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AR Hardware - China

China

The AR Hardware market in China is forecasted to achieve a revenue of €1.0bn by 2024.
It is projected to experience a compound annual growth rate (CAGR 2024-2029) of 13.60%, leading to a market volume of €1.9bn by 2029.
In 2024, in the United States is expected to generate the highest revenue with a market volume of €2,096.0m.
By 2029, the number of users in the AR Hardware market is estimated to reach 25.0m users.
The user penetration rate is anticipated to be 0.6% in 2024 and is expected to rise to 1.8% by 2029.
The average revenue per user (ARPU) is projected to be €125.3.
China is leading the way in AR hardware development, with numerous companies investing heavily in research and innovation.

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Analyst Opinion

The AR Hardware market in China is experiencing significant growth and development due to several key factors.

Customer preferences: Chinese consumers have shown a strong interest in AR hardware, driven by their desire for immersive and interactive experiences. AR technology allows users to blend the digital and physical worlds, creating unique and engaging experiences. This resonates with Chinese consumers who are increasingly seeking innovative and cutting-edge technologies. Additionally, the younger demographic in China, who are more tech-savvy and open to new experiences, are particularly drawn to AR hardware.

Trends in the market: One of the key trends in the AR hardware market in China is the increasing adoption of AR glasses. These glasses provide a hands-free and immersive AR experience, allowing users to interact with digital content while still being aware of their surroundings. This trend is driven by advancements in technology, making AR glasses more lightweight, comfortable, and affordable. As a result, more Chinese consumers are incorporating AR glasses into their daily lives for various purposes, such as gaming, education, and entertainment. Another trend in the market is the integration of AR technology into smartphones. Chinese smartphone manufacturers are increasingly incorporating AR features into their devices, such as AR cameras and AR apps. This allows users to experience AR without the need for additional hardware, making it more accessible and convenient. This trend is further fueled by the widespread adoption of smartphones in China, making AR technology easily accessible to a large user base.

Local special circumstances: China's large population and growing middle class present a unique opportunity for the AR hardware market. With a population of over 1. 4 billion people, there is a significant market for AR hardware products. Additionally, the rising disposable income of the middle class allows for increased spending on innovative technologies like AR hardware. This combination of a large population and growing middle class creates a favorable environment for the growth of the AR hardware market in China.

Underlying macroeconomic factors: China's strong economic growth and government support for technological innovation are key underlying macroeconomic factors driving the development of the AR hardware market. The Chinese government has identified AR as a strategic industry and has implemented various policies and initiatives to support its growth. This includes funding for research and development, tax incentives for companies in the AR industry, and the establishment of innovation centers and incubators. These measures create a conducive environment for companies to develop and commercialize AR hardware products in China. In conclusion, the AR Hardware market in China is experiencing significant growth and development due to customer preferences for immersive experiences, the increasing adoption of AR glasses and integration of AR technology into smartphones, the unique market conditions in China with its large population and growing middle class, and the government's support for technological innovation. These factors contribute to the thriving AR hardware market in China and present opportunities for companies operating in this industry.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR hardware revenue, which includes digital spending on hardware (headsets and glasses) that enables consumers to experience augmented reality.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, 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 data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. 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).