Report Overview

High demand for augmented reality (AR) and virtual reality (VR) devices and applications in the healthcare, retail, and e-commerce sectors due to COVID-19 pandemic, rising investments in AR deployment in hospitality sector, and collaborations between telecom players and AR manufacturers to reduce latency to imperceptible levels could drive the Saudi Arabia AR and VR Market at an impressive high growth rate during the forecast period between 2022 and 2028.

Saudi Arabia AR and VR Market - Industry Trends & Forecast Report, 2028

Saudi Arabia AR and VR market size is projected to grow at a CAGR of 24.8% during the forecast period between 2022 and 2028. Growing potential of AR and VR in the gaming industry is one of the key drivers of Saudi Arabia AR and VR market. During the forecast period, the entertainment, media, aerospace, and defense companies are expected to drive the growth of the AR and VR market in Saudi Arabia. The numerous applications of AR and VR in the healthcare market will boost the industry's growth prospects in the coming years. The rise of AR and VR marketing is expected to drive market growth in the coming years. During the forecast period, the manufacturing sector is also expected to drive market demand. The education sector will undergo significant change, positively impacting the AR and VR market expansion in the coming years.

Saudi Arabia AR and VR Market – Overview

A system that combines the real and virtual worlds, allows for real-time interaction and enables precise 3D registration of real and virtual objects is known as augmented reality (AR). A type of reality called augmented reality uses technology to superimpose digital data over a real-world image. The most common name for it is augmented reality, and tablet and smartphone apps use it. As almost everyone has a smartphone, augmented reality is more effective as a branding and gaming tool. A computer-generated environment with realistic-looking objects and scenes is known as virtual reality (VR), which gives users the impression that they are completely immersed in their surroundings.

Saudi Arabia AR and VR Market

Growth Drivers

Increasing demand for AR and VR devices and applications in healthcare sector

The patient experience will be significantly enhanced by AR and VR by making it more enjoyable and exciting. By transporting them to a peaceful virtual setting during physical therapy sessions, virtual reality can help patients forget about uncomfortable treatment procedures. Better sleeping habits and psychological relief will result from this. Through wearables and tracking tools based on augmented reality, patients can also keep track of their vital signs. VR headsets can help people unwind and get over PTSD episodes. Complex patient data will be visualized, improving understanding. Simulated figures that display the precise problem areas and identify flaws can be made directly from the patient's body. Virtual body mapping can assist surgeons in simulating crucial surgical techniques beforehand, allowing them to practice in real time before the actual procedure. Sensors will enable the quick detection, visualization, and transmission of diseases. In the upcoming years, the market for augmented and virtual reality will grow more rapidly owing to these factors.

Increasing demand for VR in architecture

Expanding use of VR applications in the architecture and planning industry drives the market growth. The VR technology is used in architecture to help with decision-making and to see how proposed urban designs and architectural plans will turn out. Additionally, VR makes it possible to find faults early on and fix them, saving both time and money. To increase sales opportunities, several real estate firms have started using VR to give virtual tours of their properties. Hence, growing demand for VR from the architecture industry is projected to drive Saudi Arabia AR and VR market during the forecast period.

Restraints

Security and privacy issues associated with AR and VR

Virtual reality is widely used in the defense and aerospace sector as well as telemedicine in the healthcare sector for training and educational purposes. VR relies on internet services, cloud computing, and computing technologies to function, which makes it more vulnerable to cyberattacks, poses a threat to data integrity, and raises the possibility of data leakage. The Saudi Arabia AR and VR market faces a significant challenge because of inadequate security and privacy considerations.

Impact of COVID-19 on Saudi Arabia AR and VR Market

During the COVID-19 outbreak, several industries were temporarily shut down, and lockdowns were implemented to stop the virus's spread, impacting business operations nationwide. The demand for AR and VR grew as businesses increasingly need to conduct their operations online. Businesses now use virtual platforms to carry out ongoing operations, such as attending meetings and creating policies and strategies. Further developing as promising tools for virtual events, AR and VR technology event organizers give attendees interesting and varied experiences by hosting the event on a virtual platform and presenting it as a VR experience. Saudi Arabia AR and VR market is forecast to grow as due to the increasing popularity of virtual events.

