AR & VR - India

India

The AR & VR market in India is projected to reach a revenue of ₹US$759.9m in 2024.
It is expected to experience an annual growth rate (CAGR 2024-2028) of 11.39%, resulting in a projected market volume of ₹US$1,170.0m by 2028.
Among the various segments, AR Software holds the largest market share, with a volume of ₹US$237.0m in 2024.
The United States is the leading revenue generator in this market, with a projected volume of ₹US$10,260.0m in 2024.
In terms of user base, the AR & VR market in India is expected to have approximately 742.3m users users by 2028.
The user penetration rate is predicted to be 42.1% in 2024 and is projected to increase to 49.8% by 2028.
The average revenue per user (ARPU) is estimated to be ₹US$0.7.
Please note that the revenue values mentioned above only account for B2C revenues.
Thus, it covers 0.00 of the total market (B2C & B2B) in India.
India is experiencing a surge in demand for AR & VR technology, with companies leveraging these immersive technologies to enhance customer experiences and drive innovation.

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.
For more information on the data displayed, use the info button right next to the boxes.

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Analyst Opinion

The AR & VR market in India is experiencing significant growth and development.

Customer preferences: Customers in India are increasingly embracing AR & VR technologies for various purposes. They are using virtual reality for gaming, entertainment, and immersive experiences. Augmented reality, on the other hand, is being utilized in industries such as retail, healthcare, and real estate to enhance customer experiences and improve efficiency.

Trends in the market: One of the key trends in the AR & VR market in India is the growing adoption of these technologies in the gaming industry. With the increasing popularity of mobile gaming and the rise of eSports, virtual reality gaming is gaining traction among Indian gamers. This trend is fueled by the availability of affordable VR headsets and a wide range of gaming content. Another trend is the integration of AR & VR technologies in the education sector. Indian schools and educational institutions are incorporating these technologies to create immersive learning experiences and enhance student engagement. AR & VR applications are being used to provide virtual field trips, interactive simulations, and 3D visualizations, enabling students to learn in a more interactive and engaging manner.

Local special circumstances: India's large population and growing middle class are contributing to the development of the AR & VR market. With a population of over 1. 3 billion people, India offers a vast consumer base for AR & VR products and services. Additionally, the increasing disposable income of the middle class is driving the demand for innovative and immersive technologies. Furthermore, the Indian government's initiatives to promote digitalization and technology adoption are creating a favorable environment for the AR & VR market. Initiatives such as Digital India and Make in India are encouraging the development and adoption of advanced technologies, including AR & VR.

Underlying macroeconomic factors: India's rapid urbanization and increasing internet penetration are key macroeconomic factors driving the growth of the AR & VR market. As more people move to urban areas and gain access to the internet, the demand for AR & VR technologies is expected to rise. Additionally, the increasing affordability of smartphones and high-speed internet connectivity is making AR & VR more accessible to a larger population. Moreover, the presence of a strong technology ecosystem in India, including a thriving startup culture and a skilled workforce, is fueling innovation in the AR & VR market. Indian startups are developing innovative AR & VR solutions across various industries, contributing to the overall growth of the market. In conclusion, the AR & VR market in India is witnessing significant growth and development, driven by customer preferences, local special circumstances, and underlying macroeconomic factors. The increasing adoption of AR & VR technologies in gaming and education, along with India's large population, growing middle class, government initiatives, rapid urbanization, and increasing internet penetration, are all contributing to the growth of the market.

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).