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VR Software - MENA

MENA

Revenue in the VR Software market is projected to reach US$84.3m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.80%, resulting in a projected market volume of US$128.6m by 2029.
With a projected market volume of US$990.3m in 2024, most revenue is generated in the United States.
In the VR Software market, the number of users is expected to amount to 4.3m users by 2029.
User penetration will be 1.0% in 2024 and is expected to hit 1.2% by 2029.
The average revenue per user (ARPU) is expected to amount to US$23.5.

Market

Region

Region comparison

Currency

Analyst Opinion

The VR Software market in the Middle East and North Africa (MENA) region is experiencing significant growth and development.

Customer preferences: Customers in the MENA region are increasingly embracing virtual reality (VR) technology, as it offers immersive and interactive experiences across various industries. The demand for VR software is driven by the growing interest in gaming, entertainment, and tourism sectors. Additionally, businesses are leveraging VR technology for training and simulation purposes, enhancing the overall customer experience.

Trends in the market: One of the key trends in the VR Software market in MENA is the adoption of VR technology in the gaming industry. The region has a large and enthusiastic gaming community, which is driving the demand for VR software. Game developers are capitalizing on this trend by creating VR-compatible games that provide a more immersive and realistic gaming experience. This trend is expected to continue as the gaming industry continues to evolve and innovate. Another trend in the market is the increasing use of VR technology in the tourism sector. The MENA region is known for its rich cultural heritage and tourist attractions. VR software is being used to create virtual tours and experiences, allowing tourists to explore historical sites, museums, and natural wonders from the comfort of their homes. This trend is particularly relevant in the current global pandemic situation, where travel restrictions have limited physical tourism.

Local special circumstances: The MENA region has a young and tech-savvy population, which is driving the adoption of VR software. With a large percentage of the population under the age of 30, there is a strong demand for innovative and immersive experiences. This demographic factor, coupled with the region's growing disposable income and increasing internet penetration, creates a favorable environment for the growth of the VR Software market in MENA. Furthermore, several governments in the MENA region have recognized the potential of VR technology and are actively supporting its development. They are investing in infrastructure, promoting entrepreneurship, and providing incentives to attract VR software developers and companies. This support from the government is fostering a conducive environment for the growth of the VR Software market in MENA.

Underlying macroeconomic factors: The MENA region is witnessing rapid economic growth, which is contributing to the development of the VR Software market. Increased investment in infrastructure, construction, and tourism sectors is creating opportunities for VR software developers to cater to the growing demand for immersive experiences. Additionally, the region's favorable business environment, including tax incentives and government support, is attracting both local and international players to invest in the VR Software market in MENA. In conclusion, the VR Software market in MENA is experiencing significant growth and development due to customer preferences for immersive experiences, trends in the gaming and tourism sectors, local special circumstances such as a young and tech-savvy population, and underlying macroeconomic factors including rapid economic growth and government support. This market is expected to continue expanding as VR technology becomes more accessible and innovative applications are developed.

Methodology

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).