AR & VR - Vietnam

Vietnam

In Vietnam, revenue in the AR & VR market market is projected to reach US$123.0m in 2024.
This revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 9.61%, leading to a projected market volume of US$194.6m by 2029.
The largest market within this market in Vietnam is AR Software, which is anticipated to have a market volume of US$37.1m in 2024.
Despite the significant market potential in Vietnam, 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 in Vietnam, the number of users is expected to total 44.7m users by 2029.
User penetration in Vietnam will be 42.9% in 2024 and is anticipated to reach 43.7% by 2029.
Furthermore, the average revenue per user (ARPU) in Vietnam is expected to amount to US$2.9.
Vietnam's burgeoning tech landscape is fostering innovative applications of AR and VR, particularly in education and gaming, enhancing user engagement and experience.

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 Vietnam is experiencing significant growth and development. Customer preferences are shifting towards immersive and interactive experiences, driving the demand for AR & VR technologies.

Additionally, local special circumstances and underlying macroeconomic factors are contributing to the expansion of this market. Customer preferences in Vietnam are increasingly focused on immersive and interactive experiences. Consumers are seeking more engaging ways to interact with content and products, and AR & VR technologies provide a solution to this demand.

The ability to explore virtual environments, try on virtual products, and experience virtual reality gaming is attracting a growing number of customers in Vietnam. As a result, businesses are investing in AR & VR technologies to enhance customer engagement and provide unique experiences. Trends in the AR & VR market in Vietnam are driven by global and regional developments.

Worldwide, there is a growing adoption of AR & VR technologies across various industries, including gaming, entertainment, education, and healthcare. This trend is also evident in Vietnam, where businesses are recognizing the potential of AR & VR to transform their operations and enhance customer experiences. The increasing availability of affordable AR & VR devices and content is further fueling the growth of this market in Vietnam.

Local special circumstances in Vietnam are contributing to the development of the AR & VR market. The country has a young and tech-savvy population, which is eager to embrace new technologies and experiences. This demographic factor, coupled with the rising middle class and increasing disposable income, creates a favorable environment for the adoption of AR & VR technologies.

Furthermore, the government of Vietnam is actively promoting the development of the digital economy, including the AR & VR sector, through various initiatives and policies. Underlying macroeconomic factors are also driving the growth of the AR & VR market in Vietnam. The country's strong economic growth and rapid urbanization are creating opportunities for businesses to invest in innovative technologies.

As more people move to urban areas and seek entertainment and leisure activities, the demand for AR & VR experiences is expected to increase. Additionally, the increasing penetration of smartphones and internet connectivity in Vietnam provides a platform for the delivery of AR & VR content. In conclusion, the AR & VR market in Vietnam is experiencing significant growth and development due to shifting customer preferences, global and regional trends, local special circumstances, and underlying macroeconomic factors.

Businesses in Vietnam are investing in AR & VR technologies to enhance customer engagement and provide immersive experiences. With the government's support and the country's favorable economic conditions, the AR & VR market in Vietnam is expected to continue its expansion 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).