VR Software - China

China

Highlights

Revenue in the VR Software market market in China is projected to reach US$896.7m in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 7.88%, resulting in a projected market volume of US$1.3bn by 2029.
While most revenue is currently generated the United States, the projected market volume in China is anticipated to be US$990.3m in 2024.
In the VR Software market market, the number of users in China is expected to amount to 44.5m users by 2029.
User penetration in China will be 2.6% in 2024 and is expected to increase to 3.1% by 2029.
The average revenue per user (ARPU) in this market is expected to amount to US$23.7.
China's VR software market is rapidly evolving, driven by increasing investment from tech giants and a growing consumer appetite for immersive experiences.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The VR Software market in China is experiencing significant growth and development.

Customer preferences: Chinese consumers have shown a strong interest in virtual reality (VR) technology, contributing to the growth of the VR Software market. The younger generation, in particular, is highly engaged with VR, seeking immersive and interactive experiences. Additionally, the increasing popularity of gaming and entertainment applications has fueled the demand for VR Software in China.

Trends in the market: One of the key trends in the VR Software market in China is the adoption of VR in various industries beyond gaming and entertainment. Companies are leveraging VR technology for training purposes, virtual tours, and product visualization. This trend is driven by the desire to enhance customer experiences, improve efficiency, and reduce costs. As a result, industries such as real estate, tourism, education, and healthcare are increasingly incorporating VR Software into their operations. Another trend in the VR Software market is the development of mobile VR applications. With the widespread use of smartphones in China, mobile VR has gained popularity as it offers a more accessible and affordable VR experience. This trend has led to the growth of mobile VR gaming and entertainment applications, as well as the emergence of VR content creation tools for smartphones.

Local special circumstances: China has a large and rapidly growing middle class with increasing disposable income. This has created a favorable market for VR Software as more consumers have the financial means to invest in VR devices and applications. Additionally, the Chinese government has been supportive of the VR industry, providing subsidies and incentives to promote its development. These factors have contributed to the expansion of the VR Software market in China.

Underlying macroeconomic factors: The growth of the VR Software market in China can be attributed to several underlying macroeconomic factors. China has a strong manufacturing base, which has facilitated the production of affordable VR devices and accessories. This has made VR technology more accessible to a wider range of consumers. Furthermore, China has a large population and a high internet penetration rate, providing a large potential customer base for VR Software. The country's robust e-commerce infrastructure has also played a significant role in the distribution and sales of VR Software. In conclusion, the VR Software market in China is experiencing rapid growth and development. Customer preferences for immersive experiences and the increasing adoption of VR technology in various industries are driving the market. The favorable local special circumstances, such as the growing middle class and government support, further contribute to the expansion of the market. Additionally, underlying macroeconomic factors, including China's manufacturing capabilities and e-commerce infrastructure, support the growth of the VR Software market in China.

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR software revenue, which includes revenues from video games and VR videos consumed via stand-alone or tethered units.

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:

F2The 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).