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AR Hardware

South Korea

In South Korea, revenue in the AR Hardware market market is projected to reach US$119.6m in 2024.
The revenue in this sector is anticipated to show an annual growth rate (CAGR 2024-2029) of 12.94%, leading to a projected market volume of US$219.8m by 2029.
While the United States is expected to generate the majority of revenue with a projected market volume of US$2,261.0m in 2024, South Korea's AR Hardware market market is also on the rise.
By 2029, the number of users in the AR Hardware market market in South Korea is expected to amount to 2.7m users.
User penetration is forecasted to be 1.7% in 2024 and is expected to increase to 5.3% by 2029.
The average revenue per user (ARPU) in South Korea is anticipated to amount to US$135.3.
In South Korea, the AR hardware market is rapidly evolving, driven by strong government support and increasing demand for immersive technology in education and entertainment.

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Analyst Opinion

South Korea is known for its technological advancements and innovative products, and the AR Hardware market is no exception. With a growing interest in augmented reality (AR) technology, the market for AR Hardware in South Korea is experiencing significant growth.

Customer preferences in South Korea play a crucial role in the development of the AR Hardware market. South Korean consumers are known for their tech-savviness and willingness to adopt new technologies. They value high-quality products that offer a seamless and immersive AR experience.

Additionally, the younger generation in South Korea, known as the "digital natives," are particularly interested in AR technology and are driving the demand for AR Hardware. One of the trends in the AR Hardware market in South Korea is the increasing popularity of AR glasses. These glasses provide a hands-free AR experience, allowing users to interact with virtual elements while still being aware of their surroundings.

The demand for AR glasses is driven by their versatility and convenience, as they can be used in various industries such as gaming, education, and healthcare. Another trend in the market is the integration of AR technology in smartphones. South Korea has a high smartphone penetration rate, and manufacturers are capitalizing on this by incorporating AR capabilities into their devices.

This allows users to experience AR without the need for additional hardware, making it more accessible to a wider audience. Local special circumstances also contribute to the development of the AR Hardware market in South Korea. The government has been actively promoting the adoption of AR technology through various initiatives and investments.

This support has created a favorable environment for AR Hardware manufacturers and developers, encouraging innovation and growth in the market. Furthermore, South Korea's strong gaming industry has also played a significant role in the growth of the AR Hardware market. The popularity of mobile gaming in the country has paved the way for AR gaming experiences, driving the demand for AR Hardware among gamers.

Underlying macroeconomic factors, such as South Korea's strong economy and high disposable income, have also contributed to the growth of the AR Hardware market. As consumers have more purchasing power, they are more willing to invest in AR Hardware products that enhance their digital experiences. In conclusion, the AR Hardware market in South Korea is experiencing significant growth due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

With the increasing demand for AR technology and the government's support, the market is expected to continue its upward trajectory in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR hardware revenue, which includes digital spending on hardware (headsets and glasses) that enables consumers to experience augmented reality.

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).