AR & VR - Argentina

Argentina

In Argentina, revenue in the AR & VR market market is projected to reach US$234.5m in 2024.
The revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 9.63%, which will result in a projected market volume of US$371.3m by 2029.
The largest market within this market in Argentina is AR Advertising, with a market volume of US$74.5m in 2024.
Although most revenue is generated the United States, it is important to note the potential growth in Argentina's market.
In the AR & VR market sector, the number of users in Argentina is anticipated to amount to 26.1m users by 2029.
User penetration in Argentina will be 53.2% in 2024 and is expected to reach 55.0% by 2029.
The average revenue per user (ARPU) in Argentina is expected to amount to US$9.6.
Argentina's burgeoning AR & VR market is increasingly attracting local startups, driven by a growing demand for immersive educational and entertainment experiences.

Definition:

Augmented reality (AR) and virtual reality (VR) make it possible to combine the real and virtual worlds. AR is generally accessed via mobile phones and primarily relies on lenses. AR effects can be created by using lenses in social media apps, for example. AR is also used for displaying digital 3D objects in our surroundings, e.g., in gaming or eCommerce apps. Meanwhile, VR technology allows users to dive into the virtual world, and, unlike AR technology, it requires a headset device which enables the creation of virtual worlds.

Structure:

The AR & VR market consists of six different markets: AR Advertising, AR Hardware, AR Software, VR Advertising, VR Hardware, and VR Software. AR Advertising covers mobile advertising that is displayed in the most prominent social media apps. AR Hardware comprises AR headsets and glasses. AR Software is divided into three different application types, namely social media, gaming, and eCommerce applications, which can be accessed via the most prominent app stores. VR Advertising covers in-game advertising as well as advertising in VR videos. VR Hardware comprises both tethered head-mounted displays (HMDs) and stand-alone HMD headsets. Lastly, VR Software covers VR games and VR videos, which require headsets.

Additional information:

The market comprises revenues, users, average revenue per user, and penetration rates. Revenues are generated through in-app purchases, advertising spending, and consumer spending on apps, games, and hardware such as headsets or glasses. Sales channel data shows both online and offline revenues, which include VAT. The market only displays B2C revenues and users for the above-mentioned markets and markets; B2B and B2G revenues are not included. Additional definitions for each market can be found on the respective market pages.
Market numbers for VR headsets are also featured in the Consumer Market Insights, namely in the Gaming Equipment market of the Consumer Electronics market. Unlike the VR Hardware market in the Advertising & Media Outlook, the Gaming Equipment market also covers smartphone VR devices.
Key players in the market include companies such as Meta (Oculus VR), Microsoft (HoloLens), Snap Inc. with different lenses, and Nvidia, which offers computing hardware components.
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Analyst Opinion

Argentina, known for its rich cultural heritage and vibrant arts scene, is also experiencing a growing interest in the AR & VR market. As technology continues to advance, the demand for augmented reality (AR) and virtual reality (VR) experiences is on the rise.

In Argentina, this trend can be attributed to various factors, including customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Argentina are shifting towards immersive and interactive experiences. Consumers are increasingly seeking unique and engaging ways to interact with products and services.

AR and VR technologies provide an innovative solution to meet these preferences by offering virtual tours, interactive gaming experiences, and virtual shopping platforms. This customer demand is driving the growth of the AR & VR market in Argentina. Trends in the market indicate a growing adoption of AR & VR technologies across various industries in Argentina.

In the entertainment sector, virtual reality gaming experiences are gaining popularity, allowing users to fully immerse themselves in virtual worlds. Additionally, AR applications are being utilized in the tourism industry to provide virtual tours of popular attractions, enhancing the visitor experience. Furthermore, businesses are leveraging AR & VR technologies for marketing and advertising purposes, creating interactive and memorable campaigns.

Local special circumstances also contribute to the development of the AR & VR market in Argentina. The country has a strong creative and artistic community, which fosters innovation and experimentation with emerging technologies. This entrepreneurial spirit has led to the emergence of startups and developers specializing in AR & VR applications.

Furthermore, Argentina's lower labor costs compared to other countries make it an attractive destination for companies looking to outsource AR & VR development projects. Underlying macroeconomic factors also play a role in the growth of the AR & VR market in Argentina. The country has a large and tech-savvy population, with increasing access to smartphones and high-speed internet.

This widespread connectivity allows for seamless integration of AR & VR technologies into everyday life. Additionally, the government's support for technological advancements and innovation through various initiatives and grants further stimulates the AR & VR market. In conclusion, the AR & VR market in Argentina is experiencing significant growth due to customer preferences for immersive experiences, market trends in various industries, local special circumstances fostering innovation, and underlying macroeconomic factors.

As the demand for AR & VR technologies continues to increase, Argentina is poised to become a major player in the global AR & VR market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the AR & VR market. AR and VR enable consumers to experience a new dimension, using either a headset or installed units, as they combine the real and virtual worlds. Consumer revenue figures refer to revenues relating to AR hardware, AR software, VR hardware, VR software, and spending on AR and VR advertising. Both digital and non-digital revenues are included.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports. In addition, we use relevant key market indicators and data from country-specific associations, such as consumer spending, internet penetration, 4G coverage, and historical developments. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, 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 market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. 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).