AR Software - Indonesia | Statista Market Forecast

In Indonesia, the revenue in the AR Software market market is projected to reach US$123.8m in 2024.
The revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 8.79%, leading to a projected market volume of US$188.6m by 2029.
While most revenue in the global AR Software market market is generated the United States, in Indonesia is also part of this growing sector.
In the AR Software market market, the number of users in Indonesia is anticipated to amount to 145.0m users by 2029.
User penetration in Indonesia is expected to be 47.0% in 2024 and is projected to increase to 50.0% by 2029.
Furthermore, the average revenue per user (ARPU) in Indonesia is expected to reach US$0.9.
Indonesia's AR software market is witnessing a surge in interest as local businesses increasingly adopt immersive technologies for enhanced customer engagement and innovative marketing strategies.

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 Indonesia is experiencing significant growth and development, driven by various factors such as increasing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Indonesia are increasingly favoring AR Software due to its ability to enhance user experiences and provide immersive interactions. The demand for AR Software is driven by the growing popularity of augmented reality technologies among consumers, especially in the gaming and entertainment industries. Additionally, businesses are also adopting AR Software to improve their marketing strategies, enhance customer engagement, and provide innovative solutions.

Trends in the market: One of the major trends in the AR Software market in Indonesia is the integration of AR technology with mobile devices. With the widespread use of smartphones and tablets, AR Software developers are focusing on creating mobile applications that can provide AR experiences to a wider audience. This trend is fueled by the increasing penetration of mobile devices in Indonesia, making AR Software more accessible and convenient for users. Another trend in the market is the development of AR Software for industrial applications. Industries such as manufacturing, construction, and healthcare are adopting AR Software to improve productivity, streamline operations, and enhance safety. The use of AR Software in these sectors allows workers to visualize complex information, perform remote inspections, and receive real-time guidance, leading to increased efficiency and accuracy.

Local special circumstances: Indonesia's large and growing population, coupled with its increasing internet penetration, provides a favorable environment for the AR Software market. The country's young and tech-savvy population is driving the demand for innovative technologies, including AR Software. Moreover, the government's initiatives to promote digital transformation and entrepreneurship further contribute to the growth of the AR Software market in Indonesia.

Underlying macroeconomic factors: The economic growth of Indonesia plays a significant role in the development of the AR Software market. As the country's economy continues to expand, businesses and consumers have more disposable income to invest in advanced technologies like AR Software. Additionally, the government's focus on infrastructure development and digitalization creates opportunities for AR Software providers to cater to various sectors. In conclusion, the AR Software market in Indonesia is witnessing growth and development due to increasing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for AR Software is driven by customer preferences for enhanced user experiences, the integration of AR technology with mobile devices, and the adoption of AR Software in industrial applications. The local special circumstances, such as Indonesia's large and tech-savvy population, along with the government's initiatives to promote digital transformation, further contribute to the market's growth. The underlying macroeconomic factors, including the country's economic growth and focus on infrastructure development, create a conducive environment for the AR Software market to thrive in Indonesia.

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.