AR & VR - Singapore

Singapore

In Singapore, revenue in the AR & VR market market is projected to reach US$150.8m in 2024.
Revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 9.52%, leading to a projected market volume of US$237.6m by 2029.
The largest market within this market in Singapore is VR Hardware, which is expected to have a market volume of US$46.8m in 2024.
While the United States is projected to generate most revenue with a market volume of US$10,900.0m in 2024, the AR & VR market market in Singapore is also expected to grow significantly.
By 2029, the number of users in the AR & VR market market in Singapore is expected to amount to 5,216.0k users.
User penetration is projected to be 81.8% in 2024 and is anticipated to increase to 83.8% by 2029.
The average revenue per user (ARPU) in Singapore is expected to amount to US$30.4.
Singapore is rapidly emerging as a regional hub for AR and VR innovation, driven by strong government support and a vibrant tech ecosystem.

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 Singapore is experiencing significant growth and development, driven by customer preferences, market trends, and local special circumstances. Customer preferences in Singapore are increasingly favoring immersive and interactive experiences, leading to a growing demand for AR & VR technologies.

Consumers are seeking innovative and unique ways to engage with content, whether it be for entertainment, education, or business purposes. The ability of AR & VR to provide a more immersive and interactive experience aligns with these preferences, driving the adoption of these technologies in the market. Trends in the AR & VR market in Singapore reflect the global market, with a focus on areas such as gaming, entertainment, and training.

The gaming industry, in particular, has seen a surge in popularity, with AR & VR technologies enhancing the gaming experience by creating more realistic and interactive virtual worlds. Additionally, the entertainment sector is exploring the use of AR & VR to offer immersive experiences in areas such as live events and virtual tours. Furthermore, the training and education sectors are leveraging AR & VR to provide realistic simulations and virtual learning environments.

Local special circumstances in Singapore contribute to the development of the AR & VR market. Singapore is known for its strong technological infrastructure and support for innovation, making it an ideal environment for the growth of AR & VR technologies. The government has also shown support for the development of the industry through various initiatives and funding programs.

This support has attracted both local and international companies to invest in the AR & VR market in Singapore, leading to a vibrant ecosystem and driving further growth. Underlying macroeconomic factors also play a role in the development of the AR & VR market in Singapore. The country's strong economy and high disposable income levels provide consumers with the means to invest in AR & VR technologies.

Additionally, Singapore's position as a global business hub attracts companies looking to leverage AR & VR for various applications, such as marketing, training, and customer engagement. This creates a favorable market environment for the growth of the AR & VR industry. In conclusion, the AR & VR market in Singapore is experiencing growth and development driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

The increasing demand for immersive and interactive experiences, coupled with Singapore's supportive environment for innovation, positions the country as a key player in the AR & VR industry.

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).