AR & VR - Serbia

Serbia

In 2024, the projected revenue in the AR & VR market in Serbia is estimated to reach US$18.9m.
It is expected to show an annual growth rate (CAGR 2024-2029) of 9.30%, resulting in a projected market volume of US$29.4m by 2029.
Among the market segments, AR Software holds the largest market share with a volume of US$5.4m in 2024.
The United States generates the most revenue in the AR & VR market, with a projected market volume of US$10,900.0m in 2024.
By 2029, the number of users in Serbia is expected to reach 3,343.0k users.
The user penetration rate is projected to be 45.9% in 2024 and is expected to increase to 48.6% by 2029.
The average revenue per user (ARPU) is estimated to be US$5.8.
It's important to note that the revenue values mentioned here only account for B2C revenues.
This means that the displayed market share of B2C covers 0.00 of the total market (B2C & B2B).
Serbia is experiencing a surge in AR & VR adoption, with numerous tech startups emerging in the market.

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 Serbia 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: Serbian consumers are increasingly embracing AR & VR technologies, as they offer immersive and interactive experiences across various industries. The younger generation, in particular, is more open to adopting these technologies, as they are more tech-savvy and eager to explore new forms of entertainment and communication. Additionally, businesses in Serbia are recognizing the potential of AR & VR in enhancing customer experiences and improving operational efficiency, leading to increased demand for these technologies.

Trends in the market: One of the key trends in the AR & VR market in Serbia is the integration of these technologies into the gaming industry. Virtual reality gaming has gained popularity among Serbian gamers, offering a more immersive and realistic gaming experience. Furthermore, there is a growing trend of using AR & VR in the education sector, with schools and universities incorporating these technologies into their teaching methods to enhance learning outcomes. This trend is driven by the increasing recognition of the benefits of interactive and visual learning.

Local special circumstances: Serbia has a strong tech talent pool, with a growing number of skilled professionals in the fields of augmented reality and virtual reality. This has led to the establishment of several AR & VR startups and development studios in the country, driving innovation and pushing the boundaries of what is possible with these technologies. Additionally, the Serbian government has been supportive of the tech industry, providing incentives and support for startups and businesses in the AR & VR sector.

Underlying macroeconomic factors: The growing AR & VR market in Serbia is also influenced by underlying macroeconomic factors. The country has been experiencing steady economic growth and increasing foreign direct investment, which has led to improved infrastructure and technological advancements. This, in turn, has created a favorable environment for the adoption and development of AR & VR technologies. Furthermore, Serbia's strategic location in Southeast Europe makes it an attractive market for international companies looking to expand their AR & VR offerings in the region. In conclusion, the AR & VR market in Serbia is witnessing rapid growth and development, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. As Serbian consumers and businesses continue to embrace these technologies, the market is expected to further expand in the coming years.

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).