Market Insights
- Worldwide
- The AR & VR market is projected to generate revenue of US$40.4bn in 2024.
- This market is expected to grow at an annual rate of 8.97% (CAGR 2024-2029), resulting in a projected market volume of US$62.0bn by 2029.
- The largest market segment within AR & VR market is AR Software, which is expected to reach a market volume of US$13.0bn in 2024.
- The United States is the leading revenue generator in this market, with a projected market volume of US$10,900.0m in 2024.
- in the world, the number of AR & VR market users is expected to reach 3,728.0m users by 2029.
- The user penetration rate is projected to be 52.8% in 2024 and is expected to increase to 56.5% by 2029.
- The average revenue per user (ARPU) is expected to be US$11.9.
- It is important to note that the revenue values mentioned here only account for B2C revenues.
- This means that the displayed market share of B2C covers 55.0% of the total market (B2C & B2B).
- Worldwide, the AR & VR market has seen significant growth, with countries like China and the United States leading the way in terms of innovation and adoption.
Definition:
Augmented reality (AR) and virtual reality (VR) make it possible to combine the real and virtual worlds. AR is generally accessed via mobile phones and primarily relies on lenses. AR effects can be created by using lenses in social media apps, for example. AR is also used for displaying digital 3D objects in our surroundings, e.g., in gaming or eCommerce apps. Meanwhile, VR technology allows users to dive into the virtual world, and, unlike AR technology, it requires a headset device which enables the creation of virtual worlds.
Structure:
The AR & VR market consists of six different markets: AR Advertising, AR Hardware, AR Software, VR Advertising, VR Hardware, and VR Software. AR Advertising covers mobile advertising that is displayed in the most prominent social media apps. AR Hardware comprises AR headsets and glasses. AR Software is divided into three different application types, namely social media, gaming, and eCommerce applications, which can be accessed via the most prominent app stores. VR Advertising covers in-game advertising as well as advertising in VR videos. VR Hardware comprises both tethered head-mounted displays (HMDs) and stand-alone HMD headsets. Lastly, VR Software covers VR games and VR videos, which require headsets.
Additional information:
The market comprises revenues, users, average revenue per user, and penetration rates. Revenues are generated through in-app purchases, advertising spending, and consumer spending on apps, games, and hardware such as headsets or glasses. Sales channel data shows both online and offline revenues, which include VAT. The market only displays B2C revenues and users for the above-mentioned markets and markets; B2B and B2G revenues are not included. Additional definitions for each market can be found on the respective market pages.
Market numbers for VR headsets are also featured in the Consumer Market Insights, namely in the Gaming Equipment market of the Consumer Electronics market. Unlike the VR Hardware market in the Advertising & Media Outlook, the Gaming Equipment market also covers smartphone VR devices.
Key players in the market include companies such as Meta (Oculus VR), Microsoft (HoloLens), Snap Inc. with different lenses, and Nvidia, which offers computing hardware components.
For more information on the data displayed, use the info button right next to the boxes.
in-scope
- AR headsets and glasses, such as HoloLens
- VR headsets, such as Meta Quest
- AR apps, such as Snapchat or Pokémon Go
- VR games that can be accessed via distribution platforms such as Steam
- Apps that can be accessed via iPhones and Android phones
out-of-scope
- Cardboard VR headsets, such as Google VR
- VR headsets for smartphones, such as Fiyapoo VR
- Apps for Android phones that are solely available in stores such as Amazon Appstore and Microsoft Store
- Apps available on other operating systems, such as Ubuntu
- In-game subscriptions, such as Google Play Pass
- AR Advertising
- AR Software
- AR Hardware
- VR Advertising
- VR Software
- VR Hardware
Related markets:
Advertising
Media
Esports
Metaverse
Online Gambling
App
Sports
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![AR & VR - Worldwide | Statista Market Forecast (2) AR & VR - Worldwide | Statista Market Forecast (2)](https://i0.wp.com/cdn.statcdn.com/static/img/outlook/methodology-cover.png)
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Analyst Opinion
The AR & VR market in Worldwide is experiencing significant growth and development, driven by customer preferences for immersive and interactive experiences, as well as advancements in technology. Customer preferences: Trends in the market: Local special circ*mstances: Underlying macroeconomic factors:
Methodology
Data coverage:
The data encompasses B2C enterprises. Figures are based on the AR & VR market. AR and VR enable consumers to experience a new dimension, using either a headset or installed units, as they combine the real and virtual worlds. Consumer revenue figures refer to revenues relating to AR hardware, AR software, VR hardware, VR software, and spending on AR and VR advertising. Both digital and non-digital revenues are included.
Modeling approach / Market size:
Market sizes are determined through a top-down approach, building on specific predefined factors for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports. In addition, we use relevant key market indicators and data from country-specific associations, such as consumer spending, internet penetration, 4G coverage, and historical developments. This data helps us estimate the market size for each country individually.
Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.
Additional notes:
The market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).
Overview
- Revenue
- Analyst Opinion
- Reach
- Global Comparison
- Methodology
- Key Market Indicators
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