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VR Software - Europe

Europe

The VR Software market in Europe is expected to witness significant growth in the coming years.
According to projections, the revenue in this market is estimated to reach US$1.1bn by 2024.
Furthermore, it is anticipated that the market will experience a compound annual growth rate (CAGR) of 9.05% between 2024 and 2028, resulting in a projected market volume of US$1.6bn by 2028.
In terms of revenue generation, in the United States is expected to dominate the VR Software market, with a projected market volume of US$990.3m in 2024.
This highlights the strong presence and demand for VR software in the United States.
As for the number of users, it is estimated that the VR Software market will see a significant increase, reaching approximately 55.2m users users by 2028.
In 2024, the user penetration rate is expected to be 6.0%, with a projected increase to 7.0% by 2028.
The average revenue per user (ARPU) in the VR Software market is projected to be US$23.7.
This metric provides insights into the potential earnings per user, indicating the market's profitability and potential for revenue growth.
Overall, the VR Software market in Europe is poised for substantial growth, with in the United States leading in terms of revenue generation.
The increasing number of users and the promising ARPU further demonstrate the market's potential and attractiveness for businesses operating in this sector.
Germany is at the forefront of VR software development in Europe, with a strong focus on immersive gaming experiences.

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Analyst Opinion

The VR Software market in Europe is experiencing significant growth and development, driven by several key factors. Customer preferences in Europe are increasingly shifting towards immersive and interactive experiences, which has led to a growing demand for VR software.

Consumers are seeking new and innovative ways to engage with digital content, and VR technology provides a unique opportunity to do so. From gaming to entertainment, education to training, VR software offers a wide range of applications that cater to diverse customer preferences. Trends in the market indicate a strong focus on gaming and entertainment.

The popularity of VR gaming has surged in recent years, with an increasing number of gamers embracing virtual reality as a way to enhance their gaming experience. This trend is further supported by the development of advanced VR hardware, such as high-resolution headsets and motion controllers, which provide a more immersive and realistic gaming environment. In addition to gaming, VR software is also being used in the entertainment industry to create interactive and immersive experiences for movies, music, and live events.

Local special circumstances in Europe play a significant role in the development of the VR Software market. Europe is home to a large number of tech-savvy consumers who are early adopters of new technologies. This tech-savvy population, combined with a strong gaming and entertainment culture, creates a fertile ground for the growth of the VR software market.

Additionally, Europe has a well-developed infrastructure and a high internet penetration rate, which facilitates the adoption and usage of VR software. Underlying macroeconomic factors also contribute to the growth of the VR software market in Europe. The European economy is experiencing steady growth, which has led to increased consumer spending power.

As a result, consumers are more willing to invest in VR hardware and software to enhance their digital experiences. Furthermore, the European Union has been actively supporting the development of VR technology through various initiatives and funding programs. This support has created a favorable environment for VR software companies to innovate and expand their offerings.

In conclusion, the VR Software market in Europe is witnessing significant growth and development due to customer preferences for immersive experiences, trends in gaming and entertainment, local special circumstances, and favorable macroeconomic factors. As the demand for VR software continues to rise, companies in Europe are well-positioned to capitalize on this growing market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR software revenue, which includes revenues from video games and VR videos consumed via stand-alone or tethered units.

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:

F2The 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).