AR & VR - Benelux

Benelux

Revenue in the AR & VR market market in the Benelux region is projected to reach €529.8m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.00%, resulting in a projected market volume of €815.3m by 2029.
The largest market within this market in Benelux is AR Software, with a market volume of €163.8m in 2024.
However, it is notable that most revenue is generated the United States, with a projected market volume of €10,000.0m in 2024.
In the AR & VR market market, the number of users in Benelux is expected to amount to 21.4m users by 2029.
User penetration will be 70.7% in 2024 and is expected to hit 72.0% by 2029.
Furthermore, the average revenue per user (ARPU) in the Benelux region is expected to amount to €25.5.
The Benelux region is witnessing a surge in AR & VR applications within the healthcare sector, enhancing patient engagement and training methodologies.

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.

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Analyst Opinion

The AR & VR market in Benelux is experiencing significant growth and development, driven by several key factors. Customer preferences in the Benelux region are increasingly favoring immersive and interactive experiences, which is fueling the demand for AR and VR technologies.

Consumers are seeking innovative ways to engage with content and products, and AR and VR offer unique and immersive experiences that traditional media cannot provide. Additionally, the younger demographic in Benelux is particularly receptive to AR and VR, as they have grown up with technology and are eager to explore new digital experiences. Trends in the market indicate that the adoption of AR and VR technologies is expanding across various industries in Benelux.

In the gaming sector, virtual reality gaming experiences are gaining popularity, offering players a more immersive and realistic gaming environment. The healthcare industry is also embracing AR and VR technologies for training purposes, allowing medical professionals to practice procedures in a simulated environment. Furthermore, the retail sector is utilizing AR technology to enhance the shopping experience, allowing customers to virtually try on clothing or visualize furniture in their homes before making a purchase.

Local special circumstances in the Benelux region contribute to the growth of the AR and VR market. The region is known for its strong technology infrastructure and high internet penetration rates, providing a solid foundation for the adoption of AR and VR technologies. Additionally, the Benelux countries have a history of innovation and entrepreneurship, with a supportive business environment that encourages the development and implementation of new technologies.

Underlying macroeconomic factors also play a role in the growth of the AR and VR market in Benelux. The region has a strong economy and high disposable income levels, allowing consumers to invest in AR and VR devices and experiences. Furthermore, the Benelux countries have a well-developed education system, which fosters a skilled workforce capable of driving innovation in the AR and VR industry.

In conclusion, the AR and VR market in Benelux is experiencing significant growth and development, driven by customer preferences for immersive experiences, expanding adoption across industries, local special circumstances, and underlying macroeconomic factors. As technology continues to advance and consumer demand for immersive experiences grows, the AR and VR market in Benelux is expected to continue its upward trajectory.

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).