Market Insights Advertising & Media AR & VR

AR Software - Saudi Arabia

Saudi Arabia

The AR Software market in Saudi Arabia is forecasted to achieve a revenue of US$31.6m in 2024.
This projection indicates an estimated annual growth rate (CAGR 2024-2028) of 8.84%, resulting in a market volume of US$44.4m by 2028.
The United States dominates the market with a projected market volume of US$3,945.0m in 2024.
By 2028, the number of users in the AR Software market is expected to reach 21.9m users.
The user penetration rate is projected to be 55.4% in 2024 and is anticipated to increase to 55.5% by 2028.
Furthermore, the average revenue per user (ARPU) is expected to be US$1.5.
Saudi Arabia is experiencing a growing demand for AR software in industries such as education, healthcare, and tourism.

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Analyst Opinion

The AR Software market in Saudi Arabia is experiencing significant growth and development due to several factors.

Customer preferences: Customers in Saudi Arabia are increasingly adopting AR software for various purposes. One of the key reasons for this is the growing demand for immersive and interactive experiences. AR software allows users to overlay digital information onto the real world, enhancing their perception and interaction with their surroundings. This technology is particularly appealing to the younger population, who are more tech-savvy and open to embracing new forms of technology. Additionally, businesses in Saudi Arabia are also recognizing the potential of AR software to enhance customer engagement and improve operational efficiency.

Trends in the market: One of the major trends in the AR Software market in Saudi Arabia is the increasing use of AR for marketing and advertising purposes. Businesses are leveraging AR technology to create interactive and engaging experiences for their customers. For example, retailers are using AR to allow customers to virtually try on clothes or visualize furniture in their homes before making a purchase. This trend is driven by the desire to provide a personalized and immersive shopping experience, as well as to differentiate from competitors. Another trend in the market is the integration of AR software into various industries such as healthcare, education, and tourism. In the healthcare sector, AR is being used for surgical simulations, patient education, and remote consultations. In education, AR is being utilized to enhance learning experiences by providing interactive and visual content. In the tourism industry, AR is being used to provide virtual tours and enhance the visitor experience.

Local special circumstances: Saudi Arabia has a young and tech-savvy population, which is driving the adoption of AR software. The government is also actively promoting the development of the technology sector as part of its Vision 2030 plan, which aims to diversify the economy and reduce dependence on oil. This has created a favorable environment for the growth of the AR Software market in Saudi Arabia, with increased investment and support for startups and technology companies.

Underlying macroeconomic factors: The AR Software market in Saudi Arabia is also benefiting from favorable macroeconomic factors. The country has a strong economy and high disposable income, which allows individuals and businesses to invest in new technologies. Additionally, the government's focus on digital transformation and innovation is creating opportunities for AR software providers. The increasing internet penetration and smartphone adoption in the country are also contributing to the growth of the AR Software market. In conclusion, the AR Software market in Saudi Arabia is experiencing significant growth and development due to customer preferences for immersive and interactive experiences, the increasing use of AR for marketing and advertising, integration into various industries, the young and tech-savvy population, government support, and favorable macroeconomic factors. This market is expected to continue to expand as more businesses and individuals recognize the potential of AR software and its applications.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR software revenue, which includes revenues related to in-app purchases as well as revenues from the purchase of social media, gaming, and eCommerce apps.

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).