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VR Hardware - Saudi Arabia

Saudi Arabia

In Saudi Arabia, revenue in the VR Hardware market market is projected to reach US$20.0m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.73%, resulting in a projected market volume of US$30.4m by 2029.
While most revenue is generated China, the VR Hardware market market in Saudi Arabia is also experiencing growth.
In the VR Hardware market market, the number of users in Saudi Arabia is expected to amount to 337.8k users by 2029.
User penetration will be 0.7% in 2024 and is expected to hit 0.8% by 2029 in the country.
The average revenue per user (ARPU) in Saudi Arabia is expected to amount to US$74.2.
Saudi Arabia's burgeoning VR hardware market is increasingly influenced by government initiatives aimed at diversifying the economy and enhancing digital entertainment experiences.

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Analyst Opinion

The VR Hardware market in Saudi Arabia has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Saudi Arabia have played a crucial role in driving the growth of the VR Hardware market.

Saudi consumers are increasingly interested in immersive and interactive experiences, and VR technology provides a unique opportunity to fulfill this demand. The younger generation, in particular, is enthusiastic about VR gaming and entertainment, creating a strong consumer base for VR Hardware products. Trends in the market have also contributed to the growth of the VR Hardware market in Saudi Arabia.

Technological advancements have made VR Hardware more accessible and affordable, allowing a wider range of consumers to experience virtual reality. Additionally, the increasing availability of VR content, such as games, movies, and educational applications, has further fueled the demand for VR Hardware. Local special circumstances in Saudi Arabia have also played a role in the development of the VR Hardware market.

The Saudi government has been actively promoting the adoption of advanced technologies, including VR, as part of its Vision 2030 plan. This plan aims to diversify the country's economy and reduce its dependence on oil. As a result, there have been significant investments in the development of VR infrastructure and the establishment of VR-focused companies and startups in Saudi Arabia.

Underlying macroeconomic factors have also contributed to the growth of the VR Hardware market in Saudi Arabia. The country's strong economic growth and increasing disposable income have allowed consumers to spend more on leisure and entertainment activities, including VR experiences. Additionally, the high smartphone penetration rate in Saudi Arabia has facilitated the adoption of VR technology, as many VR Hardware devices can be paired with smartphones.

In conclusion, the VR Hardware market in Saudi Arabia is experiencing significant growth due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The increasing demand for immersive and interactive experiences, technological advancements, government support, and favorable economic conditions have all contributed to the development of the VR Hardware market in Saudi Arabia.

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).