VR, AR, wearables and good residence know-how are mainstream at the moment, analysis says
Enlarge / The VR and AR categories are expected to grow the fastest. It wasn’t long ago that virtual reality (VR) and augmented reality (AR) headsets, smartwatches, and voice-controlled houses were the fantasies of books and films. Today, VR, AR, wearables and smart home technology have passed the early adoption phase and are all staples of the “mass market,” according to a study published today by the International Data Corporation (IDC). The global research firm predicted that the combined market will hit $ 369.6 billion by the end of 2021 and grow to $ 524.9 billion in 2025.
IDC expects AR and VR combined to show the strongest growth of the three categories, thanks to both corporate and residential customers. The latter is particularly interested in “robust gaming solutions”, according to IDC. Businesses make the bulk of AR spending today, but IDC expects the market for AR headsets for the general public will grow. It forecast an average annual growth rate of 67.9 percent from 2020 to 2025 for AR and VR combined, which is more than ten times that of its closest competitor, Smart Home Tech (10.1 percent growth rate).Enlarge / IDC expects smart home technology to have the highest market value.
However, smart home technology will be the most valuable market with a forecast value of over $ 400.3 billion in 2025. The biggest sellers are reportedly to be smart TVs, streaming players and other “connected entertainment devices”, which are projected to represent $ 229 billion in 2025.
According to Adam Wright, senior research analyst on IDC’s Smart Home and Office Devices team, smart home and office technologies are driven more by services than hardware features and reliability.
“The breadth, depth, uniqueness and quality of records will increasingly determine the value potential of a smart home provider, and as device margins come under pressure, the role of devices in service delivery will largely be left to vehicles, “Wright said in a statement on the today’s announcement.
Earwear and smartwatches are expected to be the drivers of the wearables market during these five years. IDC expects the wearables space to have the slowest growth rate among the three categories, although it will be rated higher than the AR and VR markets in both 2021 and 2025.
Offer picture by Oscar Wong / Getty