Market Insights Advertising & Media AR & VR

VR Software - Philippines

Philippines

The VR Software market in the Philippines is forecasted to achieve a revenue of US$20.9m by 2024.
This revenue is projected to experience a compound annual growth rate (CAGR 2024-2029) of 9.12%, leading to a market volume of US$32.4m by 2029.
The United States is the primary revenue generator in the VR Software market, with a projected market volume of US$990.3m in 2024.
In terms of user base, the number of VR Software market users is expected to reach 1,085.0k users by 2029.
The user penetration rate, which is the proportion of users in relation to the total population, is anticipated to be 0.8% in 2024 and is projected to increase to 0.8% by 2029.
Furthermore, the average revenue per user (ARPU) in the VR Software market is expected to be US$23.5.
The Philippines is experiencing a growing demand for VR software, driven by the increasing interest in immersive technology among its tech-savvy population.

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Analyst Opinion

The VR Software market in Philippines is experiencing significant growth and development due to various factors.

Customer preferences: Customers in the Philippines are increasingly showing interest in virtual reality (VR) software. This can be attributed to the growing popularity of VR gaming and entertainment experiences. The immersive and interactive nature of VR software appeals to the tech-savvy younger generation who are seeking unique and engaging experiences. Additionally, businesses in sectors such as real estate, tourism, and education are also adopting VR software to enhance their services and provide customers with virtual experiences.

Trends in the market: One of the key trends in the VR software market in Philippines is the increasing demand for gaming-related VR software. The gaming industry in the country has been growing rapidly, with a large number of gamers and gaming enthusiasts. This has created a strong market for VR software that provides immersive gaming experiences. Furthermore, the rise of eSports in the Philippines has also contributed to the growth of the VR software market, as competitive gamers seek advanced technologies to enhance their gaming skills. Another trend in the market is the adoption of VR software in the tourism industry. The Philippines is known for its beautiful beaches, natural landscapes, and cultural heritage. VR software allows tourists to experience these attractions virtually, providing a preview of what they can expect when visiting the country. This has become particularly relevant during the COVID-19 pandemic, where travel restrictions have limited physical tourism. VR software offers an alternative way for tourists to explore and plan their future trips.

Local special circumstances: The Philippines has a large and growing population of young tech-savvy individuals who are eager to embrace new technologies. This demographic is a key driver of the VR software market in the country. Additionally, the Philippines has a strong outsourcing industry, with many global companies setting up operations in the country. These companies often require VR software for training, simulations, and other business applications, further driving the demand for VR software in the country.

Underlying macroeconomic factors: The growing VR software market in the Philippines is also influenced by underlying macroeconomic factors. The country has been experiencing steady economic growth, which has led to an increase in disposable income and consumer spending. As a result, more individuals and businesses are able to invest in VR software and related technologies. Furthermore, the government of the Philippines has been supportive of the technology sector, providing incentives and creating a favorable environment for tech companies to thrive. This has attracted foreign investment and contributed to the growth of the VR software market. In conclusion, the VR software market in Philippines is witnessing significant growth and development due to the preferences of customers, trends in the market, local special circumstances, and underlying macroeconomic factors. The increasing interest in VR gaming, adoption of VR software in the tourism industry, and the presence of a young tech-savvy population are driving the growth of the market. Additionally, the steady economic growth and government support for the technology sector are creating a favorable environment for the VR software market to thrive in the Philippines.

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).