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31 May 2018

IDC Canada Projects C$602 million in Spending on Augmented and Virtual Reality across Hardware, Software and Services in Canada By the End of 2018

TORONTO, ON., May 31, 2018 — International Data Corporation (IDC) Canada today announced the 2017H2 release of IDC's Worldwide Semiannual Augmented and Virtual Reality Spending Guide forecasting Canada's hardware, software and services spending on these two technologies combined will total C$602 million by 2018 increasing to C$8.0 billion by 2022 with a five-year CAGR of 90%.

"With its vast array of solutions across both the commercial and consumer space, AR/VR is changing the status quo from product design to retail sales to employee training." said Emily Taylor, Consumer & Mobility Senior Analyst at IDC Canada.

Over the next five years, industry spend for Virtual Reality will be led by consumer, healthcare, and retail, powering immersive and realistic images, sounds, and experiences that simulate physical presence in a virtual environment. The consumer segment leads Virtual Reality spend throughout the forecast with hardware purchases and gaming use cases.

For Augmented Reality, 2018 will be an experimental year for Canadian organizations, as use cases and ROI continue to be determined. However, the more interesting piece for AR solutions is the long-term forecast by industry, where IDC Canada sees spending growth for the top three industries in industrial settings, including process manufacturing, transportation, and discrete manufacturing. Though mobile AR (AR on traditional mobile devices such as smartphones and tablets) will play a role in helping the market evolve, for use cases that require a more immersive, hands-free experience, using a headset will optimize productivity: ever-present; no buttons or touchscreens; controlled by voice, hand gestures, or eye movements.

In October 2017 when IDC Canada asked Canadian enterprises which key attributes were most important when selecting AR or VR technologies for use, the top three responses were price, suitable use cases, and ease of use (Source: IDC Canada BITAP n4 2017). This highlights that in addition to prices (in particular for AR headsets) that will need to be justified to show value, Canadian enterprises are mindful of how suitable these new technologies will be to their organization. They may see potential but tying the technology back to their bottom line will be essential for uptake.

"Augmented Reality has more potential to drive higher spending in the longer term than Virtual Reality, but both ecosystems are evolving very quickly and it is important that Canadian organizations keep both AR and VR in mind as their technology-centric strategies evolve over the next few years" adds Yash Ahuja, Measurement & Forecasting Senior Analyst at IDC Canada.

For more information about this IDC Spending Guide or to arrange a one-on-one interview with Emily Taylor or Yash Ahuja, please contact Cristina Santander at askidc@idccanada.com.

About IDC Spending Guides

IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data, and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com or follow on Twitter at @IDC and LinkedIn. To learn more about IDC Canada, please visit www.idc.com/ca or follow on Twitter at @ idccanada and LinkedIn.

Coverage

Contact
For more information, contact:

Yash Ahuja
yahuja@idc.com
416-673-2207

Emily Taylor
etaylor@idc.com
416-673-2213

AskIDC
askidc@idccanada.com
416-673-2204

Cristina Santander
csantander@idc.com
416-673-2235