AR Software - Nigeria | Statista Market Forecast

Revenue in the AR Software market market in Nigeria is projected to reach US$17.9m in 2024.
Revenue in this market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 8.75%, leading to a projected market volume of US$27.2m by 2029.
While the majority of revenue is generated the United States, in Nigeria remains a notable player in the AR Software market market.
The number of users in Nigeria is expected to amount to 61.8m users by 2029.
User penetration in Nigeria will be 14.6% in 2024 and is anticipated to rise to 24.1% by 2029.
The average revenue per user (ARPU) in the Nigerian AR Software market market is projected to amount to US$0.5.
Nigeria is witnessing a burgeoning interest in AR software, driven by its youthful population and increasing investment in tech innovation.

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 Nigeria has been experiencing significant growth in recent years.

Customer preferences: Nigerian customers have shown a growing interest in AR Software due to its ability to enhance their digital experiences. The younger generation, in particular, is drawn to the interactive and immersive nature of AR technology. Additionally, businesses in Nigeria are increasingly recognizing the potential of AR Software to enhance their marketing and customer engagement strategies.

Trends in the market: One of the key trends in the AR Software market in Nigeria is the increasing adoption of AR applications in the gaming and entertainment industry. Nigerian gamers are embracing AR technology as a way to enhance their gaming experiences and make them more interactive. This trend is driven by the availability of affordable AR-enabled smartphones and the growing popularity of mobile gaming in the country. Another trend in the market is the use of AR Software in the retail sector. Nigerian retailers are leveraging AR technology to provide customers with virtual try-on experiences, allowing them to visualize how products will look on them before making a purchase. This trend is particularly prevalent in the fashion and beauty industries, where customers value the convenience and accuracy of virtual try-on tools.

Local special circumstances: Nigeria's large and youthful population is a key driver of the AR Software market. With a median age of 18. 4 years, Nigeria has a significant youth population that is tech-savvy and eager to embrace new technologies. This demographic factor creates a favorable environment for the growth of the AR Software market, as young Nigerians are more likely to adopt and engage with AR applications.

Underlying macroeconomic factors: The growing AR Software market in Nigeria can also be attributed to the country's improving internet infrastructure and smartphone penetration. With the increasing availability of affordable smartphones and internet connectivity, more Nigerians have access to AR-enabled devices and can easily download and use AR applications. This accessibility has contributed to the widespread adoption of AR Software in various sectors. Furthermore, the Nigerian government has been actively promoting the growth of the technology sector, including AR Software. Initiatives such as the National Information Technology Development Agency's (NITDA) support for local tech startups and the establishment of innovation hubs have created a conducive environment for the development and adoption of AR Software in Nigeria. In conclusion, the AR Software market in Nigeria is experiencing significant growth due to customer preferences for interactive and immersive digital experiences, the adoption of AR technology in the gaming and retail sectors, the country's large and tech-savvy youth population, improving internet infrastructure, and government support for the technology sector. These factors are driving the increasing demand for AR Software in Nigeria and creating opportunities for both local and international AR Software providers.

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.