AR & VR - Norway

Norway

In Norway, revenue in the AR & VR market market is projected to reach US$182.8m in 2024.
This revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 9.03%, leading to a projected market volume of US$281.7m by 2029.
The largest market within this market in Norway is VR Hardware, which is anticipated to have a market volume of US$58.1m in 2024.
While most revenue is generated the United States, in Norway is also expected to contribute significantly, with a projected market volume of US$10,900.0m in 2024.
By 2029, the number of users in the AR & VR market market in Norway is expected to amount to 5,081.0k users.
User penetration in Norway will be 89.0% in 2024 and is anticipated to reach 89.0% by 2029.
Moreover, the average revenue per user (ARPU) in Norway is expected to amount to US$37.2.
Norway's AR & VR market is witnessing a surge in innovative applications across sectors like education and tourism, reflecting the nation's strong commitment to technological advancement.

Definition:

Augmented reality (AR) and virtual reality (VR) make it possible to combine the real and virtual worlds. AR is generally accessed via mobile phones and primarily relies on lenses. AR effects can be created by using lenses in social media apps, for example. AR is also used for displaying digital 3D objects in our surroundings, e.g., in gaming or eCommerce apps. Meanwhile, VR technology allows users to dive into the virtual world, and, unlike AR technology, it requires a headset device which enables the creation of virtual worlds.

Structure:

The AR & VR market consists of six different markets: AR Advertising, AR Hardware, AR Software, VR Advertising, VR Hardware, and VR Software. AR Advertising covers mobile advertising that is displayed in the most prominent social media apps. AR Hardware comprises AR headsets and glasses. AR Software is divided into three different application types, namely social media, gaming, and eCommerce applications, which can be accessed via the most prominent app stores. VR Advertising covers in-game advertising as well as advertising in VR videos. VR Hardware comprises both tethered head-mounted displays (HMDs) and stand-alone HMD headsets. Lastly, VR Software covers VR games and VR videos, which require headsets.

Additional information:

The market comprises revenues, users, average revenue per user, and penetration rates. Revenues are generated through in-app purchases, advertising spending, and consumer spending on apps, games, and hardware such as headsets or glasses. Sales channel data shows both online and offline revenues, which include VAT. The market only displays B2C revenues and users for the above-mentioned markets and markets; B2B and B2G revenues are not included. Additional definitions for each market can be found on the respective market pages.
Market numbers for VR headsets are also featured in the Consumer Market Insights, namely in the Gaming Equipment market of the Consumer Electronics market. Unlike the VR Hardware market in the Advertising & Media Outlook, the Gaming Equipment market also covers smartphone VR devices.
Key players in the market include companies such as Meta (Oculus VR), Microsoft (HoloLens), Snap Inc. with different lenses, and Nvidia, which offers computing hardware components.
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Analyst Opinion

The AR & VR market in Norway has been experiencing steady growth in recent years, driven by customer preferences for immersive and interactive experiences, as well as advancements in technology.

Customer preferences: Norwegian customers have shown a strong interest in AR & VR technologies, as they provide a unique and engaging way to experience content. The younger generation, in particular, has been quick to embrace these technologies, using them for gaming, entertainment, and educational purposes. Additionally, businesses in various industries have recognized the potential of AR & VR to enhance their products and services, leading to increased demand from corporate customers.

Trends in the market: One of the key trends in the AR & VR market in Norway is the integration of these technologies into various industries. For example, the tourism sector has been using AR & VR to provide virtual tours of popular attractions, allowing potential visitors to get a taste of what they can expect before making a booking. Similarly, the real estate industry has been utilizing these technologies to offer virtual property viewings, saving time and resources for both buyers and sellers. Another trend in the market is the development of AR & VR applications for training and education purposes. Norwegian companies and educational institutions have recognized the potential of these technologies to provide realistic and immersive training experiences. This has been particularly relevant in industries such as healthcare, where medical professionals can practice complex procedures in a safe and controlled virtual environment.

Local special circumstances: Norway's strong focus on innovation and technology has contributed to the growth of the AR & VR market. The country has a highly skilled workforce and a supportive business environment, which has attracted both local and international companies to invest in AR & VR development. Additionally, the Norwegian government has been actively promoting the adoption of these technologies through various initiatives and funding programs.

Underlying macroeconomic factors: The growth of the AR & VR market in Norway is also influenced by underlying macroeconomic factors. The country has a high GDP per capita, which indicates a relatively affluent population with disposable income to spend on new technologies. Furthermore, Norway has a strong digital infrastructure, including widespread access to high-speed internet and advanced mobile networks, which supports the adoption and use of AR & VR technologies. In conclusion, the AR & VR market in Norway is experiencing growth due to customer preferences for immersive experiences, integration of these technologies into various industries, Norway's focus on innovation and technology, and underlying macroeconomic factors such as high GDP per capita and strong digital infrastructure. As these trends continue to evolve, the market is expected to further expand in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the AR & VR market. AR and VR enable consumers to experience a new dimension, using either a headset or installed units, as they combine the real and virtual worlds. Consumer revenue figures refer to revenues relating to AR hardware, AR software, VR hardware, VR software, and spending on AR and VR advertising. Both digital and non-digital revenues are included.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports. In addition, we use relevant key market indicators and data from country-specific associations, such as consumer spending, internet penetration, 4G coverage, and historical developments. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, 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 market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. 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).