VR Advertising - United Arab Emirates

United Arab Emirates

Highlights

In the United Arab Emirates, revenue in the VR Advertising market market is projected to reach US$566.5k in 2024.
The revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.44%, resulting in a projected market volume of US$608.5k by 2029.
While the projected market volume for 2024 stands at US$47.4m, it is important to note that most revenue is generated the United States.
In the United Arab Emirates, VR advertising is gaining traction as businesses increasingly leverage immersive experiences to enhance consumer engagement and brand storytelling.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Virtual reality (VR) advertising is gaining momentum in the United Arab Emirates (UAE), as more companies recognize its potential to engage consumers in an immersive and interactive way. With the UAE being a hub for technological innovation and a growing market for VR experiences, the demand for VR advertising is on the rise.

Customer preferences: Customers in the UAE are increasingly seeking unique and personalized experiences, and VR advertising offers just that. By leveraging VR technology, advertisers can create immersive campaigns that transport consumers into virtual worlds, allowing them to explore products and services in a more engaging and memorable way. This appeals to the tech-savvy population in the UAE, who are eager to embrace new technologies and experiences.

Trends in the market: One of the key trends in the VR advertising market in the UAE is the integration of VR into various industries. Companies are exploring how VR can enhance their marketing efforts in sectors such as real estate, tourism, automotive, and retail. For example, real estate developers are using VR to showcase properties to potential buyers, allowing them to virtually walk through the property and experience the space before making a purchase decision. Similarly, tourism companies are using VR to provide virtual tours of destinations, giving travelers a taste of what they can expect before booking their trips. Another trend is the increasing use of VR in events and exhibitions. With the UAE being a popular destination for conferences, trade shows, and exhibitions, companies are leveraging VR to create interactive and immersive experiences for attendees. This not only attracts more visitors but also helps brands stand out in a crowded marketplace.

Local special circumstances: The UAE has a young and tech-savvy population, which creates a favorable environment for the adoption of VR advertising. Moreover, the UAE government has been actively promoting innovation and technology as part of its vision to become a global hub for innovation. This has led to increased investment in VR technology and infrastructure, making it easier for companies to adopt VR advertising strategies.

Underlying macroeconomic factors: The UAE has a strong and growing economy, which provides a solid foundation for the development of the VR advertising market. The country has a high disposable income and a culture of consumerism, making it an attractive market for advertisers. Additionally, the UAE is a popular tourist destination, attracting millions of visitors each year. This presents an opportunity for companies to target both local residents and tourists with their VR advertising campaigns. In conclusion, the VR advertising market in the UAE is experiencing growth due to customer preferences for unique and personalized experiences, the integration of VR technology into various industries, the young and tech-savvy population, and the supportive government policies. As the market continues to evolve, we can expect to see more innovative and immersive VR advertising campaigns in the UAE.

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR advertising revenue, which includes advertising that is integrated into the virtual world within video games and videos.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, 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 data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. 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).