AR Software - Europe | Statista Market Forecast

In Europe, revenue in the AR Software market market is projected to reach US$3.2bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 7.76%, which will result in a projected market volume of US$4.6bn by 2029.
With a projected market volume of US$3.9bn in 2024, most revenue is generated the United States.
Within the AR Software market market in Europe, the number of users is expected to amount to 486.5m users by 2029.
User penetration will be 59.4% in 2024 and is anticipated to reach 62.1% by 2029.
The average revenue per user (ARPU) in Europe is expected to amount to US$6.8.
The European AR software market is experiencing a surge in demand as businesses increasingly adopt immersive technologies for enhanced training and customer engagement.

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 Europe is experiencing significant growth and development.

Customer preferences: Customers in Europe are increasingly adopting AR software for various purposes. This is driven by the growing demand for immersive and interactive experiences, both in consumer and enterprise settings. Consumers are using AR software for entertainment, gaming, and social media applications, while businesses are leveraging AR technology for training, marketing, and product visualization.

Trends in the market: One of the key trends in the AR Software market in Europe is the integration of AR technology with mobile devices. With the widespread availability of smartphones and tablets, AR software developers are focusing on creating mobile-friendly applications that can be easily accessed and used by consumers and businesses. This trend is driven by the convenience and portability of mobile devices, which allow users to experience AR content anytime and anywhere. Another trend in the market is the increasing use of AR software in the healthcare industry. European countries are investing in AR technology to enhance medical training, improve patient care, and assist in surgical procedures. AR software is being used to provide real-time information, overlay virtual images on patients' bodies, and simulate complex medical scenarios. This trend is driven by the need for more efficient and accurate healthcare services, as well as the advancements in AR technology.

Local special circumstances: European countries have a strong focus on innovation and technology adoption, which contributes to the growth of the AR Software market. Countries like Germany, France, and the United Kingdom have well-established tech ecosystems and supportive government policies, which encourage the development and adoption of AR software. Additionally, Europe has a large pool of skilled software developers and engineers, who are driving innovation in the AR Software market.

Underlying macroeconomic factors: The growth of the AR Software market in Europe is also influenced by macroeconomic factors. The region has a stable and growing economy, which provides businesses and consumers with the financial resources to invest in AR software. Additionally, the increasing penetration of high-speed internet and the availability of affordable devices contribute to the adoption of AR technology. Furthermore, the European Union's focus on digital transformation and the development of emerging technologies creates a favorable environment for the AR Software market to thrive. In conclusion, the AR Software market in Europe is experiencing significant growth and development. This is driven by customer preferences for immersive and interactive experiences, the integration of AR technology with mobile devices, and the increasing use of AR software in the healthcare industry. European countries' focus on innovation, supportive government policies, and a stable economy contribute to the growth of the market. Additionally, the availability of high-speed internet and affordable devices further fuel the adoption of AR technology.

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.