AR & VR - Finland

Finland

In Finland, revenue in the AR & VR market market is projected to reach €100.3m in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 8.84%, resulting in a projected market volume of €153.2m by 2029.
The largest market in Finland is AR Software, with a market volume of €30.1m in 2024.
While most revenue is generated the United States with a projected market volume of €10,000.0m in 2024, in Finland is also expected to contribute significantly to the AR & VR market market.
In Finland, the number of users in the AR & VR market market is expected to amount to 4,177.0k users by 2029.
User penetration in Finland will be 72.3% in 2024 and is expected to hit 75.1% by 2029.
The average revenue per user (ARPU) in Finland is expected to amount to €25.0.
Finland is increasingly recognized for its innovative AR & VR startups, fostering a vibrant ecosystem that enhances education and gaming experiences.

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 Finland is experiencing significant growth and development in recent years. Customer preferences for immersive and interactive experiences, coupled with advancements in technology and local special circumstances, have contributed to the expansion of this market.

Customer preferences: In Finland, there is a growing demand for AR & VR technologies among consumers. Customers are increasingly seeking immersive experiences that enhance their interactions with products and services. The ability to visualize and interact with virtual objects in a realistic manner has become highly desirable. This preference is driven by the desire for more engaging and personalized experiences, both in entertainment and professional settings.

Trends in the market: One key trend in the AR & VR market in Finland is the adoption of these technologies in various industries. Companies are leveraging AR & VR to enhance their product development processes, improve training programs, and create unique marketing campaigns. For example, in the gaming industry, virtual reality headsets are becoming more popular, allowing players to fully immerse themselves in virtual worlds. Additionally, the healthcare sector is utilizing AR & VR to simulate medical procedures and train healthcare professionals. These trends indicate a growing recognition of the potential benefits that AR & VR can offer across different sectors.

Local special circumstances: Finland has a strong technology infrastructure and a highly educated workforce, which has contributed to the growth of the AR & VR market. The country is known for its expertise in software development and innovation, making it an ideal environment for AR & VR companies to thrive. Additionally, Finland has a culture that embraces new technologies and encourages experimentation, creating a favorable environment for the adoption of AR & VR solutions. These local special circumstances have fostered a vibrant ecosystem of startups and established companies in the AR & VR industry.

Underlying macroeconomic factors: The growth of the AR & VR market in Finland is also influenced by underlying macroeconomic factors. The country has a stable and prosperous economy, which provides a strong foundation for businesses to invest in new technologies. Furthermore, Finland has a high level of digitalization and internet penetration, enabling widespread access to AR & VR applications. The government has also been supportive of the technology sector, providing funding and incentives for companies to innovate and grow. These macroeconomic factors create a conducive environment for the development and adoption of AR & VR technologies in Finland. In conclusion, the AR & VR market in Finland is experiencing growth and development due to customer preferences for immersive experiences, trends in various industries, local special circumstances, and underlying macroeconomic factors. As technology continues to advance and customer expectations evolve, the AR & VR market in Finland is likely to expand further, offering new opportunities for businesses and consumers alike.

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).