AR & VR - Baltics

Baltics

The AR & VR market in the Baltics is projected to generate a revenue of US$53.4m in 2024.
This market segment is expected to experience an annual growth rate, with a compound annual growth rate (CAGR) of 9.96% between 2024 and 2029.
As a result, the projected market volume is estimated to reach US$85.9m by 2029.
Among the various segments in the AR & VR market, AR Software is the largest, with a market volume of US$16.7m in 2024.
The United States leads in terms of revenue generation, projected to reach a market volume of US$10,900.0m in the same year.
In terms of user base, the AR & VR market is expected to reach 3,250.0k users users by 2029.
User penetration, which is the percentage of the population using AR & VR market, is predicted to be 55.5% in 2024 and is projected to increase to 58.1% by 2029.
The average revenue per user (ARPU) is estimated to be US$16.5.
It is important to note that the revenue values mentioned here only account for business-to-consumer (B2C) revenues.
This means that the displayed market share of B2C represents 0.00 of the total market, which includes both B2C and business-to-business (B2B) revenues.
The Baltics are emerging as a hotbed for AR & VR innovation, with a growing number of startups and a supportive ecosystem.

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 Baltics is experiencing significant growth and development, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in the Baltics are shifting towards immersive and interactive experiences, leading to an increased demand for AR & VR technologies.

Consumers are seeking innovative ways to engage with content and products, and AR & VR offer unique opportunities to enhance their experiences. The ability to visualize products in a virtual environment or to explore virtual worlds has become increasingly appealing to customers in the region. Trends in the AR & VR market in Baltics are aligned with global patterns, but with some local variations.

One of the key trends is the adoption of AR & VR in the gaming industry. The Baltics have a strong gaming culture, and the integration of AR & VR technologies into gaming experiences has gained popularity. This trend is driven by the desire for more immersive gameplay and the ability to interact with virtual worlds in a more realistic way.

Another trend in the Baltics is the utilization of AR & VR in the tourism sector. The region is known for its rich cultural heritage and natural beauty, and AR & VR technologies provide an opportunity to showcase these attractions in a unique and engaging manner. Virtual tours, augmented reality guides, and immersive experiences are being developed to enhance the overall tourism experience and attract more visitors.

Local special circumstances in the Baltics also contribute to the development of the AR & VR market. The region has a strong tech-savvy population and a thriving startup ecosystem, which fosters innovation and entrepreneurship. This creates a favorable environment for the growth of AR & VR companies and the development of new technologies.

Additionally, the relatively small size of the Baltics allows for easier adoption and implementation of AR & VR solutions, making it an attractive market for companies looking to test and refine their products. Underlying macroeconomic factors also play a role in the development of the AR & VR market in the Baltics. The region has experienced steady economic growth in recent years, which has increased disposable income and consumer spending.

This provides individuals with the means to invest in AR & VR devices and experiences. Furthermore, the Baltic governments have shown support for the development of the technology sector, providing funding and incentives for companies operating in the AR & VR space. In conclusion, the AR & VR market in the Baltics is growing and evolving due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

The region's tech-savvy population, strong gaming culture, and support for innovation create a favorable environment for the adoption and development of AR & VR technologies. As customer demand for immersive and interactive experiences continues to rise, the AR & VR market in the Baltics is expected to further expand in the coming years.

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).