AR & VR - Switzerland

Switzerland

In Switzerland, revenue within the AR & VR market market is projected to reach US$285.6m in 2024.
The revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 9.05%, leading to a projected market volume of US$440.4m by 2029.
The largest market of this market in Switzerland is AR Software, which is estimated to have a market volume of US$83.6m in 2024.
While most revenue in the AR & VR market market is generated the United States, in Switzerland is also witnessing significant activity with a projected market volume of US$10,900.0m in 2024.
By 2029, the number of users in the AR & VR market market in Switzerland is expected to reach 7.7m users.
User penetration in Switzerland will be 80.6% in 2024 and is projected to increase to 84.2% by 2029.
The average revenue per user (ARPU) in Switzerland is expected to amount to US$40.1.
Switzerland is witnessing a significant rise in the adoption of AR and VR technologies across healthcare and education sectors, enhancing training and patient care experiences.

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 Switzerland is experiencing steady growth and development, driven by customer preferences for immersive and interactive experiences, as well as the increasing adoption of these technologies across various industries.

Customer preferences: Swiss customers have shown a strong interest in AR & VR technologies, particularly in the entertainment and gaming sectors. The demand for immersive gaming experiences has been on the rise, with customers seeking more realistic and interactive gameplay. Additionally, the use of AR & VR in the tourism industry has gained popularity, as customers are looking for unique and engaging ways to explore Switzerland's scenic landscapes and cultural heritage.

Trends in the market: One of the key trends in the AR & VR market in Switzerland is the integration of these technologies in the healthcare sector. Virtual reality is being used for medical training and simulation, allowing healthcare professionals to practice complex procedures in a safe and controlled environment. AR is also being utilized for surgical navigation and patient education, enhancing the overall quality of healthcare services. Another trend is the incorporation of AR & VR in the education sector, where these technologies are being used to create interactive and immersive learning experiences. This trend is driven by the need for innovative and engaging teaching methods, as well as the growing recognition of the benefits of experiential learning.

Local special circumstances: Switzerland's strong focus on innovation and technology has created a favorable environment for the growth of the AR & VR market. The country is home to several renowned research institutions and technology companies, which are actively involved in the development and advancement of these technologies. Additionally, Switzerland's high standard of living and disposable income levels contribute to the demand for premium AR & VR experiences.

Underlying macroeconomic factors: The Swiss economy is known for its stability and robustness, which provides a solid foundation for the growth of the AR & VR market. The country's strong financial sector and favorable business environment attract investments and support the development of innovative technologies. Furthermore, Switzerland's well-established infrastructure and connectivity make it an ideal market for AR & VR adoption. The government's support for research and development initiatives also plays a significant role in driving the growth of the AR & VR market in Switzerland. In conclusion, the AR & VR market in Switzerland is experiencing growth and development, driven by customer preferences for immersive experiences and the increasing adoption of these technologies across various industries. The integration of AR & VR in healthcare and education sectors, as well as Switzerland's focus on innovation and technology, contribute to the market's expansion. The country's stable economy and supportive business environment further facilitate the growth of the AR & VR market in Switzerland.

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).