The revenue in the AR & VR market in Finland is projected to reach €96.1m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2028) of 10.70%, resulting in a projected market volume of €144.4m by 2028.
The largest market segment is AR Software with a market volume of €30.0m0.00 in 2024.
The United States generates the most revenue in the AR & VR market, with a projected market volume of €9,376.0m in 2024.
In Finland, the number of users in the AR & VR market is expected to amount to 4,157.0k users by 2028.
The user penetration rate will be 72.3% in 2024 and is expected to increase to 74.7% by 2028.
The average revenue per user (ARPU) is expected to amount to €11.8.
Please note that the revenue values mentioned here only account for B2C revenues.
According to the displayed market share of B2C, none of the total market (B2C & B2B) is covered.
The AR & VR market offers significant potential for growth and development in Finland.
Finland's AR & VR market is thriving, with a strong focus on innovation and collaboration between tech companies and academic institutions.
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.
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.
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.
For more information on the data displayed, use the info button right next to the boxes.
AR headsets and glasses, such as HoloLens
VR headsets, such as Meta Quest
AR apps, such as Snapchat or Pokémon Go
VR games that can be accessed via distribution platforms such as Steam
Apps that can be accessed via iPhones and Android phones
Cardboard VR headsets, such as Google VR
VR headsets for smartphones, such as Fiyapoo VR
Apps for Android phones that are solely available in stores such as Amazon Appstore and Microsoft Store
Apps available on other operating systems, such as Ubuntu
Augmented reality and virtual reality have gained a great deal of attention in recent years. Big tech companies have entered the market and consolidated their market position by acquiring several companies operating in the augmented and virtual reality industry. With constantly improving technology and an increasing number of 5G internet connections, the market is set to witness strong growth in the future.
Social media apps, such as Snapchat, Instagram, Facebook, and, most recently, TikTok, set a milestone in the use of augmented reality in the consumer sector. Numerous innovations, e.g., new lenses and features, have attracted the attention of consumers and are now indispensable. But it is not only social media apps that have implemented augmented reality; gaming and eCommerce apps have also been able to strengthen their position in the market. With a total of more than 600 million downloads, Pokémon Go, one of the most famous augmented reality apps, reached the pinnacle of AR gaming. Since many gaming apps are following concepts similar to that of Pokémon Go, the market is exhibiting considerable growth. The eCommerce sector, for its part, is still adapting to AR and VR, but it is on its way to carving out a strong market position, with furniture apps such as Ikea Place and Wayfair or makeup apps such as Sephora. AR software is dominating the AR market, while AR hardware is still lagging behind. However, Apple will enter the market with AR glasses, thus competing with HoloLens by Microsoft, the current key player in the market. This is another reason why the AR market is set to witness strong growth in the future.
In contrast to augmented reality, virtual reality has been a fairly common technology for quite some time now, with apps such as Google Earth, for instance. Nevertheless, VR technology will continue to advance, and the quality of headsets, stand-alone units in particular, will improve significantly in the future. With its VR headset, Meta Quest, Meta is dominating the market, accounting for more than one third of total unit sales. While there were only rather basic games in the early adoption phase, the market is moving strongly toward more sophisticated games, which require more interaction from consumers.
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.
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.
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).