AR & VR

Revenue in the AR & VR market market in the CIS is projected to reach US$552.3m in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 9.13%, leading to a projected market volume of US$855.0m by 2029.
The largest market within the CIS is AR Software, which is anticipated to have a market volume of US$192.3m in 2024.
While most revenue is generated the United States, the CIS is also expected to contribute significantly, with a projected market volume of US$10.9bn in 2024.
In the AR & VR market market within the CIS, the number of users is estimated to reach 63.5m users by 2029.
User penetration in the CIS will be 43.1% in 2024 and is expected to increase to 44.8% by 2029.
The average revenue per user (ARPU) in this market is projected to be US$8.9.
The CIS region is increasingly embracing AR and VR technologies, particularly in education and training sectors, enhancing interactive learning experiences and skill development.

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 CIS is experiencing significant growth and development, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the CIS region are playing a key role in the development of the AR & VR market.

Customers are increasingly seeking immersive and interactive experiences, and AR & VR technologies provide the perfect solution. The ability to explore virtual environments, interact with virtual objects, and experience simulations in real-time has captured the interest of consumers in the CIS region. Additionally, the younger generation in CIS countries are particularly attracted to AR & VR technologies, as they are more tech-savvy and open to embracing new experiences.

Trends in the market are also contributing to the growth of the AR & VR market in the CIS region. One notable trend is the increasing adoption of AR & VR technologies in various industries, including gaming, entertainment, education, healthcare, and real estate. Companies in these sectors are leveraging the power of AR & VR to enhance user experiences, improve training and education programs, and create innovative marketing campaigns.

This trend is driving the demand for AR & VR solutions in the CIS region. Local special circumstances in the CIS region are also influencing the development of the AR & VR market. The region has a rich cultural heritage and a strong emphasis on arts and entertainment.

This provides a fertile ground for the adoption of AR & VR technologies in the creative industries. Artists, designers, and filmmakers are using AR & VR to push the boundaries of their craft and create immersive experiences for their audiences. Furthermore, the CIS region has a growing tech startup ecosystem, which is fostering innovation and entrepreneurship in the AR & VR space.

This has led to the emergence of local AR & VR companies that are developing cutting-edge solutions tailored to the needs of the CIS market. Underlying macroeconomic factors are also driving the growth of the AR & VR market in the CIS region. The region has experienced steady economic growth in recent years, which has led to an increase in disposable income and consumer spending.

As a result, more people in the CIS region are able to afford AR & VR devices and experiences. Additionally, governments in CIS countries are recognizing the potential of AR & VR technologies to drive economic growth and are actively supporting the development of the AR & VR industry through funding and favorable policies. In conclusion, the AR & VR market in the CIS region is developing rapidly due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

The demand for immersive and interactive experiences, the adoption of AR & VR technologies in various industries, the rich cultural heritage and growing tech startup ecosystem, and the favorable macroeconomic conditions are all contributing to the growth of the AR & VR market in the CIS region.

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.