Worldwide spending on augmented reality and virtual reality (AR/VR) is forecast to reach $160 billion in 2023, up significantly from the $16.8 billion forecast for 2019. According to the International Data Corporation (IDC) Worldwide Semiannual Augmented and Virtual Reality Spending Guide, the five-year compound annual growth rate (CAGR) for AR/VR spending will be 78.3 percent.

A new study from Juniper Research has found that revenues from VR-specific games will reach $8.2 billion by 2023, rising from an expected $1.2 billion in 2019. It argued that development of smartphone VR content is essential to increase consumer confidence in VR across all platforms, following a disappointing year of hardware sales in 2018.