AR & VR - Portugal

Portugal

In Portugal, revenue in the AR & VR market market is projected to reach US$76.0m in 2024.
This revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 9.21%, leading to a projected market volume of US$118.0m by 2029.
The largest market within this market in Portugal is VR Hardware, which is anticipated to have a market volume of US$20.6m in 2024.
While most revenue is generated the United States with a projected market volume of US$10,900.0m in 2024, in Portugal is also positioning itself in this industry.
In the AR & VR market market, the number of users in Portugal is expected to reach 5,060.0k users by 2029.
User penetration is forecasted to be 50.1% in 2024 and is expected to remain at 50.1% by 2029.
The average revenue per user (ARPU) in Portugal is expected to be US$14.8.
In Portugal, the AR and VR market is witnessing a surge in innovative applications, particularly in education and tourism, reflecting the country's digital transformation efforts.

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 Portugal is experiencing significant growth and development, driven by changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Portugal are shifting towards immersive and interactive experiences, leading to a growing demand for AR & VR technologies.

Consumers are increasingly seeking unique and engaging ways to interact with products and services, and AR & VR offer innovative solutions to meet these demands. The ability to visualize and experience products before making a purchase is particularly appealing to Portuguese consumers, as it enhances the shopping experience and reduces the risk of buyer's remorse. Trends in the market indicate a strong focus on the gaming and entertainment sectors in Portugal.

The popularity of virtual reality gaming is on the rise, with more and more Portuguese gamers embracing the immersive experience offered by VR headsets. Additionally, the entertainment industry is exploring the potential of AR & VR technologies to create captivating and interactive experiences for audiences. This trend is driven by the increasing availability of high-quality content and the growing affordability of AR & VR devices.

Local special circumstances in Portugal are also contributing to the development of the AR & VR market. The country has a vibrant startup ecosystem, with many innovative companies focusing on AR & VR technologies. These startups are supported by government initiatives and investment programs that aim to foster entrepreneurship and technological advancements.

This favorable environment encourages the growth of the AR & VR market in Portugal, as it provides opportunities for collaboration, research, and development. Underlying macroeconomic factors further support the expansion of the AR & VR market in Portugal. The country has a strong economy and a high level of digital adoption, which creates a conducive environment for the adoption of AR & VR technologies.

Additionally, Portugal's tourism industry is a significant driver of the market, as AR & VR can enhance the visitor experience and attract more tourists to the country. The government's focus on promoting tourism and digital transformation further boosts the demand for AR & VR solutions. In conclusion, the AR & VR market in Portugal is experiencing growth and development due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

The demand for immersive and interactive experiences, particularly in the gaming and entertainment sectors, is driving the adoption of AR & VR technologies. Portugal's vibrant startup ecosystem, supportive government initiatives, strong economy, and focus on tourism contribute to the expansion of the market. As the market continues to evolve, we can expect further advancements and innovations in the AR & VR industry in Portugal.

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).