AR & VR

In Taiwan, revenue in the AR & VR market market is projected to reach US$443.7m in 2024.
Revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 9.36%, leading to a projected market volume of US$694.0m by 2029.
The largest market within this market in Taiwan is AR Software, which is anticipated to have a market volume of US$191.7m in 2024.
Most revenue is generated the United States, with a projected market volume of US$10.9bn in 2024.
In the AR & VR market market in Taiwan, the number of users is expected to reach 16.6m users by 2029.
User penetration in Taiwan will be 69.4% in 2024 and is projected to decrease to 69.2% by 2029.
The average revenue per user (ARPU) in Taiwan is expected to amount to US$26.7.
Taiwan is experiencing a surge in AR and VR adoption, driven by its strong tech ecosystem and increasing demand for immersive educational tools.

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.

AR headsets and glasses, such as HoloLens
VR headsets, such as Meta Quest
AR apps, such as Snapchat or Pokémon Go
VR games that can be accessed via distribution platforms such as Steam
Apps that can be accessed via iPhones and Android phones

Cardboard VR headsets, such as Google VR
VR headsets for smartphones, such as Fiyapoo VR
Apps for Android phones that are solely available in stores such as Amazon Appstore and Microsoft Store
Apps available on other operating systems, such as Ubuntu
In-game subscriptions, such as Google Play Pass

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.

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).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Extended reality (XR) is an umbrella term for all immersive technologies including augmented reality (AR), virtual reality (VR), and mixed reality (MR), plus those that are yet to be created. XR technologies extend the reality we experience by either merging the virtual and “real” worlds or by creating a fully immersive experience. The global XR market is expected to grow considerably in the coming years, with XR innovation expected to be strong in the United States and across Asia, notably in Japan and China, as well as Germany and the United Kingdom in Europe.