Market Insights Advertising & Media AR & VR

AR Advertising - Malaysia

Malaysia

In Malaysia, the AR Advertising market is expected to witness significant growth, with projected revenue reaching US$22.2m in 2024.
This market segment is anticipated to display a steady annual growth rate (CAGR 2024-2028) of 9.73%, resulting in a projected market volume of US$32.2m by 2028.
It is worth noting that in the United States holds the largest share of the market, generating the majority of revenue with a projected market volume of US$1,224.0m in 2024.
AR advertising in Malaysia is experiencing significant growth, fueled by the country's tech-savvy population and increasing adoption of mobile devices.

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Analyst Opinion

The AR Advertising market in Malaysia is experiencing steady growth and development.

Customer preferences: In Malaysia, customers have shown a growing interest in AR Advertising due to its interactive and immersive nature. AR Advertising allows consumers to engage with brands and products in a unique way, creating a more personalized and memorable experience. Customers appreciate the ability to visualize products in their own environment before making a purchase, which enhances their decision-making process.

Trends in the market: One of the key trends in the AR Advertising market in Malaysia is the increasing adoption of AR technology by businesses across various industries. Companies are recognizing the potential of AR Advertising to reach and engage with their target audience in a more impactful way. From retail and e-commerce to real estate and tourism, businesses are leveraging AR technology to showcase their products and services in a more interactive and engaging manner. Another trend in the market is the integration of AR Advertising with social media platforms. With the rise in popularity of social media in Malaysia, brands are leveraging platforms such as Instagram and Facebook to deliver AR Advertising experiences to their followers. This allows for greater reach and engagement, as social media users can easily interact with AR content through their mobile devices.

Local special circumstances: Malaysia has a large and tech-savvy population, which contributes to the growth of the AR Advertising market. The country has a high smartphone penetration rate, and consumers are increasingly using their mobile devices for various activities, including shopping and entertainment. This provides a favorable environment for the adoption of AR Advertising, as consumers are already comfortable with using mobile technology. Additionally, Malaysia is known for its vibrant tourism industry. AR Advertising is being utilized in the tourism sector to enhance the visitor experience and promote local attractions. Tourists can use AR technology to access information, maps, and virtual guides, making their visit more immersive and informative.

Underlying macroeconomic factors: The growth of the AR Advertising market in Malaysia is supported by several macroeconomic factors. The country has a stable economy and a favorable business environment, which encourages investment and innovation. The government has also been supportive of the technology sector, providing incentives and initiatives to promote digital transformation. Furthermore, the COVID-19 pandemic has accelerated the adoption of digital technologies, including AR Advertising. With social distancing measures in place, businesses have turned to AR Advertising as a way to connect with customers remotely. This has further fueled the growth of the market, as businesses seek innovative ways to adapt to the changing landscape. In conclusion, the AR Advertising market in Malaysia is experiencing growth and development driven by customer preferences for interactive and immersive experiences, the adoption of AR technology by businesses, integration with social media platforms, local special circumstances such as a tech-savvy population and a vibrant tourism industry, and underlying macroeconomic factors such as a stable economy and government support.

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).