Market Definition
Augmented reality (AR) allows the projection of digital media, such as pictures, movies, and 3D models, onto the physical world. By fusing digital data with the user's environment in real-time, augmented reality (AR) improves the user's sense of reality. Virtual reality (VR), on the other hand, fabricates a wholly artificial setting that mimics a user's actual physical presence in a virtual environment. The user cannot see or interact with their physical world since they are engrossed in the simulated 3D environment.
Market Insights & Analysis: GCC Augmented and Virtual Reality Market (2023-28)
The GCC Augmented and Virtual Reality market is projected to grow at a CAGR of around 39% during the forecast period, i.e., 2023-28. The market is presumed to enhance owing to the growing usage of Augmented Reality (AR) & Virtual Reality (VR) technologies across a variety of sectors, including healthcare, education, retail, and entertainment. After the impact of the COVID-19 pandemic, i.e., during 2021-2022, the adoption of these technologies grew as businesses & organizations explored novel ways to interact with clients & staff online.In general, technical developments, rising investments, and the rising demand for immersive & interactive experiences across various industries have been fueling the market's growth trajectory during the historical years.
Further, due to enhanced investments in smart city projects & initiatives, the market has been experiencing significant growth across the GCC region for these technologies. It is majorly as the construction industry across the countries like Saudi Arabia, the UAE, Qatar, etc., is one of the earliest adopters of these technologies. Construction firms are adopting these technologies to improve Urban planning & infrastructure management.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 39% |
| Country Covered | The UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, Oman |
| Key Companies Profiled | Sony Corporation, Lenovo, Autodesk Inc., HTC Corporation, Google, Barco, HP Development Company L.P., Microsoft, LG Electronics, Meta, Others |
| Unit Denominations | USD Million/Billion |
In addition, these technologies also allow the creation of a 3D model of the buildings, which helps the planners & the architects to easily identify the flaws in the design & modify it accordingly even before starting the construction projects. Hence, the rising number of construction projects across the region has been escalating the adoption of these technologies during 2018-2022.
Moreover, educational institutions in the GCC region are becoming aware of how AR & VR can improve students' learning experiences. These technologies have been helping students visualize arduous concepts, increase engagement & retention, and create more individualized learning environments by offering immersive & interactive experiences. Hence, this has led educational organizations across the region to adopt these technologies to educate disciplines like science, technology, engineering, and math. For instance,
The American University of Sharjah, in the United Arab Emirates, announced the integration of virtual reality to instruct civil engineering students about building design & construction methods, in 2021. Also, healthcare training is increasing the integration of AR and VR to replicate medical procedures and teach medical staff by performing surgeries in a virtual environment. Hence, the adoption of AR & VR solutions in the education sectors like healthcare, science, math, technology, etc., is anticipated to considerably support the growth of the market during 2023-2028.
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Market Dynamics
Key Driver: Wide Adoption of AR & VR in Gaming
In GCC, the adoption of augmented & virtual reality is rising significantly across the gaming industry as game creators are utilizing this technology to create immersive gaming experiences. In addition, the popularity of games like Fortnite & Pokemon Go across countries like the UAE, Qatar, etc., has increased public awareness of the potential applications & advantages of the technology in other fields, including tourism, healthcare, and education.
Furthermore, due to the popularity of these technology-based games, there is now a desire for similar experiences across other industries as well. Hence, to achieve sharper visuals, quicker processing, and more lifelike experiences, this technology experienced a significant demand in the gaming industry across the GCC region.
Possible Restraint: Arising Safety Concerns Due to Lack of Proper Regulation
The lack of regulations has been significantly affecting the Gulf Cooperation Council's acceptance & development of AR & VR technology. There are currently only a few rules & standards governing these technologies in the area, which has been imposing legal & regulatory difficulties for companies wishing to use these technologies. Also, the collection & processing of a large amount of personal data by AR & VR technologies have the potential to violate consumers’ right to privacy, which further restricts their adoption among end-users.
In addition, the development of virtual content by using these technologies in the GCC has also been found to present intellectual property rights challenges across the region. Hence, the lack of clear rules & procedures for the production & dissemination of virtual content in the GCC has been negatively affecting the adoption of these technologies among end-users, therefore impeding market growth.
Growth Opportunity: Growing Advancement in Construction Industry to Create the Demand
As the Gulf Cooperation Council (GCC) countries' economies depend heavily on the construction sector, the demand for innovative & cutting-edge technology that may boost building projects' productivity, efficiency, and safety is also advancing considerably. The potential of augmented reality & virtual reality technology to revolutionize the construction sector has garnered a lot of interest in recent years. The design, planning, building, and maintenance phases of a construction project have all been found to show benefits from the usage of these technologies as architects & engineers have been inclined towards AR technology to see & simulate building plans, allowing them to find & fix any design flaws before the construction even starts.
