AR & VR - Spain

Spain

In Spain, revenue in the AR & VR market market is projected to reach US$749.6m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.57%, resulting in a projected market volume of US$1,184.0m by 2029.
The largest market in Spain is VR Hardware, with a market volume of US$245.8m in 2024.
While most revenue is generated the United States, the AR & VR market market in Spain is also expanding.
In this market, the number of users in Spain is expected to amount to 36.3m users by 2029.
User penetration in Spain will be 73.6% in 2024 and is expected to reach 76.9% by 2029.
The average revenue per user (ARPU) in Spain is expected to amount to US$21.4.
Spain's AR and VR market is increasingly focusing on immersive tourism experiences, enhancing cultural heritage engagement through innovative technologies and digital storytelling.

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 Spain has been experiencing steady growth in recent years, driven by increasing customer preferences for immersive and interactive experiences.

Customer preferences: Customers in Spain are increasingly seeking out immersive and interactive experiences, which has fueled the demand for AR and VR technologies. With the growing popularity of gaming, entertainment, and tourism sectors, consumers are looking for innovative and engaging ways to experience these industries. Additionally, there is a rising interest in using AR and VR technologies in education and training, as they offer a more interactive and realistic learning experience.

Trends in the market: One of the key trends in the AR & VR market in Spain is the adoption of these technologies by businesses across various industries. Companies are leveraging AR and VR to enhance customer experiences, improve training programs, and boost productivity. For example, in the retail sector, businesses are using AR to create virtual fitting rooms and enhance the shopping experience, while in the real estate industry, VR is being used to provide virtual property tours. Additionally, there is a growing trend of using AR and VR in healthcare for medical training, patient education, and therapy. Another trend in the market is the development of AR and VR content and applications specific to the Spanish market. Local developers and content creators are focusing on creating experiences that cater to the preferences and interests of Spanish consumers. This includes developing AR and VR applications that showcase Spanish culture, history, and tourist attractions.

Local special circumstances: Spain is known for its rich cultural heritage and vibrant tourism industry. This presents a unique opportunity for the AR & VR market, as these technologies can be used to enhance the tourist experience by providing virtual tours, interactive exhibits, and historical reenactments. The use of AR and VR in tourism allows visitors to have a more immersive and engaging experience, while also promoting the country's cultural and historical assets.

Underlying macroeconomic factors: The growth of the AR & VR market in Spain is also influenced by several macroeconomic factors. The country has a strong and stable economy, which provides a favorable environment for businesses to invest in emerging technologies. Additionally, the increasing availability of high-speed internet and the widespread adoption of smartphones have contributed to the growth of the AR & VR market, as these technologies are essential for delivering immersive experiences. In conclusion, the AR & VR market in Spain is experiencing growth due to increasing customer preferences for immersive and interactive experiences. Businesses across various industries are adopting these technologies to enhance customer experiences, improve training programs, and boost productivity. The development of AR and VR content specific to the Spanish market and the country's vibrant tourism industry further contribute to the growth of the market. The strong and stable economy, coupled with the increasing availability of high-speed internet and smartphones, provides a favorable environment for the AR & VR market to thrive in Spain.

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).