AR & VR - Worldwide

Worldwide

Revenue in the AR & VR market is projected to reach €30.36bn in 2023.
Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 13.11%, resulting in a projected market volume of €49.70bn by 2027.
The market's largest segment is AR Software with a market volume of €11.30bn in 2023.
With a projected market volume of €8,359.00m in 2023, most revenue is generated in the United States.
In the AR & VR market, the number of users is expected to amount to 2,593.00m users by 2027.
User penetration will be 28.8% in 2023 and is expected to hit 32.6% by 2027.
The average revenue per user (ARPU) is expected to amount to €13.74.
Revenue values displayed here do only account for B2C revenues. Meaning, according to the displayed market share of B2C, 0.0% of the total market (B2C & B2B) is covered.

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 segments: 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 segments and subsegments; B2B and B2G revenues are not included. Additional definitions for each segment can be found on the respective segment pages.
Market numbers for VR headsets are also featured in the Consumer Market Outlook, namely in the Gaming Equipment segment of the Consumer Electronics market. Unlike the VR Hardware segment in the Advertising & Media Outlook, the Gaming Equipment segment 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.
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