AR & VR - Nigeria

Nigeria

In 2024, the projected revenue in the AR & VR market is estimated to reach US$83.7m .
It is anticipated that the revenue will experience an annual growth rate of 9.67% from 2024 to 2029, resulting in a projected market volume of US$132.8m by 2029.
Among the various market segments, AR Advertising holds the largest market share with a volume of US$35.5m in 2024.
In terms of revenue generation, in the United States leads the way with a projected market volume of US$10,900.0m in 2024.
Looking at the number of users, it is expected that the AR & VR market will have approximately 61.8m users users by 2029.
The user penetration rate is projected to be 14.6% in 2024 and is expected to rise to 24.1% by 2029.
The average revenue per user (ARPU) is estimated to be US$2.5 .
It is important to note that the revenue values mentioned here only account for B2C revenues.
Therefore, these values do not include any B2B revenue.
According to the displayed market share of B2C, no portion of the total market (B2C & B2B) is covered.
In the Nigerian market, the AR & VR market industry is poised for growth and presents significant opportunities for revenue generation and user adoption.
Nigeria is experiencing a surge in AR & VR adoption, with industries such as education and tourism driving the market growth.

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.

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Analyst Opinion

The AR & VR market in Nigeria is experiencing significant growth and development, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Nigeria are shifting towards immersive and interactive experiences, which is fueling the demand for AR & VR technologies.

Consumers are increasingly seeking innovative and engaging ways to interact with products and services, and AR & VR provide unique solutions to meet these demands. Additionally, the younger population in Nigeria, who are more tech-savvy and open to new experiences, are driving the adoption of AR & VR technologies. Trends in the market indicate a growing interest and investment in AR & VR in Nigeria.

Companies across various industries, including gaming, entertainment, education, and healthcare, are incorporating AR & VR into their operations. This is leading to the development of new applications and content specifically tailored to the Nigerian market. Furthermore, the increasing availability of affordable AR & VR devices and the expansion of internet connectivity are making these technologies more accessible to a larger population in Nigeria.

Local special circumstances in Nigeria, such as the growing tech startup ecosystem and the government's focus on digital innovation, are also contributing to the development of the AR & VR market. Nigeria has a vibrant startup culture, with many entrepreneurs and innovators working on AR & VR solutions. The government is actively supporting the growth of the tech industry through initiatives and policies that promote digital innovation, which further encourages the adoption and development of AR & VR technologies.

Underlying macroeconomic factors in Nigeria, such as a growing middle class and increasing smartphone penetration, are creating a favorable environment for the AR & VR market. As more people in Nigeria gain access to smartphones and the internet, the potential market for AR & VR applications expands. The rising disposable income of the middle class also enables consumers to invest in AR & VR devices and experiences.

In conclusion, the AR & VR market in Nigeria is experiencing significant growth and development due to customer preferences for immersive experiences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The demand for AR & VR technologies is expected to continue to rise as more companies and consumers in Nigeria recognize the potential benefits and applications of these 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).