As an alternative, VR technology has been found to offer a virtual tour of the building site, enabling stakeholders to experience the project before it is created & make any necessary changes. Further, these technologies are also used for providing workers with virtual training & highlighting potential safety dangers on the construction site. Henceforth, with growing awareness regarding their use cases, along with rising demand for advanced technologies, the demand for these technologies is expected to soar across the construction sector in the forecasted years.
Key Trend: Rising Adoption in Healthcare Industry
AR & VR technologies are being highly preferred in the healthcare sector across the GCC countries like Saudi Arabia, the UAE, etc., to improve patient outcomes, advance medical education & training, and streamline healthcare operations during recent years. Also, the demand for these solutions is rising across medical education & training as it provides an immersive & interactive teaching environment for medical professionals.
Hence, with growing awareness regarding the benefits of using AR & VR technologies across the healthcare sector, governments across the region are also taking initiatives to boost their integration in hospitals across the region. This has led healthcare businesses to leverage the benefits of these technologies & improve their offering to patients by providing increased comfort. For instance,
Hence, by enhancing patient outcomes, streamlining healthcare operations, increasing investment in startups, and hastening the adoption of telemedicine, the use of these technologies in healthcare is assisting the market growth in the GCC region.
Market Segmentation
Based on the Device Type:
Among them, the Head-up Display successfully captured a sizeable portion of the GCC Augmented and Virtual Reality market in recent years and it is anticipated that it would continue to dominate over the projected period. Due to their portability and ease of use, they are becoming more popular among the end-users, like the gaming & healthcare industry across the GCC. Also, owing to their better accessibility and cost, mobile-based head-up displays like Google Cardboard and Samsung Gear VR have gained widespread use across the region & are anticipated to grow in the forecasted years as well.
Based on End Users:
E-commerce & Retail have been one of the most emerging segments in the GCC Augmented and Virtual Reality market during the past few years & are anticipated to acquire a major share in the upcoming years. These technologies allow customers to have more immersive & interactive shopping experiences in the e-commerce sector by visualizing things in 3D & virtually trying them on before making a purchase. It helps in enhancing customer satisfaction & the number of returns has been observed to decrease after using virtual reality to try-on products before buying. For instance,
Hence, the integration of these technologies on e-commerce websites for consumers to experience an immersive familiarity with the product they are about to buy is anticipated to upscale the segment's growth during the forecast period.
Country Insights
Geographically, the market expands across:
Geographically, the UAE has witnessed considerable growth in the market during the past few years. It is mainly after the UAE government has been aggressively pushing the development & implementation of these technologies across multiple sectors after seeing the potential of AR & VR to spur economic growth & diversification.
Moreover, the UAE government has launched several initiatives to promote the use of these technologies in construction, including the "Dubai 3D Printing Strategy" & the "Dubai Virtual Reality (VR) Lab." Further, the government of the country is also implementing these solutions on its platform to implement & improve its ongoing & upcoming initiatives, which helps increase stakeholder satisfaction & company growth, boost productivity, and cut costs. For instance,
Therefore, the rising inclination of the UAE government toward digital innovation & enhanced initiatives to support the adoption of these technologies across different industry verticals would amplify its growth in the upcoming years.
Recent Developments in the GCC Augmented and Virtual Reality Market
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Frequently Asked Questions
A. The growth rate or CAGR of the GCC Augmented and Virtual Reality Market during 2023-28 would be around 39%.
A. The widening adoption of AR & VR in gaming is expected to drive the GCC Augmented and Virtual Reality Market during 2023-28.
A. The top players in the GCC Augmented & Virtual Reality Market are Sony Corporation, Lenovo, Autodesk Inc., HTC Corporation, Google, Barco, HP Development Company L.P., Microsoft, LG Electronics, Meta, and Others.
A. Augmented Reality is the leading technology in the GCC Augmented and Virtual Reality Market.
A. The UAE would present growth prospects in the GCC Augmented and Virtual Reality Market during 2023-28.
A. The rising adoption in the healthcare industry is the key trend shaping the growth of the GCC Augmented and Virtual Reality Market.
A. The gaming sector is the most potential end-user of the industry.
A. Lack of proper regulation would possibly restrain the growth of the GCC Augmented and Virtual Reality Market.
