Middle East & Africa Immersive Entertainment Market Forecast to 2031 - Regional Analysis - by Component, Technology, and End User

The Middle East & Africa immersive entertainment market was valued at US$ 5.27 billion in 2023 and is expected to reach US$ 25.59 billion by 2031; it is estimated to record a CAGR of 21.8% from 2023 to 2031.

Increasing Adoption of Artificial Intelligence Technology Bolsters Middle East & Africa Immersive Entertainment Market

Over the past few years, technological advancements have brought closer to completely realistic and immersive experiences in VR and immersive entertainment. The application of AI to improve VR and immersive entertainment capabilities has been one of the main forces behind this advancement. AI is the process of educating robots to analyze and interpret data to make predictions and judgments. It can take many different forms in the context of VR and immersive entertainment such as improving the realism of virtual settings or producing lifelike interactions between users and virtual items. The power of AI to create realistic and dynamic landscapes is one of the most significant ways technologies transform VR and immersive entertainment.

This is particularly crucial in the gaming industry, as players anticipate realistic and captivating settings that react to their choices and actions. AI can also improve the realism of virtual characters in VR and immersive entertainment by combining ML and computer vision, which teaches computers to make virtual figures move and animate realistically.

The creation and use of VR and immersive entertainment are already significantly impacted by AI, and in the years to come, this influence will more likely increase. AI is contributing to developing more immersive and captivating user experiences by increasing the realism of virtual environments, facilitating better interactions between users and virtual objects, and automating content creation.

Increasing adoption of cutting-edge technologies such as AL and ML supports businesses to access real-time customer engagement. In March 2023, Infinite Reality announced the launch of an AI feature set offering customized recommendations for immersive events, entertainment, and retail experiences. The new capabilities in all Infinite Reality experiences and products will enable users to access real-time engagement with an avatar salesperson who can be quickly and intuitively trained on a brand's products and services and a consumer's preferences. Thus, the rising adoption of AI technologies is expected to emerge as a key trend in the immersive entertainment market during the forecast period.

Middle East & Africa Immersive Entertainment Market Overview

The Middle East & Africa immersive entertainment market is segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The broad application of immersive technologies in various industries such as media & entertainment, gaming, design & architecture, education, and retail is primarily driving the Middle East & Africa market growth. The gaming population is expanding rapidly in the Middle East & Africa countries, particularly in Saudi Arabia, Egypt, and the UAE. The young, tech-savvy audience is open to novel game experiences such as VR.

Moreover, the increasing adoption of technologies in gaming and entertainment is ultimately propelling the growth of immersive entertainment market, spurring demand for immersive technologies in training and education, healthcare applications, and architecture and design industries. Moreover, there are various game developers in the Middle East & Africa indulging in the development of games for businesses and brands. The brands may indulge in the development of games for educational or entertainment purposes. Thus, all these factors propel the immersive entertainment market growth in the Middle East & Africa.

Middle East & Africa Immersive Entertainment Market Segmentation

The Middle East & Africa immersive entertainment market is categorized into component, technology, end user, and country.

• Based on component, the Middle East & Africa immersive entertainment market is bifurcated into hardware and software & services. The hardware segment held a larger market share in 2023.
• By technology, the Middle East & Africa immersive entertainment market is categorized into virtual reality (VR), augmented reality (AR), mixed reality (MR), and others. The virtual reality (VR) segment held the largest market share in 2023.
• In terms of end user, the Middle East & Africa immersive entertainment market is categorized into media & entertainment, gaming, design & architecture, retail, education, and others. The gaming segment held the largest market share in 2023.
• By country, the Middle East & Africa immersive entertainment market is segmented into the UAE, Saudi Arabia, South Africa, and the Rest of Middle East & Africa. The UAE dominated the Middle East & Africa immersive entertainment market share in 2023.

Microsoft Corp, Qualcomm Inc, Google LLC, Sony Group Corp, Infosys Ltd, HTC Corp, Samsung Electronics Co Ltd, Apple Inc, and Salesforce Inc are some of the leading companies operating in the Middle East & Africa immersive entertainment market.

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