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VR Software - South Korea

South Korea

The VR Software market in South Korea is anticipated to witness a substantial growth in revenue, reaching US$64.2m by 2024.
This projection indicates a promising future for the country's VR Software market industry.
Moreover, a steady annual growth rate of 4.79% is expected between 2024 and 2028, resulting in a projected market volume of US$77.4m by the end of 2028.
It is worth noting that in the United States currently holds the largest share of revenue in the VR Software market, with an estimated market volume of US$990.3m in 2024.
This signifies the dominance of the US in this particular market segment.
Looking at the number of users, the VR Software market is expected to witness a significant increase, with the user base projected to reach 2.8m users by 2028.
This indicates a growing demand for VR Software market among consumers.
Additionally, the user penetration rate is set to rise from 5.0% in 2024 to 5.4% by 2028, further showcasing the increasing popularity of VR Software market among the South Korean population.
Furthermore, the average revenue per user (ARPU) is projected to amount to US$24.6, indicating the average amount of revenue generated per user in the VR Software market.
This metric provides insights into the potential profitability of the industry.
Overall, the VR Software market in South Korea exhibits a promising future, with significant revenue growth, increasing user numbers, and a rising user penetration rate.
These factors contribute to the market's potential for expansion and success in the coming years.
South Korea is rapidly emerging as a leader in VR software development, with a robust ecosystem of innovative companies driving the market forward.

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Analyst Opinion

South Korea is experiencing significant growth in the VR software market, driven by several factors such as customer preferences, market trends, and local special circumstances.

Customer preferences: South Korean consumers are increasingly interested in immersive and interactive experiences, which has fueled the demand for VR software. The younger generation, in particular, is drawn to the idea of virtual reality as a form of entertainment and escapism. Additionally, there is a growing interest in VR applications for education, training, and healthcare purposes.

Trends in the market: One of the key trends in the VR software market in South Korea is the adoption of VR technology in the gaming industry. South Korea has a strong gaming culture, and VR gaming experiences have gained popularity among gamers. This trend has led to the development of a wide range of VR games and software, catering to the preferences of the local market. Another trend is the integration of VR technology in the tourism sector. South Korea is a popular tourist destination, and VR software is being used to provide virtual tours and immersive experiences to potential visitors. This trend has been further accelerated by the COVID-19 pandemic, as travel restrictions have limited physical tourism.

Local special circumstances: South Korea has a well-developed technology infrastructure and a high smartphone penetration rate, which has contributed to the growth of the VR software market. The country also has a strong focus on research and development, with government support for innovation and technological advancements. This has created a conducive environment for the development and adoption of VR software.

Underlying macroeconomic factors: The South Korean economy has been resilient and has shown steady growth in recent years. This has increased consumer spending power and willingness to invest in new technologies, including VR software. The government's efforts to promote the digital economy and innovation have also played a role in driving the growth of the VR software market. In conclusion, the VR software market in South Korea is experiencing significant growth due to customer preferences for immersive experiences, trends in the gaming and tourism sectors, local special circumstances such as technological infrastructure and government support, and underlying macroeconomic factors. As the market continues to evolve, it is expected that VR software will become even more integrated into various industries and become a mainstream technology in South Korea.

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).