AR & VR - New Zealand

New Zealand

In New Zealand, revenue in the AR & VR market market is projected to reach US$114.0m in 2024.
Revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 9.48%, leading to a projected market volume of US$179.3m by 2029.
The largest market within this market in New Zealand is VR Hardware, which is expected to have a market volume of US$34.3m in 2024.
Notably, the majority of revenue in the AR & VR market market originates from the United States, with a projected market volume of US$10,900.0m in 2024.
In New Zealand, the number of users in the AR & VR market market is expected to reach 4,065.0k users by 2029.
User penetration is projected to be 72.4% in 2024 and is anticipated to increase to 74.4% by 2029.
Additionally, the average revenue per user (ARPU) in New Zealand is expected to amount to US$29.9.
New Zealand's AR & VR market is increasingly focused on enhancing educational experiences, reflecting the country's commitment to innovation in learning environments.

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 New Zealand is experiencing significant growth and development, driven by customer preferences for immersive and interactive experiences, as well as advancements in technology. Customer preferences in New Zealand are shifting towards more engaging and interactive experiences, which has fueled the demand for AR & VR technologies.

Consumers are increasingly seeking unique and memorable experiences that go beyond traditional forms of entertainment. AR & VR technologies offer the opportunity to transport users to virtual worlds, providing them with a sense of presence and interactivity that is unparalleled. This has led to a growing demand for AR & VR content, applications, and devices in the country.

Trends in the AR & VR market in New Zealand are closely aligned with global trends, but with some unique characteristics. One notable trend is the increasing adoption of AR & VR technologies in the tourism and hospitality industry. New Zealand is known for its stunning natural landscapes and adventure tourism, and AR & VR technologies offer the opportunity to enhance the visitor experience.

From virtual tours of popular attractions to immersive gaming experiences, AR & VR are being used to create unique and engaging experiences for tourists in New Zealand. Another trend in the market is the growing use of AR & VR in the education sector. Schools and universities in New Zealand are incorporating AR & VR technologies into their curriculum to enhance learning experiences.

Virtual reality field trips, interactive simulations, and immersive storytelling are just a few examples of how AR & VR are being used to create more engaging and effective educational experiences. Local special circumstances also contribute to the development of the AR & VR market in New Zealand. The country has a strong tech industry and a culture of innovation, which has fostered the growth of AR & VR startups and companies.

This has led to a vibrant ecosystem of developers, content creators, and hardware manufacturers, driving innovation and competition in the market. Underlying macroeconomic factors, such as the increasing affordability and accessibility of AR & VR devices, also play a role in the market's development. As the cost of AR & VR devices continues to decrease and the technology becomes more mainstream, more consumers in New Zealand are able to afford and access these technologies.

This has led to a larger customer base and increased demand for AR & VR products and services. In conclusion, the AR & VR market in New Zealand is experiencing significant growth and development due to customer preferences for immersive experiences, global trends, local special circumstances, and underlying macroeconomic factors. The market is expected to continue to expand as technology advances and more industries and sectors adopt AR & VR technologies.

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).