AR & VR - Thailand

Thailand

In Thailand, revenue in the AR & VR market market is projected to reach US$254.1m in 2024.
Revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 9.86%, resulting in a projected market volume of US$406.6m by 2029.
The largest market within this market is AR Software, which will have a market volume of US$88.9m in 2024.
The majority of revenue is generated the United States, with a projected market volume of US$10,900.0m in 2024.
In the AR & VR market market, the number of users in Thailand is expected to reach 34.4m users by 2029.
User penetration is projected to be 48.5% in 2024 and is expected to decrease to 47.8% by 2029.
The average revenue per user (ARPU) is anticipated to amount to US$7.3.
Thailand's AR & VR market is experiencing significant growth, driven by increasing adoption in education and tourism sectors, enhancing immersive experiences for users.

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 Thailand is experiencing significant growth and development, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Thailand, there is a growing demand for immersive and interactive experiences, which has fueled the adoption of AR & VR technologies. Consumers are increasingly seeking unique and engaging content that can transport them to virtual worlds and enhance their real-world experiences. This customer preference for immersive experiences has led to the increased adoption of AR & VR technologies in various industries, including entertainment, gaming, tourism, and education.

Trends in the market: One of the key trends in the AR & VR market in Thailand is the integration of these technologies into the tourism industry. Thailand is a popular tourist destination, and AR & VR technologies are being used to enhance the visitor experience. Virtual tours, for example, allow tourists to explore popular attractions and landmarks virtually, providing a preview of what they can expect when they visit in person. This trend is driven by the desire to attract and engage tech-savvy tourists who are looking for unique and interactive experiences. Another trend in the market is the increasing use of AR & VR in the education sector. Virtual reality classrooms and interactive learning tools are being implemented to enhance the learning experience for students. These technologies provide a more immersive and engaging way to learn, allowing students to visualize complex concepts and interact with virtual objects. This trend is driven by the need to modernize the education system and cater to the digital native generation.

Local special circumstances: Thailand has a strong gaming culture, with a large number of gamers and game developers in the country. This has created a favorable environment for the growth of the AR & VR market. The gaming industry in Thailand is embracing AR & VR technologies, creating immersive gaming experiences and attracting a dedicated fan base. The presence of a vibrant gaming industry has also led to the development of local talent and expertise in AR & VR technologies.

Underlying macroeconomic factors: Thailand has a rapidly growing digital economy, with a high smartphone penetration rate and increasing internet connectivity. This provides a strong foundation for the adoption of AR & VR technologies, as these technologies rely on high-speed internet and mobile devices. The government of Thailand has also recognized the potential of the digital economy and has implemented policies to support its growth. This includes initiatives to promote innovation and entrepreneurship in the technology sector, which has further fueled the development of the AR & VR market. In conclusion, the AR & VR market in Thailand is growing and developing due to customer preferences for immersive experiences, trends in the market such as the integration of these technologies in the tourism and education sectors, local special circumstances including a strong gaming culture, and underlying macroeconomic factors such as the rapidly growing digital economy and government support for the technology sector. The future of the AR & VR market in Thailand looks promising, with continued growth and innovation expected in the coming years.

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).