AR Software - GCC | Statista Market Forecast

Revenue in the AR Software market market within the GCC is projected to reach US$96.6m in 2024.
Revenue in this region is expected to show an annual growth rate (CAGR 2024-2029) of 8.74%, resulting in a projected market volume of US$146.9m by 2029.
While the GCC is not the primary generator of revenue in the AR Software market market, which is predominantly led by the United States with a projected market volume of US$3.9bn in 2024, it still plays a significant role.
In the GCC, the number of users in the AR Software market market is expected to amount to 31.4m users by 2029.
User penetration in the GCC will be 59.7% in 2024 and is expected to hit 59.6% by 2029.
The average revenue per user (ARPU) in the GCC is expected to amount to US$3.2.
The GCC region is witnessing a surge in AR software adoption, driven by increasing investments in digital transformation across various sectors.

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 GCC is experiencing significant growth and development due to several key factors. Customer preferences in the GCC region are shifting towards more immersive and interactive experiences, which has led to an increased demand for AR software.

Consumers are looking for innovative ways to engage with brands and products, and AR technology provides a unique and engaging platform for this interaction. Additionally, businesses in the region are recognizing the potential of AR software to enhance their operations and improve customer experiences. This has further fueled the demand for AR software in the GCC market.

Trends in the AR Software market in GCC are driven by advancements in technology and the increasing adoption of AR across various industries. One of the key trends is the integration of AR software into e-commerce platforms. With the rise of online shopping in the region, businesses are leveraging AR technology to provide virtual try-on experiences for customers, allowing them to see how products will look and fit before making a purchase.

This trend is particularly prevalent in the fashion and beauty industries, where customers can virtually try on clothes, accessories, and makeup. Another trend in the market is the use of AR software in the education sector. GCC countries are investing heavily in education and are embracing technology to enhance the learning experience.

AR software is being used to create interactive and immersive educational content, allowing students to visualize complex concepts and engage in hands-on learning. This trend is expected to continue as governments and educational institutions in the region prioritize digital transformation. Local special circumstances in the GCC region, such as the high smartphone penetration rate and the presence of tech-savvy consumers, have contributed to the growth of the AR Software market.

The GCC countries have one of the highest smartphone penetration rates in the world, providing a ready user base for AR applications. Additionally, consumers in the region are early adopters of technology and are receptive to new and innovative experiences, making the GCC market an attractive opportunity for AR software providers. Underlying macroeconomic factors, such as government initiatives and investments in technology and innovation, are also driving the growth of the AR Software market in GCC.

Governments in the region are actively promoting digital transformation and are investing in infrastructure and technology to support this transition. This includes initiatives to support the development and adoption of AR software in various sectors, such as tourism, healthcare, and retail. These investments create a favorable environment for the growth of the AR Software market in GCC.

In conclusion, the AR Software market in GCC is experiencing significant growth and development due to customer preferences for immersive experiences, trends in e-commerce and education, local special circumstances such as high smartphone penetration and tech-savvy consumers, and underlying macroeconomic factors including government initiatives and investments in technology and innovation. As the market continues to evolve, we can expect to see further advancements in AR software and increased adoption across various industries in the GCC 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.