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VR Hardware - Hong Kong

Hong Kong

In Hong Kong, revenue in the VR Hardware market market is projected to reach US$46.0m in 2024.
This revenue is expected to grow at an annual growth rate (CAGR 2024-2029) of 9.29%, leading to an anticipated market volume of US$71.8m by 2029.
Although most revenue in the VR Hardware market market is generated China, the VR Hardware market market in Hong Kong is also showing promising figures.
The number of users in the VR Hardware market market in Hong Kong is expected to amount to 614.2k users by 2029.
User penetration in Hong Kong will be 6.5% in 2024 and is projected to reach 8.2% by 2029.
Furthermore, the average revenue per user (ARPU) in Hong Kong is expected to amount to US$93.8.
Hong Kong's VR hardware market is experiencing a surge in demand as businesses increasingly adopt immersive technologies for training and customer engagement.

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Analyst Opinion

The VR Hardware market in Hong Kong is experiencing significant growth and development.

Customer preferences: Customers in Hong Kong are increasingly interested in VR Hardware due to its immersive and interactive nature. The younger generation, in particular, is driving the demand for VR Hardware as they seek new and exciting experiences. Additionally, with the rise of e-sports and gaming culture in Hong Kong, there is a growing demand for VR Hardware among gamers who are looking for more realistic and immersive gameplay.

Trends in the market: One of the key trends in the VR Hardware market in Hong Kong is the increasing adoption of VR headsets for entertainment purposes. VR arcades and gaming centers have been popping up across the city, offering customers the opportunity to experience VR games and simulations. This trend is fueled by the desire for unique and thrilling experiences, as well as the growing popularity of social VR experiences where friends can play together in a virtual environment. Another trend in the market is the integration of VR technology into other industries such as education and tourism. VR is being used in schools and universities to enhance the learning experience by providing virtual field trips and interactive lessons. In the tourism industry, VR is being used to showcase destinations and attractions, allowing potential visitors to have a virtual tour before making a travel decision.

Local special circumstances: Hong Kong's compact urban environment and limited space pose challenges for the VR Hardware market. The high cost of real estate makes it difficult for VR arcades and gaming centers to find suitable locations. However, this has also led to the rise of mobile VR solutions, where users can experience VR on their smartphones using affordable headsets. This allows for a more accessible and portable VR experience, catering to the needs of customers in Hong Kong.

Underlying macroeconomic factors: The growing popularity of VR Hardware in Hong Kong is also influenced by the overall economic development of the city. Hong Kong has a strong and dynamic economy, with a high level of disposable income among its residents. This enables consumers to afford VR Hardware and drives the demand for new and innovative products. Additionally, Hong Kong's status as an international business hub attracts tech companies and startups, which further contributes to the development of the VR Hardware market. In conclusion, the VR Hardware market in Hong Kong is experiencing growth and development due to the increasing customer preferences for immersive experiences, the integration of VR technology into various industries, the local special circumstances of limited space, and the underlying macroeconomic factors of a strong economy and high disposable income.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR hardware revenue, which includes digital spending on hardware (stand-alone and tethered units) that enables consumers to dive into the virtual world.

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).