AR & VR - Kenya

Kenya

In Kenya, revenue in the AR & VR market market is projected to reach US$23.5m in 2024.
This revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 9.36%, resulting in a projected market volume of US$36.8m by 2029.
The largest market within this market in Kenya is AR Advertising, which is anticipated to have a market volume of US$10.1m in 2024.
Despite the global picture, most revenue is generated the United States, with a projected market volume of US$10,900.0m in 2024.
In the AR & VR market market, the number of users in Kenya is expected to amount to 14,840.0k users by 2029.
User penetration will be 16.9% in 2024 and is expected to increase to 24.0% by 2029.
The average revenue per user (ARPU) in Kenya is expected to amount to US$2.5.
Kenya's AR & VR market is rapidly evolving, driven by increasing investments in technology and a growing demand for immersive educational 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 Kenya is experiencing significant growth and development, driven by customer preferences for immersive and interactive experiences, as well as the increasing availability of advanced technology. Customer preferences in the AR & VR market in Kenya are shifting towards immersive and interactive experiences.

Consumers are seeking unique and engaging experiences that go beyond traditional forms of entertainment. This has led to a growing demand for AR and VR applications in various industries such as gaming, tourism, real estate, and education. Additionally, the younger generation in Kenya, who are more tech-savvy and open to new experiences, are driving the adoption of AR and VR technologies.

One of the key trends in the AR & VR market in Kenya is the increasing availability of advanced technology. The affordability and accessibility of VR headsets and AR-enabled smartphones have made it easier for consumers to experience these technologies. Additionally, the development of high-quality content and applications specifically tailored for the Kenyan market has contributed to the growth of the AR & VR market.

Local special circumstances in Kenya, such as the rapid expansion of the tech industry and the increasing investment in digital infrastructure, have also contributed to the development of the AR & VR market. The government of Kenya has recognized the potential of AR and VR technologies in driving economic growth and has implemented policies to support the growth of the tech industry. This has attracted both local and international companies to invest in the development of AR and VR solutions in Kenya.

Underlying macroeconomic factors, such as the increasing smartphone penetration and internet connectivity in Kenya, have also played a significant role in the growth of the AR & VR market. The widespread availability of smartphones and internet access has created a large user base for AR and VR applications. Additionally, the growing middle class in Kenya has disposable income to spend on entertainment and leisure activities, driving the demand for AR and VR experiences.

In conclusion, the AR & VR market in Kenya is experiencing rapid growth and development due to customer preferences for immersive experiences, the increasing availability of advanced technology, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, we can expect to see further innovation and expansion in the AR & VR industry in Kenya.

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).