AR & VR - Austria

Austria

In Austria, revenue in the AR & VR market market is projected to reach US$190.8m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.40%, leading to a projected market volume of US$299.0m by 2029.
The largest market within this market in Austria is AR Software, which is anticipated to have a market volume of US$61.0m in 2024.
While most revenue is generated the United States with a projected market volume of US$10,900.0m in 2024, in Austria is also expected to contribute significantly to the overall figures.
In the AR & VR market market, the number of users in Austria is expected to reach 6.7m users by 2029.
User penetration will be 69.5% in 2024 and is projected to increase to 73.7% by 2029.
The average revenue per user (ARPU) in Austria is expected to amount to US$30.6.
Austria is experiencing a surge in demand for AR and VR technologies, particularly in education and tourism sectors, reflecting a growing interest in immersive 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

The AR & VR market in Austria has been experiencing significant growth in recent years, driven by customer preferences for immersive and interactive experiences.

Customer preferences: Customers in Austria have shown a strong interest in AR & VR technologies, as they provide a unique and engaging way to experience content. Whether it is gaming, entertainment, or educational applications, Austrian consumers are increasingly seeking out AR & VR experiences. This can be attributed to the desire for more interactive and immersive forms of entertainment, as well as the growing popularity of virtual reality headsets and augmented reality apps.

Trends in the market: One of the key trends in the AR & VR market in Austria is the increasing adoption of virtual reality headsets. These devices offer users a fully immersive experience, allowing them to feel like they are part of the virtual world. As the technology becomes more advanced and affordable, more consumers in Austria are purchasing VR headsets to enjoy gaming, virtual travel, and other experiences. Another trend in the market is the integration of AR & VR technologies into various industries. For example, in the retail sector, companies are using augmented reality to enhance the shopping experience by allowing customers to virtually try on clothes or visualize furniture in their homes. In the healthcare industry, VR is being used for pain management and therapy. These applications of AR & VR are gaining traction in Austria, as businesses recognize the potential for improved customer engagement and increased efficiency.

Local special circumstances: Austria has a strong technology infrastructure and a highly educated population, which has contributed to the growth of the AR & VR market. The country's favorable business environment and government support for innovation and technology have also played a role in attracting investment and fostering the development of AR & VR startups.

Underlying macroeconomic factors: The growth of the AR & VR market in Austria can also be attributed to underlying macroeconomic factors. The country has a stable and prosperous economy, which has led to increased consumer spending power. As a result, more Austrians are able to afford AR & VR devices and experiences. Additionally, the COVID-19 pandemic has accelerated the adoption of AR & VR technologies in Austria. With restrictions on travel and social gatherings, people have turned to virtual experiences as a way to connect, entertain themselves, and continue their work or education remotely. This has created a greater demand for AR & VR solutions, leading to further growth in the market. In conclusion, the AR & VR market in Austria is experiencing significant growth due to customer preferences for immersive and interactive experiences, the increasing adoption of virtual reality headsets, the integration of AR & VR technologies into various industries, the country's strong technology infrastructure and favorable business environment, and underlying macroeconomic factors such as increased consumer spending power and the impact of the COVID-19 pandemic.

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).