AR & VR - Taiwan

Taiwan

The AR & VR market in Taiwan is projected to reach a revenue of US$443.7m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 9.36%, resulting in a projected market volume of US$694.0m by 2029.
Among the market segments, AR Software holds the largest market share with a volume of US$191.7m in 2024.
The United States generates the highest revenue with a projected market volume of US$10,900.0m in the same year.
In terms of user base, the AR & VR market in Taiwan is expected to have 16.6m users users by 2029.
The user penetration rate is projected to be 69.4% in 2024 and is expected to increase to 69.2% by 2029.
The average revenue per user (ARPU) is estimated to be US$26.7.
It is important to note that the revenue values mentioned above only account for B2C revenues.
This means that the displayed market share represents only 0.00 of the total market (B2C & B2B) in Taiwan.
Taiwan's AR & VR market is experiencing rapid growth, driven by strong government support and a tech-savvy population.

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 Taiwan has been experiencing significant growth in recent years, driven by customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Taiwan have shown a strong preference for immersive and interactive experiences, which has fueled the demand for AR & VR technologies. The younger generation, in particular, is highly receptive to these technologies and is actively seeking out AR & VR content and applications. This preference for immersive experiences has also been influenced by the increasing popularity of gaming and entertainment industries in Taiwan.

Trends in the market: One of the key trends in the AR & VR market in Taiwan is the adoption of these technologies in various industries, including healthcare, education, tourism, and retail. In the healthcare sector, AR & VR technologies are being used for medical training, surgical simulations, and patient rehabilitation. In the education sector, these technologies are being utilized to create interactive learning experiences and virtual field trips. In the tourism industry, AR & VR are being used to enhance the visitor experience by providing virtual tours and interactive guides. In the retail sector, AR & VR technologies are being used to create virtual shopping experiences and enhance customer engagement. Another trend in the market is the increasing collaboration between local companies and international AR & VR technology providers. Taiwanese companies are partnering with global players to leverage their expertise and expand their reach in the global market. This collaboration has resulted in the development of innovative AR & VR solutions that cater to the specific needs of Taiwanese consumers.

Local special circumstances: Taiwan has a strong technology ecosystem, with a number of leading technology companies and research institutions. This has created a conducive environment for the development and adoption of AR & VR technologies. The government has also been actively promoting the growth of the AR & VR industry through various initiatives and incentives. These include funding programs, tax incentives, and the establishment of AR & VR research centers. These efforts have helped to attract investment and talent to the AR & VR sector in Taiwan.

Underlying macroeconomic factors: The strong economic growth and high disposable income levels in Taiwan have also contributed to the growth of the AR & VR market. As consumers have more disposable income, they are increasingly willing to invest in AR & VR devices and experiences. Additionally, the government's focus on digital transformation and innovation has created a supportive environment for the adoption of AR & VR technologies. In conclusion, the AR & VR market in Taiwan is experiencing significant growth due to customer preferences for immersive experiences, emerging trends in various industries, local special circumstances such as a strong technology ecosystem and government support, and underlying macroeconomic factors such as strong economic growth and high disposable income levels. This growth is expected to continue as the adoption of AR & VR technologies becomes more widespread across industries and consumer segments.

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).