AR Software - EU-27 | Statista Market Forecast

In the EU-27, revenue in the AR Software market market is projected to reach US$2.3bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.98%, resulting in a projected market volume of US$3.4bn by 2029.
With a projected market volume of US$3.9bn in 2024, most revenue is generated the United States, which may influence the EU-27 market dynamics.
In the AR Software market market within the EU-27, the number of users is expected to amount to 284.2m users by 2029.
User penetration will be 63.9% in 2024 and is expected to hit 67.1% by 2029 in the EU-27.
The average revenue per user (ARPU) in the EU-27 is expected to amount to US$8.4.
The EU-27 is witnessing a surge in AR software investment, driven by increasing demand for immersive training solutions across various industries.

The AR Software market comprises all in-app ad revenues generated from apps that have AR features as well as revenues from app purchases. These apps have to be accessible via iPhones and Android phones and must be distributed via major app stores. The market consists of three markets: Social Media, Gaming, and eCommerce. In social media, augmented reality is used when integrating different face filters and lenses into the relevant apps. In gaming, augmented reality is used to display characters, surfaces, and/or anything else on mobile phones by employing mobile cameras. Similarly, in eCommerce, augmented reality is used to either “try on” different clothes or makeup by making them appear on your mobile phone or to even display different pieces of furniture, placing them somewhere in the surroundings filmed by you. The most popular apps are Snapchat, Instagram, Pokémon Go, and Ikea Place. All revenue data solely refers to B2C transactions.

All apps including augmented reality that are distributed via major app stores and used by consumers for gaming, social media activities, and eCommerce
Apps that run on iPhones and Android phones
Major apps include Snapchat, Instagram, Pokémon Go, and Ikea Place

Augmented reality apps that are not distributed via major app stores or run on devices other than iPhones and Android phones
B2B enterprise software

The AR Software market in EU-27 is experiencing significant growth and development due to increasing customer preferences for immersive and interactive experiences, as well as advancements in technology and the availability of high-speed internet.

Customer preferences: Customers in the EU-27 region are increasingly seeking immersive and interactive experiences, and AR software provides them with the opportunity to engage with digital content in a more realistic and engaging way. The ability to overlay virtual objects onto the real world, whether through mobile devices or specialized AR headsets, allows users to interact with digital content in a more intuitive and natural manner. This has led to a growing demand for AR software across various industries, including gaming, entertainment, retail, and healthcare.

Trends in the market: One of the key trends in the AR Software market in EU-27 is the growing adoption of AR in the gaming industry. AR games, such as Pokemon Go, have gained immense popularity in the region, attracting a large number of users and generating significant revenue. This has prompted game developers to invest in the development of AR games, driving the demand for AR software. Another trend in the market is the integration of AR technology in the retail sector. Retailers are leveraging AR software to enhance the shopping experience for customers by allowing them to virtually try on clothes, visualize furniture in their homes, or see how products will look in real-life settings. This not only improves customer engagement but also helps in reducing return rates and increasing sales.

Local special circumstances: The EU-27 region is known for its strict data protection and privacy regulations. This has implications for the AR Software market, as companies need to ensure compliance with these regulations when collecting and processing user data. Additionally, the region has a diverse cultural and linguistic landscape, which poses challenges for AR software developers in terms of localization and customization of content to cater to the preferences and needs of different countries and regions within the EU-27.

Underlying macroeconomic factors: The growth of the AR Software market in EU-27 is also influenced by underlying macroeconomic factors. The region has a strong digital infrastructure, with widespread access to high-speed internet and a high smartphone penetration rate. This enables users to access and use AR software seamlessly, driving the demand for such applications. Furthermore, the EU-27 region has a robust startup ecosystem and supportive government policies for innovation and technology. This has fostered the growth of AR software startups, attracting investments and driving innovation in the market. The availability of funding and resources has enabled these startups to develop cutting-edge AR software solutions, further fueling the growth of the market. In conclusion, the AR Software market in EU-27 is experiencing significant growth and development due to increasing customer preferences for immersive and interactive experiences, advancements in technology, and the availability of high-speed internet. The adoption of AR in gaming and retail sectors, strict data protection regulations, and underlying macroeconomic factors such as digital infrastructure and supportive government policies are key drivers of the market growth in the region.

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR software revenue, which includes revenues related to in-app purchases as well as revenues from the purchase of social media, gaming, and eCommerce apps.

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).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Augmented reality (AR) technology integrates digital information with the physical environment, live and in real time. Through the addition of graphics, sounds, haptic feedback, or even smell to the natural world as it exists, AR can combine real life with a super-imposed image or animation using the camera on a mobile device or through AR headsets and glasses. As part of the wider extended reality (XR) industry, the global AR market size is expected to grow considerably in the coming years.