AR & VR - D-A-CH

D-A-CH

The AR & VR market in the D-A-CH region is projected to reach a revenue of US$2,431.0m by 2024.
It is expected to grow at an annual rate of 9.08%, resulting in a projected market volume of US$3,754.0m by 2029.
Currently, the largest market within this segment is AR Software, with a market volume of US$770.7m in 2024.
The United States generates the most revenue in the AR & VR market, with a projected market volume of US$10,900.0m in 2024.
In terms of user base, the number of AR & VR market users is expected to reach 64.7m users by 2029.
User penetration is predicted to be 60.6% in 2024 and is expected to increase to 64.0% by 2029.
The average revenue per user (ARPU) is estimated to be US$39.7.
It is important to note that the revenue values mentioned here only account for B2C revenues.
Therefore, the displayed market share represents only 0.00 of the total market (B2C & B2B).
In Germany, the AR & VR market is thriving with a strong focus on industrial applications and training simulations.

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 D-A-CH is experiencing significant growth and development, driven by customer preferences for immersive experiences, advancements in technology, and the increasing adoption of AR & VR across various industries.

Customer preferences: Customers in the D-A-CH region are increasingly seeking immersive and interactive experiences, which is driving the demand for AR & VR technologies. The younger generation, in particular, is highly interested in virtual reality gaming and entertainment, while businesses are exploring the potential of augmented reality for marketing and customer engagement.

Trends in the market: In Germany, the AR & VR market is witnessing strong growth in the gaming and entertainment sectors. Virtual reality gaming is becoming increasingly popular, with consumers seeking more realistic and immersive experiences. Additionally, augmented reality is being used by businesses to enhance marketing campaigns and offer interactive experiences to customers. In Austria, the AR & VR market is expanding in the education and training sectors. Virtual reality is being utilized in classrooms to create interactive and engaging learning environments, while augmented reality is being used for training purposes in industries such as manufacturing and healthcare. In Switzerland, the AR & VR market is seeing significant growth in the healthcare and tourism sectors. Virtual reality is being used for medical training and therapy, allowing healthcare professionals to simulate realistic scenarios. In the tourism industry, augmented reality is being utilized to enhance visitor experiences and provide interactive information about attractions.

Local special circumstances: The D-A-CH region has a strong focus on innovation and technology, which has contributed to the growth of the AR & VR market. Germany, in particular, has a thriving tech industry and is home to several AR & VR startups and research institutions. This ecosystem of innovation has created a conducive environment for the development and adoption of AR & VR technologies.

Underlying macroeconomic factors: The strong economy and high disposable income in the D-A-CH region have played a significant role in driving the growth of the AR & VR market. Consumers have the financial means to invest in AR & VR devices and experiences, while businesses have the resources to explore and implement these technologies in their operations. Furthermore, the D-A-CH region has a well-developed infrastructure and a high level of digitalization, which has facilitated the adoption of AR & VR technologies. The presence of reliable internet connectivity and advanced mobile networks has made it easier for consumers and businesses to access and utilize AR & VR applications. In conclusion, the AR & VR market in D-A-CH is experiencing rapid growth due to customer preferences for immersive experiences, advancements in technology, and the supportive macroeconomic factors in the region. As the demand for AR & VR continues to increase, we can expect further developments and innovations in this market.

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).