AR & VR - ASEAN

ASEAN

Revenue in the AR & VR market market within ASEAN is projected to reach US$1,215.0m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.70%, resulting in a projected market volume of US$1,930.0m by 2029.
The largest market in this market is AR Software, which is anticipated to have a market volume of US$383.7m in 2024.
While most revenue is generated the United States with a projected market volume of US$10,900.0m in 2024, the growth in ASEAN is noteworthy.
In the AR & VR market market, the number of users in ASEAN is expected to amount to 296.7m users by 2029.
User penetration in the region will be 45.7% in 2024 and is expected to increase to 46.7% by 2029.
The average revenue per user (ARPU) in ASEAN is expected to amount to US$4.3.
The ASEAN region is witnessing a significant surge in AR and VR adoption, driven by increasing investments in digital infrastructure and a burgeoning tech-savvy youth population.

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.
For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The AR & VR market in ASEAN is experiencing significant growth and development due to various factors.

Customer preferences: Customers in ASEAN are increasingly drawn to the immersive and interactive experiences offered by AR and VR technologies. These technologies provide a unique and engaging way to consume content, whether it be for entertainment, gaming, or educational purposes. With the growing popularity of smartphones and affordable VR headsets, consumers in ASEAN are embracing these technologies and incorporating them into their daily lives. Additionally, the younger population in ASEAN is particularly receptive to AR and VR, as they are more tech-savvy and open to exploring new digital experiences.

Trends in the market: One of the key trends in the AR & VR market in ASEAN is the adoption of these technologies in the gaming industry. ASEAN has a large and growing gaming market, and AR and VR technologies are enhancing the gaming experience by providing more immersive gameplay and virtual reality simulations. This trend is driven by the increasing demand for high-quality gaming experiences and the availability of affordable VR headsets. Another trend in the market is the integration of AR and VR technologies in the tourism and hospitality industry. ASEAN is known for its vibrant tourism sector, and businesses in the region are leveraging AR and VR to enhance the visitor experience. For example, virtual reality tours allow tourists to explore destinations before their visit, and augmented reality applications provide interactive information and guides during their trip. This trend is driven by the desire to attract and engage tourists in a competitive market.

Local special circumstances: One of the unique aspects of the AR & VR market in ASEAN is the cultural diversity and rich heritage of the region. This diversity presents opportunities for the development of AR and VR applications that showcase local traditions, arts, and historical sites. By incorporating local content and storytelling, AR and VR technologies can provide a deeper understanding and appreciation of ASEAN's cultural heritage. This local focus is important in catering to the preferences of ASEAN consumers and differentiating AR and VR experiences from those offered in other regions.

Underlying macroeconomic factors: The growing AR & VR market in ASEAN is also influenced by underlying macroeconomic factors. ASEAN countries are experiencing rapid economic growth, which is driving increased consumer spending power. This, in turn, fuels the demand for innovative and immersive technologies like AR and VR. Additionally, the region's strong digital infrastructure and connectivity support the adoption and usage of AR and VR technologies. As ASEAN continues to invest in digital development and innovation, the AR & VR market is expected to grow further. In conclusion, the AR & VR market in ASEAN is thriving due to customer preferences for immersive experiences, trends in the gaming and tourism industries, local special circumstances that cater to cultural diversity, and underlying macroeconomic factors such as economic growth and digital infrastructure. As these factors continue to evolve, the AR & VR market in ASEAN is expected to expand and offer even more innovative and engaging experiences for consumers in the region.

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).