AR & VR - United States

United States

Revenue in the AR & VR market market in the United States is projected to reach €10.1bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 8.75%, leading to a projected market volume of €15.4bn by 2029.
The largest market within this market is AR Software, with a market volume of €3.7bn in 2024.
Most of the revenue is generated the United States, with a projected market volume of €10.1bn in 2024.
In the AR & VR market market, the number of users the United States is anticipated to reach 300.8m users by 2029.
User penetration is forecasted to be 83.5% in 2024 and is expected to rise to 85.8% by 2029.
The average revenue per user (ARPU) is projected to amount to €35.4.
The United States is witnessing a surge in AR and VR adoption, driven by advancements in technology and increasing demand for immersive experiences across various industries.

Definition:

Augmented reality (AR) and virtual reality (VR) make it possible to combine the real and virtual worlds. AR is generally accessed via mobile phones and primarily relies on lenses. AR effects can be created by using lenses in social media apps, for example. AR is also used for displaying digital 3D objects in our surroundings, e.g., in gaming or eCommerce apps. Meanwhile, VR technology allows users to dive into the virtual world, and, unlike AR technology, it requires a headset device which enables the creation of virtual worlds.

Structure:

The AR & VR market consists of six different markets: AR Advertising, AR Hardware, AR Software, VR Advertising, VR Hardware, and VR Software. AR Advertising covers mobile advertising that is displayed in the most prominent social media apps. AR Hardware comprises AR headsets and glasses. AR Software is divided into three different application types, namely social media, gaming, and eCommerce applications, which can be accessed via the most prominent app stores. VR Advertising covers in-game advertising as well as advertising in VR videos. VR Hardware comprises both tethered head-mounted displays (HMDs) and stand-alone HMD headsets. Lastly, VR Software covers VR games and VR videos, which require headsets.

Additional information:

The market comprises revenues, users, average revenue per user, and penetration rates. Revenues are generated through in-app purchases, advertising spending, and consumer spending on apps, games, and hardware such as headsets or glasses. Sales channel data shows both online and offline revenues, which include VAT. The market only displays B2C revenues and users for the above-mentioned markets and markets; B2B and B2G revenues are not included. Additional definitions for each market can be found on the respective market pages.
Market numbers for VR headsets are also featured in the Consumer Market Insights, namely in the Gaming Equipment market of the Consumer Electronics market. Unlike the VR Hardware market in the Advertising & Media Outlook, the Gaming Equipment market also covers smartphone VR devices.
Key players in the market include companies such as Meta (Oculus VR), Microsoft (HoloLens), Snap Inc. with different lenses, and Nvidia, which offers computing hardware components.
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Analyst Opinion

The AR & VR market in United States has experienced significant growth and development in recent years.

Customer preferences: Customers in the United States have shown a strong interest in AR & VR technology, with a growing demand for immersive experiences in various industries such as gaming, entertainment, healthcare, and education. The ability of AR & VR to provide a more engaging and interactive user experience has been a key factor in driving customer preferences in the market. Additionally, the increasing availability of affordable AR & VR devices and applications has made these technologies more accessible to a wider range of consumers.

Trends in the market: One of the key trends in the AR & VR market in United States is the adoption of these technologies in the gaming industry. Gaming enthusiasts are increasingly turning to AR & VR devices to enhance their gaming experiences, allowing them to immerse themselves in virtual worlds and interact with virtual characters and objects. This trend has been fueled by the development of high-quality gaming content specifically designed for AR & VR platforms. Another trend in the market is the use of AR & VR in the healthcare industry. Medical professionals are leveraging these technologies to enhance patient care and improve medical training. AR & VR applications are being used for surgical simulations, patient education, and even virtual therapy sessions. The ability of AR & VR to provide realistic and immersive experiences has the potential to revolutionize the healthcare industry and improve patient outcomes.

Local special circumstances: The United States has a well-established technology and innovation ecosystem, which has played a significant role in the development of the AR & VR market. The presence of major tech companies and startups in the country has fostered a culture of innovation and entrepreneurship, driving the advancement of AR & VR technologies. Additionally, the United States has a large consumer market and a high level of disposable income, which has contributed to the growth of the AR & VR market.

Underlying macroeconomic factors: The growth of the AR & VR market in United States can be attributed to several underlying macroeconomic factors. The country has a strong economy and a high level of technological adoption, which has created a favorable environment for the development and adoption of AR & VR technologies. Additionally, the government has been supportive of the AR & VR industry, providing funding and resources for research and development. The presence of a skilled workforce and a robust infrastructure has also played a role in the growth of the AR & VR market in United States. In conclusion, the AR & VR market in United States is experiencing significant growth and development, driven by customer preferences for immersive experiences, the adoption of these technologies in various industries, and the presence of a strong technology and innovation ecosystem. The future of the AR & VR market in United States looks promising, with continued advancements in technology and increasing consumer demand for immersive experiences.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the AR & VR market. AR and VR enable consumers to experience a new dimension, using either a headset or installed units, as they combine the real and virtual worlds. Consumer revenue figures refer to revenues relating to AR hardware, AR software, VR hardware, VR software, and spending on AR and VR advertising. Both digital and non-digital revenues are included.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports. In addition, we use relevant key market indicators and data from country-specific associations, such as consumer spending, internet penetration, 4G coverage, and historical developments. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, 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 market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. 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).