AR & VR

In Saudi Arabia, revenue in the AR & VR market market is projected to reach US$107.6m in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 9.43%, resulting in a projected market volume of US$168.8m by 2029.
The largest market within this domain is AR Software, which is anticipated to have a market volume of US$31.6m in 2024.
Although most revenue is generated the United States with a projected market volume of US$10.9bn in 2024, in Saudi Arabia is also expected to contribute significantly.
In the AR & VR market market, the number of users in Saudi Arabia is anticipated to amount to 22.1m users by 2029.
User penetration will be 55.4% in 2024 and is expected to reach 55.4% by 2029.
The average revenue per user (ARPU) in Saudi Arabia is expected to amount to US$5.2.
Saudi Arabia's AR & VR market is rapidly evolving, driven by government initiatives and a growing interest in immersive technologies for education and entertainment.

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.

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 Saudi Arabia is experiencing significant growth and development, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Saudi Arabia are playing a crucial role in the development of the AR & VR market.

Saudi consumers are increasingly seeking immersive and interactive experiences, and AR & VR technologies provide exactly that. The younger generation, in particular, is highly interested in these technologies and is willing to invest in AR & VR devices and content. Additionally, the growing popularity of gaming and entertainment in Saudi Arabia is driving the demand for AR & VR experiences.

Trends in the market further contribute to the development of the AR & VR industry in Saudi Arabia. The increasing availability of affordable AR & VR devices, such as headsets and smartphones, has made these technologies more accessible to the general public. This has led to a rise in the adoption of AR & VR applications across various sectors, including education, healthcare, retail, and real estate.

Furthermore, the government's push for digital transformation and innovation is creating a favorable environment for AR & VR companies to thrive. Local special circumstances also play a significant role in the growth of the AR & VR market in Saudi Arabia. The country has a young and tech-savvy population, which is eager to embrace new technologies.

Moreover, Saudi Arabia has a strong entrepreneurial ecosystem, with numerous startups and tech companies focusing on AR & VR solutions. This vibrant startup culture fosters innovation and drives the development of the AR & VR market. Underlying macroeconomic factors contribute to the growth of the AR & VR industry in Saudi Arabia.

The country's Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil, has identified the technology sector as a key driver of economic growth. As a result, the government has been actively supporting the development of the AR & VR industry through various initiatives and investments. Additionally, the increasing internet penetration and smartphone adoption rates in Saudi Arabia provide a solid foundation for the expansion of AR & VR applications.

In conclusion, the AR & VR market in Saudi Arabia is experiencing rapid growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The increasing demand for immersive experiences, the availability of affordable devices, the government's support, and the country's young and tech-savvy population are all contributing to the flourishing AR & VR industry in Saudi Arabia.

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.