VR) became one of the hottest tech trends, with millions of users worldwide.
From social interactions in VR games and photo editing to the enhanced and personalized shopping experience, AR and VR apps have found their use across different markets.
According to data presented by Trading Platforms, global consumer spending on augmented and virtual reality is expected to hit almost $27bn next year, 25% more than in 2022.
AR spending to touch $14bn, VR revenues up by 27% YoY
Virtual reality has been on the verge of becoming mainstream for years. But, after some of the biggest tech players, like Meta, joined the VR game, the industry is getting closer and closer to that moment.
In 2022, consumers worldwide are forecast to spend close to $10bn on VR hardware and software, according to a Statista survey. With the entire market thriving, user spending will jump by 27% to $12.7bn next year. Statista expects VR hardware revenues to hit $9.39bn in 2023, showing a 23% YoY growth. VR software spending is set to jump by 40% to $3.3bn.
The AR market has gone far from Snapchat filters, and Pokemon Go, the most popular examples of this technology, and revenue figures confirm that. Consumer spending on AR software and hardware will hit $11.5bn in 2022 and jump by another 20% to almost $14bn next year.
AR software revenues, the largest revenue stream of the entire market, will grow by 10% YoY to $11.6bn in 2023. On the other hand, AR hardware revenues will more than double, rising from $1.04bn to almost $2.4bn worldwide.
2.2 billion people to use AR and VR technology next year
Statistics show that most AR/VR revenues come from the United States, China, and Japan as the top three markets. In 2022, US consumers are forecast to spend $6.1bn on AR and VR technology, or 22% of the total spending. This figure is expected to jump by 20% to $7.5bn next year.
China, the second largest market, will also witness a 20% growth next year, with AR and VR revenues rising from $4.5 to $5.5bn. Japanese consumers will spend $1.63bn on AR and VR technology in 2023, up from $1.31bn this year.
Besides surging revenues, the entire industry will also witness impressive user growth. Statista expects the whole market to reach over 2.2 billion people next year, or 200 million more than in 2022.