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Virtual Reality Business Spending to Exceed £3 Billion in 2023

8th September 2021

Virtual Reality Spending to Exceed £3 Billion in 2023

Virtual reality (VR) is on the rise. But it’s not just a shift for the gaming industry. Beyond making games more immersive, virtual reality is finding its place in a range of business applications. As a result, business spending on the technology is rising at some speed.

In this post, we’ll take a closer look at the statistics, how VR is used for business, and how your organisation can get on board.

Virtual Reality Business Spending to Exceed £3 Billion in 2023

VR expected to skyrocket

Go back just a few years to 2018, and annual VR spending was around $829 million (£600 million), according to ARtillery Intelligence. Based on their latest figures, however, it’s set to rise to a whopping $4.26 billion (£3.1 billion) by 2023.

That’s just a fraction of its overall annual value, which is expected to surpass $24.5 billion (£18 billion) in 2024. As you might expect, this is down to the inclusion of non-business spending – in other words, gaming and entertainment.

However, this is still a huge rise for business use specifically. Why? It’s down to a much wider range of uses being discovered – and capitalised on by savvy companies.

How is VR used for business?

In their 2020 Augmented and Virtual Reality Survey, Perkins Coie outlined the top sectors that have been disrupted by AR (augmented reality) and VR – outside of gaming and entertainment:

  • Healthcare devices – 38%
  • Education – 28%’
  • Workforce training – 24%’
  • Manufacturing – 21%
  • Automotive – 19%
  • Marketing and advertising – 16%
  • In terms of training and education, VR and AR is often used to familiarise people with advanced or high-risk environments. Learners can explore simulated environments to complete training – the most well-known example being flight simulators – which saves time and money, but also eliminates the potential safety risk of training being completed on-site or in a real-world environment.

    Virtual changing rooms

    Another fast-growing sector for VR is retail, which is expected to deliver the third biggest commercial investment in 2024, according to IDC, following training and industrial maintenance. Why? In many cases, it’s being used by online stores to eliminate the practice of ‘home try-ons’.

    At present, there’s a growing trend of customers ordering several items to try on at home, then sending back any they don’t want. It’s expensive and time consuming for retailers, especially those offering free delivery and returns.

    To counter this, some online stores are using VR technology to create virtual changing rooms. These allow customers to get a better feel for products before ordering, reducing the need for home try-ons. It’s been found to improve conversion rates, increase order value and lower returns.

    Organising VR assets

    As virtual and augmented reality become more commonplace for businesses in all sectors, so too will the storage and organisation of VR and AR assets. When such a time comes for your organisation, iBase is on hand to help.

    Our digital asset management software is fully equipped for digital assets of all types and sizes. Using sophisticated metadata, you’ll always be able to find the assets you’re looking for quickly and easily. To find out more, arrange a one-to-one demo with our team.

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    Virtual Reality Business Spending to Exceed £3 Billion in 2023 | iBase