AR & VR - Brazil

Brazil

In Brazil, revenue in the AR & VR market market is projected to reach US$1,034.0m in 2024.
Revenue in this sector is expected to show an annual growth rate (CAGR 2024-2029) of 9.66%, leading to a projected market volume of US$1,640.0m by 2029.
The largest market within this market in Brazil is AR Software, which is anticipated to have a market volume of US$358.2m in 2024.
Although most revenue is generated the United States, in Brazil is also a significant player with its own projected figures.
In the AR & VR market market, the number of users in Brazil is expected to amount to 108.2m users by 2029.
User penetration in Brazil will be 46.7% in 2024 and is expected to reach 48.5% by 2029.
The average revenue per user (ARPU) in Brazil is expected to amount to US$10.2.
Brazil's AR & VR market is rapidly evolving, driven by increasing investment in immersive technologies for education and entertainment sectors.

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 Brazil has been experiencing significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this development.

Customer preferences in Brazil have been shifting towards immersive and interactive experiences, which has fueled the demand for AR & VR technologies. Consumers are increasingly looking for unique and engaging experiences, and AR & VR provide them with the opportunity to explore virtual worlds and interact with digital content in a more immersive way. This has led to a growing interest in AR & VR applications in various industries, including gaming, entertainment, education, and healthcare.

Trends in the market have also played a crucial role in the development of the AR & VR market in Brazil. The increasing availability of affordable VR headsets and smartphones with AR capabilities has made these technologies more accessible to a wider audience. This has led to a greater adoption of AR & VR applications by both consumers and businesses.

Additionally, the development of innovative content and applications specifically tailored to the Brazilian market has further fueled the growth of the AR & VR industry. Local special circumstances in Brazil have also contributed to the development of the AR & VR market. Brazil is known for its vibrant and creative culture, which has fostered the growth of a thriving tech and entertainment industry.

This has provided a fertile ground for the development of AR & VR applications and content that cater to the unique preferences and interests of the Brazilian market. Furthermore, the government has been actively supporting the growth of the AR & VR industry through various initiatives and incentives, which has created a favorable environment for companies operating in this sector. Underlying macroeconomic factors have also played a role in the development of the AR & VR market in Brazil.

The country has experienced steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. This has created a larger market for AR & VR products and services, as consumers are more willing to invest in these technologies. Additionally, Brazil has a young and tech-savvy population, which has been quick to embrace new technologies and drive the demand for AR & VR experiences.

In conclusion, the AR & VR market in Brazil has been growing rapidly due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The demand for immersive and interactive experiences, the availability of affordable technologies, the development of tailored content, and the supportive government initiatives have all contributed to the development of a thriving AR & VR industry in Brazil.

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).