VR Software - South Africa

South Africa

Highlights

In South Africa, revenue in the VR Software market market is projected to reach US$10.7m in 2024.
The revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 8.58%, leading to a projected market volume of US$16.2m by 2029.
While most revenue in the VR Software market market is generated the United States, in South Africa is also witnessing significant growth.
In the VR Software market market, the number of users in South Africa is expected to amount to 542.1k users by 2029.
User penetration in South Africa will be 0.7% in 2024 and is anticipated to reach 0.8% by 2029.
The average revenue per user (ARPU) in South Africa is expected to amount to US$23.6.
In South Africa, the VR software market is experiencing a surge in interest from educational institutions seeking innovative solutions for immersive learning experiences.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The VR Software market in South Africa is experiencing significant growth and development, driven by customer preferences for immersive and interactive experiences, as well as advancements in technology and increasing consumer adoption.

Customer preferences: Customers in South Africa are increasingly seeking immersive and interactive experiences, which is driving the demand for VR software. VR software allows users to explore virtual worlds, interact with objects and characters, and experience simulations of real-life scenarios. This appeals to a wide range of customers, including gamers, entertainment enthusiasts, and professionals in industries such as architecture, engineering, and healthcare.

Trends in the market: One major trend in the VR Software market in South Africa is the increasing availability and affordability of VR headsets and devices. As the cost of VR hardware decreases, more consumers are able to access and experience VR content, which in turn drives the demand for VR software. Additionally, the development of standalone VR headsets that do not require a PC or console is making VR more accessible to a wider audience. Another trend is the growth of VR software applications in various industries. For example, in the gaming industry, VR software is being used to create immersive and realistic gaming experiences. In the healthcare industry, VR software is being used for medical training and therapy. This diversification of VR software applications is expanding the market and attracting new customers.

Local special circumstances: South Africa has a growing technology sector and a young and tech-savvy population, which creates a favorable environment for the development and adoption of VR software. The country has a strong gaming community and a growing number of VR arcades and entertainment venues, which contribute to the demand for VR software.

Underlying macroeconomic factors: The growth of the VR Software market in South Africa is supported by various macroeconomic factors. The country has a relatively stable economy and a growing middle class, which has increased disposable income and consumer spending. This allows more consumers to invest in VR hardware and software. Furthermore, the government of South Africa has recognized the potential of the technology sector and has implemented policies to support its growth. This includes initiatives to improve internet connectivity and digital infrastructure, which are essential for the development and adoption of VR software. In conclusion, the VR Software market in South Africa is experiencing significant growth and development due to customer preferences for immersive experiences, advancements in technology, and favorable macroeconomic factors. The increasing availability and affordability of VR hardware, the diversification of VR software applications, and the country's growing technology sector all contribute to the expansion of the market.

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).