AR & VR

In the Nordics, revenue in the AR & VR market market is projected to reach US$796.4m in 2024.
This revenue is expected to showcase an annual growth rate (CAGR 2024-2029) of 8.99%, culminating in a projected market volume of US$1.2bn by 2029.
The largest market within this market in the Nordics is AR Software, which is anticipated to have a market volume of US$245.5m in 2024.
While the majority of revenue is generated the United States, the Nordics is also poised for significant contributions with a projected market volume of US$10.9bn in 2024.
By 2029, the number of users in the AR & VR market market in the Nordics is expected to amount to 23.9m users.
User penetration in this region will be 82.3% in 2024 and is projected to rise to 83.2% by 2029.
Furthermore, the average revenue per user (ARPU) in the Nordics is expected to reach US$34.5.
The Nordics are increasingly embracing AR and VR technologies, fostering innovative applications in education and healthcare, reflecting a strong commitment to digital transformation.

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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AR headsets and glasses, such as HoloLens
VR headsets, such as Meta Quest
AR apps, such as Snapchat or Pokémon Go
VR games that can be accessed via distribution platforms such as Steam
Apps that can be accessed via iPhones and Android phones

Cardboard VR headsets, such as Google VR
VR headsets for smartphones, such as Fiyapoo VR
Apps for Android phones that are solely available in stores such as Amazon Appstore and Microsoft Store
Apps available on other operating systems, such as Ubuntu
In-game subscriptions, such as Google Play Pass

The AR & VR market in Nordics is experiencing significant growth and development, driven by customer preferences for immersive and interactive experiences, as well as the region's unique local special circumstances and underlying macroeconomic factors. Customer preferences in the Nordics are shifting towards immersive and interactive experiences, which is fueling the demand for AR & VR technologies.

Consumers in the region are increasingly seeking out innovative and engaging ways to interact with content, whether it be in gaming, entertainment, or even in the workplace. This preference for immersive experiences is driving the adoption of AR & VR technologies, as they offer a new level of interactivity and immersion that traditional mediums cannot match. Trends in the AR & VR market in the Nordics are focused on the development of new applications and use cases.

The region is witnessing a surge in the use of AR & VR technologies in industries such as healthcare, education, and tourism. For example, in healthcare, AR & VR technologies are being used for medical training, patient rehabilitation, and even surgical procedures. In education, AR & VR are being utilized to create immersive learning environments that enhance student engagement and understanding.

And in tourism, AR & VR are being used to provide virtual tours and experiences, allowing visitors to explore destinations from the comfort of their own homes. Local special circumstances in the Nordics are also contributing to the growth of the AR & VR market. The region is known for its strong focus on innovation and technology, with a thriving startup ecosystem and a supportive business environment.

This has created a fertile ground for AR & VR companies to flourish, with many startups and established players in the region developing cutting-edge technologies and solutions. Additionally, the Nordics have a high level of digital literacy and a tech-savvy population, which further drives the adoption of AR & VR technologies. Underlying macroeconomic factors in the Nordics are also playing a role in the development of the AR & VR market.

The region has a strong economy, with high levels of disposable income and a willingness to invest in new technologies. This provides a favorable environment for AR & VR companies to attract funding and scale their operations. Furthermore, the Nordics have a well-developed infrastructure and a high level of internet penetration, which enables the seamless delivery of AR & VR experiences.

In conclusion, the AR & VR market in the Nordics is experiencing growth and development due to customer preferences for immersive and interactive experiences, as well as the region's local special circumstances and underlying macroeconomic factors. The shift towards immersive experiences, the development of new applications and use cases, the supportive business environment, and the strong economy are all contributing to the growth of the AR & VR market in the Nordics.

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).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Extended reality (XR) is an umbrella term for all immersive technologies including augmented reality (AR), virtual reality (VR), and mixed reality (MR), plus those that are yet to be created. XR technologies extend the reality we experience by either merging the virtual and “real” worlds or by creating a fully immersive experience. The global XR market is expected to grow considerably in the coming years, with XR innovation expected to be strong in the United States and across Asia, notably in Japan and China, as well as Germany and the United Kingdom in Europe.