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VR Hardware - South Korea

South Korea

In South Korea, revenue in the VR Hardware market market is projected to reach €313.5m in 2024.
The revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 10.71%, leading to a projected market volume of €521.4m by 2029.
Although most revenue in the VR Hardware market market is generated China with a projected market volume of €2,691.0m in 2024, in South Korea is also a significant player.
By 2029, the number of users in the VR Hardware market market in South Korea is expected to amount to 4.7m users.
User penetration in South Korea will be 7.7% in 2024 and is anticipated to reach 9.2% by 2029.
Furthermore, the average revenue per user (ARPU) in South Korea is expected to amount to €78.3.
South Korea's VR hardware market is witnessing significant innovation, driven by a growing demand for immersive gaming and educational experiences.

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Analyst Opinion

The VR Hardware market in South Korea has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: South Korean consumers have shown a strong interest in immersive experiences, making VR Hardware a popular choice. The younger generation, in particular, is highly tech-savvy and eager to embrace new technologies. They value the ability to escape reality and explore virtual worlds, which VR Hardware provides. Additionally, South Koreans have a strong gaming culture, and VR Hardware offers an enhanced gaming experience that appeals to this demographic.

Trends in the market: One of the key trends in the VR Hardware market in South Korea is the increasing adoption of VR headsets for gaming purposes. Gaming is a major industry in South Korea, and VR technology has added a new dimension to the gaming experience. With advancements in VR technology, more immersive and realistic gaming experiences are becoming available, attracting a growing number of gamers. Another trend in the market is the integration of VR technology in various industries beyond gaming. South Korea has seen the application of VR in areas such as education, healthcare, and tourism. VR Hardware is being used to provide virtual training simulations, medical procedures, and virtual tours, offering a more engaging and interactive experience for users.

Local special circumstances: South Korea has a well-developed technology infrastructure and a high internet penetration rate, which has facilitated the growth of the VR Hardware market. The country's advanced telecommunications network and widespread access to high-speed internet have created a favorable environment for the adoption of VR technology. Additionally, South Korea has a strong focus on research and development, with significant investments being made in VR technology. This has led to the development of innovative VR Hardware products and solutions, further driving the market growth.

Underlying macroeconomic factors: The South Korean economy has been growing steadily, providing consumers with the purchasing power to invest in VR Hardware. The country's strong economic performance has contributed to the increasing demand for high-quality VR devices. Furthermore, the government has been actively supporting the development of the VR industry through various initiatives and policies. This support has created a conducive environment for VR Hardware manufacturers and has encouraged the growth of the market. In conclusion, the VR Hardware market in South Korea is experiencing rapid growth due to customer preferences for immersive experiences, the adoption of VR technology in gaming and other industries, the country's advanced technology infrastructure, government support, and the strong macroeconomic factors. As these factors continue to drive the market, the VR Hardware industry in South Korea is expected to flourish in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR hardware revenue, which includes digital spending on hardware (stand-alone and tethered units) that enables consumers to dive 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).