Market Insights Advertising & Media AR & VR

AR Advertising - India

India

In India, the revenue in the AR Advertising market market is projected to reach €149.5m in 2024.
The revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 9.49%, leading to a projected market volume of €235.2m by 2029.
While most revenue is generated the United States, the projected market volume in India is expected to be €1,135.0m in 2024.
India's AR advertising market is rapidly evolving, driven by a surge in smartphone usage and innovative digital marketing strategies tailored for diverse consumer segments.

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Analyst Opinion

The AR Advertising market in India is experiencing significant growth and development due to several key factors. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to the expansion of AR Advertising in India.

Customer preferences: Indian consumers are increasingly embracing technology and digital experiences. With the rise of smartphones and internet penetration, there is a growing demand for interactive and immersive advertising experiences. AR Advertising provides a unique and engaging way for brands to connect with their target audience. Customers appreciate the interactive nature of AR Advertising, as it allows them to actively participate and engage with the brand message.

Trends in the market: The AR Advertising market in India is witnessing a surge in innovation and creativity. Brands are leveraging AR technology to create immersive and interactive ad campaigns that capture the attention of consumers. From virtual try-on experiences to gamified advertisements, AR Advertising offers endless possibilities for brands to stand out in a crowded market. Additionally, the increasing availability of AR-enabled devices and apps further fuels the adoption of AR Advertising in India.

Local special circumstances: India's diverse cultural landscape presents unique opportunities for AR Advertising. Brands can tailor their AR campaigns to cater to specific regional preferences and traditions. For example, during festive seasons, brands can create AR experiences that incorporate traditional rituals and celebrations. This localized approach helps brands establish a deeper connection with the Indian audience and enhances the effectiveness of their advertising campaigns.

Underlying macroeconomic factors: India's growing economy and increasing disposable income contribute to the growth of the AR Advertising market. As more consumers have the purchasing power to buy smartphones and access the internet, the potential audience for AR Advertising expands. Additionally, the government's initiatives to promote digitalization and technology adoption further support the development of AR Advertising in India. With favorable economic conditions and a supportive regulatory environment, the AR Advertising market in India is poised for continued growth. In conclusion, the AR Advertising market in India is experiencing rapid growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The demand for interactive and immersive advertising experiences, coupled with the increasing availability of AR-enabled devices, drives the adoption of AR Advertising in India. Brands are leveraging AR technology to create innovative and engaging campaigns that resonate with the Indian audience. The country's diverse cultural landscape and favorable economic conditions further contribute to the expansion of the AR Advertising market in India.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR advertising revenue, which includes pop-up advertising displayed in social media apps, gaming apps, and eCommerce apps as well as advertising that is integrated 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).