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VR Hardware - Israel

Israel

The VR Hardware market in Israel is anticipated to witness significant growth in the coming years.
According to projections, the market's revenue is expected to reach US$23.6m in 2024.
Moreover, a steady annual growth rate of 9.51% (CAGR 2024-2028) is predicted, resulting in a projected market volume of US$33.9m by 2028.
in China currently leads the pack in terms of revenue generation in the VR Hardware market, with a projected market volume of US$2,902.0m in 2024.
However, it is important to note that the Israeli market is also expected to contribute significantly to the overall revenue in this segment.
Looking at user statistics, the number of VR Hardware market users in Israel is projected to reach 354.8k users by 2028.
In terms of user penetration, it is estimated to be 3.1% in 2024, with a forecasted increase to 3.6% by 2028.
Lastly, the average revenue per user (ARPU) is expected to amount to US$81.1 in Israel.
This metric serves as a key indicator of the market's profitability and revenue potential per user.
Israel is emerging as a leading hub for VR hardware innovation, with a strong focus on military and defense applications.

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Analyst Opinion

The VR Hardware market in Israel has been experiencing significant growth in recent years, driven by customer preferences and local special circumstances.

Customer preferences: Customers in Israel have shown a strong interest in virtual reality technology, particularly in the gaming and entertainment sectors. The immersive and interactive nature of VR experiences has captured the attention of Israeli consumers, who are eager to explore new forms of entertainment. Additionally, there is a growing demand for VR hardware in the education and training sectors, as organizations recognize the potential of virtual reality in enhancing learning experiences and improving skills development.

Trends in the market: One of the key trends in the VR Hardware market in Israel is the increasing adoption of standalone VR headsets. These devices offer a more convenient and user-friendly experience compared to tethered headsets, as they do not require a separate computer or console to operate. The affordability and portability of standalone headsets have made them popular among consumers in Israel, driving the growth of the VR Hardware market. Another trend in the market is the integration of augmented reality (AR) capabilities into VR hardware. This combination of technologies, known as mixed reality, allows users to interact with virtual objects in the real world. The integration of AR features in VR headsets has opened up new possibilities for applications in various industries, such as architecture, healthcare, and retail. Israeli consumers are embracing this technology, leading to increased demand for VR hardware with AR capabilities.

Local special circumstances: Israel has a thriving technology sector and is known for its innovation and entrepreneurship. The country has a strong ecosystem of startups and technology companies, many of which are focused on developing cutting-edge VR hardware and software solutions. This vibrant tech scene has created a favorable environment for the growth of the VR Hardware market in Israel, as local companies continue to push the boundaries of virtual reality technology.

Underlying macroeconomic factors: Israel has a strong economy with a high level of disposable income among its population. This has contributed to the growing demand for consumer electronics, including VR hardware. Additionally, the government of Israel has been supportive of the technology sector, providing funding and incentives for research and development. These factors have created a conducive environment for the VR Hardware market to thrive in Israel. In conclusion, the VR Hardware market in Israel is experiencing significant growth due to customer preferences for immersive entertainment experiences, the adoption of standalone VR headsets, the integration of AR capabilities, the country's thriving technology sector, and favorable macroeconomic factors. As the market continues to evolve, it is expected that VR hardware will become more accessible and innovative, driving further growth in the industry.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR hardware revenue, which includes digital spending on hardware (stand-alone and tethered units) that enables consumers to dive into the virtual world.

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).