GCC Augmented and Virtual Reality Market Research Report: Forecast (2023-2028)

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.

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.

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,

• In 2022, Thumbay Group announced the opening of the world’s first metaverse hospital in the UAE, which would be a fully virtual hospital where patients can consult with a doctor & connect with them before even moving to further procedures.

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:

• AR Devices
  • Head Mounted Displays
  • Head-up Displays
• VR Devices
  • Head Mounted Displays
  • Gesture Control Device
  • Projector & Display Wall

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
• Industrial Manufacturing
• Energy
• Education
• Automotive
• Defence & Aerospace
• Healthcare
• Construction Industry
• Agriculture
• Gaming & Entertainment
• Others

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,

• In 2022, according to Snap Inc., in the UAE & Saudi Arabia, 7 out of 10 customers named shopping as their primary motivation for utilizing AR, which revealed that customers are interested in interacting with products online before making a purchase, which has enhanced the appeal of augmented reality try-on.

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:

• The UAE
• Saudi Arabia
• Qatar
• Kuwait
• Bahrain
• Oman

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,

• In 2022, Dubai Electricity and Water Authority (DEWA) became the first local government agency to establish its platform on the Metaverse to provide its services to consumers, staff, and members of the community, through its "DEWAVerse" platform.

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

• 2022: Meta has partnered with the UAE telecom e& (formerly Etisalat) to work on increasing customer engagement in the digital sphere by raising the presence in augmented & virtual realities.
• 2022: Google announced the launch of a new immersive digital experience on Google Arts & Culture of the last capital of the Kushite Kingdom, its powerful dynasties, and its cultural history. People can discover more about the Kushite Kingdom & see the Mero Pyramids with Google Arts & Culture by visiting their website & experiencing interactive technologies, including augmented reality (AR) & Street View.

Gain a Competitive Edge with Our GCC Augmented and Virtual Reality Market Report

1. GCC Augmented and Virtual Reality Market Report by Markntel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. GCC Augmented and Virtual Reality Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.