AR & VR

In Australia & Oceania, revenue in the AR & VR market market is projected to reach US$1.4bn in 2024.
This revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 9.39%, leading to a projected market volume of US$2.1bn by 2029.
The largest market within this market in the region is AR Software, which is expected to have a market volume of US$545.8m in 2024.
Despite this, the majority of revenue in the AR & VR market market is generated the United States, with a projected market volume of US$10.9bn in 2024.
Furthermore, the number of users in the AR & VR market market in Australia & Oceania is expected to reach 23.0m users by 2029.
User penetration is projected to be 67.0% in 2024 and is anticipated to increase to 68.9% by 2029.
Lastly, the average revenue per user (ARPU) is expected to amount to US$63.5.
Australia is experiencing a surge in AR and VR adoption across sectors such as education and healthcare, driving innovation and enhancing user engagement.

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.

AR headsets and glasses, such as HoloLens
VR headsets, such as Meta Quest
AR apps, such as Snapchat or Pokémon Go
VR games that can be accessed via distribution platforms such as Steam
Apps that can be accessed via iPhones and Android phones

Cardboard VR headsets, such as Google VR
VR headsets for smartphones, such as Fiyapoo VR
Apps for Android phones that are solely available in stores such as Amazon Appstore and Microsoft Store
Apps available on other operating systems, such as Ubuntu
In-game subscriptions, such as Google Play Pass

The AR & VR market in Australia & Oceania is experiencing significant growth and development due to a variety of factors.

Customer preferences: Customers in Australia & Oceania are increasingly drawn to the immersive and interactive experiences offered by AR & VR technology. The ability to explore virtual worlds, participate in virtual training programs, and engage in virtual social interactions has captured the interest and imagination of consumers in the region. Additionally, the entertainment industry in Australia & Oceania has embraced AR & VR technology, creating a demand for virtual reality gaming experiences and augmented reality applications that enhance the viewing experience of movies and television shows.

Trends in the market: One of the key trends in the AR & VR market in Australia & Oceania is the adoption of these technologies by various industries beyond entertainment. The healthcare sector, for example, is utilizing AR & VR to enhance medical training, improve patient outcomes, and provide virtual therapy options. Similarly, the education sector is leveraging AR & VR to create immersive learning experiences and engage students in new and exciting ways. Furthermore, businesses in sectors such as real estate and tourism are using AR & VR to showcase properties and destinations, allowing customers to virtually explore their options before making a purchase or booking a trip.

Local special circumstances: Australia & Oceania is home to a diverse range of cultures and languages, which presents both opportunities and challenges for the AR & VR market. Companies operating in the region need to consider the cultural sensitivities and preferences of different communities, ensuring that their AR & VR experiences are inclusive and relevant to the local audience. Additionally, the vast geographical distances in Australia & Oceania create a need for virtual communication and collaboration tools, making AR & VR technologies particularly valuable in connecting people across different locations.

Underlying macroeconomic factors: The growing AR & VR market in Australia & Oceania is supported by several macroeconomic factors. The region has a strong digital infrastructure and high internet penetration rates, providing a solid foundation for the adoption and use of AR & VR technologies. Furthermore, the governments in Australia & Oceania are investing in the development of digital technologies and innovation, creating an environment that fosters the growth of the AR & VR market. Additionally, the region has a skilled workforce and a thriving tech startup ecosystem, attracting both local and international companies to invest in AR & VR development and research. In conclusion, the AR & VR market in Australia & Oceania is experiencing significant growth and development due to customer preferences for immersive experiences, the adoption of AR & VR technologies by various industries, the diverse cultural landscape of the region, and the underlying macroeconomic factors that support the growth of the market. As the technology continues to evolve and improve, the AR & VR market in Australia & Oceania is expected to expand further, offering new and exciting opportunities for businesses and consumers alike.

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).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Extended reality (XR) is an umbrella term for all immersive technologies including augmented reality (AR), virtual reality (VR), and mixed reality (MR), plus those that are yet to be created. XR technologies extend the reality we experience by either merging the virtual and “real” worlds or by creating a fully immersive experience. The global XR market is expected to grow considerably in the coming years, with XR innovation expected to be strong in the United States and across Asia, notably in Japan and China, as well as Germany and the United Kingdom in Europe.