AR & VR - United Kingdom

  • United Kingdom
  • The AR & VR market in the United Kingdom is projected to reach a revenue of US$1,458.0m in 2024.
  • It is expected to show an annual growth rate of 9.27% from 2024 to 2029, resulting in a projected market volume of US$2,271.0m by 2029.
  • The largest market segment in the United Kingdom is VR Hardware, with a market volume of US$498.7m in 2024.
  • Among the countries, in the United States generates the most revenue in the AR & VR market, with a projected market volume of US$10,900.0m in 2024.
  • In terms of user base, the number of AR & VR market users in the United Kingdom is expected to amount to 57.5m users by 2029.
  • The user penetration rate is projected to be 81.0% in 2024 and is expected to reach 83.3% by 2029.
  • The average revenue per user (ARPU) is expected to be US$26.5.
  • It's important to note that the revenue values mentioned here only account for B2C revenues.
  • Therefore, according to the displayed market share of B2C, 0.00 of the total market (B2C & B2B) is covered.
  • The United Kingdom is experiencing a surge in AR & VR adoption, with companies across various industries investing in immersive technologies to enhance customer experiences and drive innovation.
Region comparison

Analyst Opinion

The AR & VR market in United Kingdom is witnessing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the United Kingdom are driving the growth of the AR & VR market.

Consumers are increasingly seeking immersive and interactive experiences, and AR & VR technologies provide exactly that. The ability to explore virtual worlds, play games, and engage in virtual reality experiences is highly appealing to the tech-savvy population in the United Kingdom. Trends in the market further contribute to the development of the AR & VR market in the United Kingdom.

The increasing adoption of smartphones and other mobile devices has made AR & VR technologies more accessible to a wider audience. This has led to a surge in demand for AR & VR apps and games, as well as virtual reality headsets. Additionally, advancements in AR & VR hardware and software have improved the quality and realism of virtual experiences, further attracting consumers in the United Kingdom.

Local special circumstances also play a role in the growth of the AR & VR market in the United Kingdom. The country has a strong technology ecosystem, with numerous startups and established companies working on AR & VR innovations. This fosters a culture of innovation and entrepreneurship, leading to the development of cutting-edge AR & VR products and services.

Furthermore, the United Kingdom has a vibrant creative industry, with a strong presence in film, television, and gaming. This provides a fertile ground for the creation of immersive and engaging AR & VR content. Underlying macroeconomic factors also contribute to the growth of the AR & VR market in the United Kingdom.

The country has a strong economy and a high disposable income, which enables consumers to invest in AR & VR technologies. Additionally, the government in the United Kingdom has been supportive of the AR & VR industry, providing funding and incentives for research and development in this field. This has created a favorable environment for companies operating in the AR & VR market, encouraging further growth and innovation.

In conclusion, the AR & VR market in the United Kingdom is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The increasing demand for immersive and interactive experiences, advancements in technology, a vibrant creative industry, and a supportive government contribute to the thriving AR & VR market in the United Kingdom.


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.


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).


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