Market Insights Advertising & Media AR & VR

VR Advertising - India

India

The VR Advertising market in India is anticipated to witness a substantial revenue growth in the coming years.
By 2024, the projected revenue is expected to reach a significant amount of US$5.3m.
This estimate indicates a positive market trend, with an annual growth rate (CAGR 2024-2028) of 1.65%.
As a result, the market volume is projected to reach US$5.7m by 2028.
It is worth mentioning that in the United States dominates the VR Advertising market, generating the highest revenue.
In 2024 alone, the projected market volume is expected to reach a substantial US$47.4m in the United States.
This signifies the largest market share within the industry.
India is experiencing a surge in VR advertising, with brands leveraging immersive experiences to engage and captivate their tech-savvy consumer base.

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Analyst Opinion

The VR Advertising market in India is experiencing significant growth and development due to several key factors.

Customer preferences: Customers in India are increasingly embracing virtual reality technology and are showing a growing interest in immersive experiences. With the rise of smartphones and affordable VR headsets, more and more people are able to access and experience virtual reality content. This has created a demand for VR advertising that can engage and captivate audiences in new and exciting ways.

Trends in the market: One of the major trends in the VR Advertising market in India is the integration of VR technology into various industries. Companies are using VR to create immersive and interactive advertisements that can provide a more engaging and memorable experience for consumers. For example, in the real estate industry, virtual reality tours of properties are becoming increasingly popular, allowing potential buyers to explore homes without physically visiting them. Similarly, in the automotive industry, VR advertisements are being used to showcase new car models and allow customers to virtually test drive them. Another trend in the market is the use of VR in experiential marketing campaigns. Brands are leveraging virtual reality to create unique and immersive experiences for their customers. This could include virtual reality games, simulations, or branded VR content that allows users to interact with the brand in a new and exciting way. These immersive experiences not only capture the attention of consumers but also leave a lasting impression, increasing brand awareness and loyalty.

Local special circumstances: India has a large and growing tech-savvy population, making it an attractive market for VR advertising. The country has witnessed a rapid increase in smartphone penetration, internet connectivity, and digital literacy, creating a fertile ground for the adoption of VR technology. Additionally, the government's push for digitalization and the Make in India campaign has further accelerated the growth of the VR Advertising market in the country.

Underlying macroeconomic factors: India's strong economic growth and rising disposable incomes have contributed to the growth of the VR Advertising market. As more people have access to smartphones and VR headsets, the demand for immersive experiences and engaging content has increased. Furthermore, the increasing internet penetration and the availability of high-speed internet connections have made it easier for consumers to access and consume VR content. In conclusion, the VR Advertising market in India is witnessing significant growth and development due to the increasing customer preference for immersive experiences, the integration of VR technology into various industries, and the favorable local circumstances and macroeconomic factors. As the market continues to evolve, we can expect to see more innovative and engaging VR advertising campaigns in India.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR advertising revenue, which includes advertising that is integrated into the virtual world within video games and videos.

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).