AR & VR - BRICS

BRICS

In Brazil, revenue in the AR & VR market market is projected to reach US$12.2bn in 2025.
Revenue in this sector is expected to show an annual growth rate (CAGR 2025-2029) of 7.47%, resulting in a projected market volume of US$16.3bn by 2029.
The largest market within Brazil's market is VR Hardware, which is anticipated to have a market volume of US$4.1bn in 2025.
Although most revenue is generated the United States with a projected market volume of US$12,570.0m in 2025, Brazil is also experiencing growth in this area.
In the AR & VR market market, the number of users Brazil is expected to amount to 2,111.0m users by 2029.
User penetration Brazil will be 59.5% in 2025 and is expected to reach 62.9% by 2029.
The average revenue per user (ARPU) Brazil is expected to amount to US$6.2.
Brazil's AR & VR market is rapidly evolving, driven by increasing investment in educational technologies and immersive experiences that enhance cultural 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.
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Region comparison

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Analyst Opinion

The AR & VR market in BRICS is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in BRICS countries are increasingly drawn to AR & VR technology due to its immersive and interactive nature. The ability to experience virtual worlds and augmented realities is highly appealing to consumers, particularly in the entertainment and gaming industries. Additionally, the use of AR & VR in education and training has gained popularity, as it offers a more engaging and practical learning experience. The demand for AR & VR devices and applications is also driven by the growing interest in virtual tourism and virtual shopping experiences.

Trends in the market: In Brazil, the AR & VR market is witnessing growth due to the increasing adoption of these technologies in the healthcare and real estate sectors. The healthcare industry is utilizing AR & VR for medical training, patient education, and surgical simulations. Real estate companies are incorporating virtual reality to provide virtual property tours, allowing potential buyers to explore properties remotely. The gaming industry in Brazil is also a major driver of the AR & VR market, with a growing number of game developers creating immersive virtual reality experiences. In Russia, the AR & VR market is expanding rapidly, driven by the demand for virtual reality gaming and entertainment. The gaming industry in Russia is one of the largest in the world, and the integration of AR & VR technologies has enhanced the gaming experience for players. Additionally, the use of AR & VR in the tourism industry is gaining momentum, with virtual reality tours and experiences becoming increasingly popular among tourists. In India, the AR & VR market is growing due to the increasing adoption of these technologies in the education and healthcare sectors. AR & VR applications are being used in schools and universities to provide students with interactive and immersive learning experiences. In the healthcare industry, virtual reality is being used for medical training, surgical simulations, and patient rehabilitation. The gaming industry in India is also contributing to the growth of the AR & VR market, with a rising number of game developers incorporating virtual reality into their games. In China, the AR & VR market is booming due to the country's strong manufacturing capabilities and technological advancements. The Chinese government has been actively promoting the development and adoption of AR & VR technologies, which has led to a surge in the production and availability of AR & VR devices. The entertainment industry in China is a major driver of the AR & VR market, with virtual reality gaming and virtual reality cinemas gaining popularity among consumers. The education and healthcare sectors in China are also embracing AR & VR technologies for training and patient care.

Local special circumstances: Each BRICS country has its own unique set of circumstances that contribute to the development of the AR & VR market. In Brazil, the government has implemented policies and incentives to promote the growth of the technology sector, including AR & VR. In Russia, the strong gaming industry and interest in virtual reality have created a favorable environment for the AR & VR market. In India, the increasing penetration of smartphones and internet access has facilitated the adoption of AR & VR technologies. In China, the large population and rising middle class have created a significant consumer base for AR & VR products and services.

Underlying macroeconomic factors: The growth of the AR & VR market in BRICS countries is also influenced by underlying macroeconomic factors. These include factors such as economic growth, disposable income levels, technological advancements, and government initiatives to promote innovation and technology. As the economies of BRICS countries continue to grow and the middle class expands, there is an increasing demand for innovative and immersive technologies like AR & VR. Technological advancements and government support further drive the development and adoption of AR & VR in these countries. Overall, the AR & VR market in BRICS is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The increasing demand for immersive and interactive experiences, coupled with favorable market conditions and government support, are driving the expansion of the AR & VR market in these countries.

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).