Market Insights Advertising & Media AR & VR

VR Software - NAFTA

NAFTA

According to projections, the revenue in the VR Software market is set to reach US$1.2bn by 2024.
This market segment is expected to demonstrate an annual growth rate (CAGR 2024-2028) of 6.09%, resulting in a projected market volume of US$1.5bn by 2028.
It is worth noting that in the United States dominates this market, generating the majority of revenue with a projected market volume of US$990.3m by 2024.
Furthermore, the number of users in the VR Software market is anticipated to reach 54.9m users by 2028.
The user penetration rate, which currently stands at 9.8% in 2024, is expected to increase to 10.5% by 2028.
Moreover, the average revenue per user (ARPU) is projected to be US$23.9.
These figures highlight the significant potential and growth opportunities within the VR Software market, particularly in the United States, which holds a dominant position in this market segment.
NAFTA countries, including in the United States, play a crucial role in driving the growth and development of the VR Software market.
In the NAFTA region, the VR software market is experiencing rapid growth, with Canada leading the way in innovative and immersive virtual reality applications.

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Region comparison

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Analyst Opinion

The VR Software market in NAFTA is experiencing significant growth and development due to several key factors. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to the current state of the VR Software market in NAFTA.

Customer preferences: Customers in the NAFTA region are increasingly interested in immersive and interactive experiences, which has fueled the demand for VR Software. The ability to explore virtual worlds, play games, and engage in virtual simulations has captured the attention of consumers across the region. Additionally, businesses are recognizing the value of VR Software for training purposes, as it allows employees to practice real-world scenarios in a safe and controlled environment.

Trends in the market: One of the major trends in the VR Software market in NAFTA is the increasing adoption of VR technology in various industries. From healthcare to education, VR Software is being used to enhance learning experiences, improve patient outcomes, and streamline processes. This trend is driven by the growing awareness of the potential benefits of VR Software and the availability of more affordable and accessible VR devices. Another trend in the market is the development of VR Software specifically tailored to the needs of businesses. As companies look for innovative ways to engage with customers and differentiate themselves from competitors, VR Software offers a unique and immersive platform. This has led to the emergence of VR Software solutions that enable businesses to create virtual showrooms, conduct virtual meetings, and provide virtual tours of their products or services.

Local special circumstances: The NAFTA region is home to several major players in the VR Software market, including the United States and Canada. These countries have a strong technology infrastructure and a large consumer base, which has contributed to the growth of the VR Software market in the region. Additionally, the presence of leading VR Software developers and manufacturers in the region has further fueled the market's expansion.

Underlying macroeconomic factors: The VR Software market in NAFTA is also influenced by underlying macroeconomic factors. The region's strong economic growth and increasing disposable income levels have made VR Software more affordable and accessible to a larger segment of the population. Additionally, favorable government policies and initiatives to promote innovation and technology adoption have created a conducive environment for the growth of the VR Software market. In conclusion, the VR Software market in NAFTA 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, the adoption of VR technology in various industries, the development of VR Software for businesses, and the strong economic growth in the region all contribute to the expansion of the VR Software market in NAFTA.

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).