Saudi Arabia AR and VR Market

Segmental Coverage

Saudi Arabia AR and VR Market - By Product

By product, Saudi Arabia AR and VR market is categorized into Head Mounted Displays, Handheld Applications, Smart Glass, Head-up Displays, and AR Software. The head-mounted display (HMD) device segment accounted for a major market share in 2021 and is expected to continue its domination in the Saudi Arabia AR and VR market from 2022 to 2028. The growing importance of VR headsets in commercial and consumer applications is driving the market in Saudi Arabia. The diversity and flexibility of HMDs, such as hybrid, tethered, and self-contained HMDs, are driving the segment growth. These devices are used to provide training in a variety of industries, including military, aerospace, engineering, research, and medicine, and they use interactive virtual pictures to illustrate a wide range of use cases. Companies are constantly involved in technological developments in this field to provide customers with a more immersive experience.

Saudi Arabia AR and VR Market - By Organization Size

By organization size, Saudi Arabia AR and VR market is divided into Small Enterprises, Medium-sized Enterprises, and Large Enterprises.

Saudi Arabia AR and VR Market - By Offering

On basis of offering, Saudi Arabia AR and VR market is divided into Hardware, Software, and Services segments. The hardware sector led the market in 2021 and is expected to continue to do so throughout the forecast period. The rapid adoption of smartphones, tablets, and other high-tech electronic devices is aiding in the segment's expansion. Consoles, output devices, and input devices are all part of the hardware segment. It is expected that the rapid uptake of VR headsets in business settings, theme parks, and other locations will present growth opportunities for original equipment manufacturers (OEMs).

Saudi Arabia AR and VR Market - By Application

On basis of application, Saudi Arabia AR and VR market is divided into Enterprise and Consumer. Due to the growing demand for AR and VR technology in the gaming and entertainment industries, the consumer segment is expected to experience significant growth throughout the forecast period. The need for improved organizational training tools, better communication, and collaboration across various companies will having a positive impact on the growth of Enterprise segment.

Saudi Arabia AR and VR Market - By End User

On basis of end user, Saudi Arabia AR and VR market is divided into Retail, Healthcare, Hospitality, Aerospace & Defense, Automotive, Architecture, and Others. Due to the wide range of opportunities for AR and VR in the healthcare sector, including disease awareness, medical marketing, and medical learning & training, the healthcare segment is expected to grow significantly during the forecast period. VR training programs are offered by organizations, such as ImmersiveTouch, Inc. and Osso VR, Inc., for surgeons and medical students. To help medical professionals, learn more precisely, virtual surgeries, emergency training, and VR anatomy applications are high in demand.

Competitive Landscape

Saudi Arabia AR and VR market is fiercely competitive. Prominent players in the market include Cubix, TechGropse Pvt. Ltd., Midwam, Scope Technologies Co, CodesOrbit PVT LTD, Golden Logic Company, EON Reality, iSpectra, Visual Experience, Dolf Technologies, and Miraj Media. These market leaders use key strategies, such as new product and service launches, mergers and acquisitions, partnerships, collaborations, and joint ventures. To further grow their market share, these companies are also focusing on investing in innovations and expansions.

Scope of the Report

By Product

• Head Mounted Display

• Handheld Applications

• Smart Glass

• Head-up Display

• AR Software

By Organization Size

• Small Enterprises

• Medium-sized Enterprises

• Large Enterprises

By Offering

• Hardware

• Software

• Services

By Application

• Enterprise

• Consumer

By End User

• Retail

• Healthcare

• Hospitality

• Aerospace & Defense

• Automotive

• Architecture

• Others