The company said it was of the opinion that most of the growth in spending would come from the commercial and public sectors, with the highest growth to come from the financial (133.9 CAGR) and infrastructure (122.8% CAGR) over the five-year forecast period.
Estimates were taken from the IDC Worldwide Semiannual Augmented and Virtual Reality Spending Guide.
The manufacturing and public sectors would not be far behind, either, IDC said. By comparison, consumer spending on AR/VR was expected to deliver a modest CAGR of 52.2% from 2019-2023.
"Augmented reality uses cases are also growing with a wide variety of companies leveraging next-generation hardware, software, and services to fundamentally change existing business processes and bringing new capabilities to first-line workers who require hands-free technology."
IDC said commercial use cases forecast to receive the biggest investments in 2023 were training (US$8.5 billion), industrial maintenance (US$4.3 billion), and retail showcasing (US$3.9 billion).
The three consumer use cases for AR/VR (VR gaming, VR video/feature viewing, and AR gaming) were forecast to see spending of US$20.8 billion in 2023. Use cases that would see the fastest spending growth over the forecast period included AR for lab and field education, AR for public infrastructure maintenance, and AR for anatomy diagnostic.
The IDC figures predicted hardware would account for more than half of all AR/VR spending, followed by software and services. Strong spending growth (189.2% CAGR) for AR viewers would make this the largest hardware category by 2023, followed by VR host devices.
AR software would be the second fastest growing category, enabling it to overtake VR software spending by 2022. Services spending would be driven by strong growth from AR consulting services, AR custom application development, and AR systems integration.
"Augmented reality is gaining share in the commercial market due to its ability to facilitate tasks, provide access to resources, and solve complex problems," said Marcus Torchia, research director, Customer Insights & Analysis at IDC.
"Industries such as manufacturing, utilities, telecommunications, and logistics are increasingly adopting AR for performing tasks such as assembly, maintenance, and repair."
China is the country forecast to see the largest AR/VR spending totals throughout the five-year period, followed by the US. The two countries will account for nearly three-quarters of all spending worldwide by 2023.
The fastest growth in AR/VR spending will be in Western Europe (101.1% CAGR), followed by the US and China.