Market intelligence firm International Data Corp. (IDC) projects a decline of 8.3% in worldwide shipments of augmented reality and virtual reality (AR/VR) headsets, totaling 8.1 million units in 2023. Despite the introduction of new headsets like Sony’s PSVR and Meta’s Quest 3, economic pressures on households and reduced spending in commercial sectors have curbed growth.
According to IDC, a promising resurgence is anticipated in 2024, with AR/VR headset shipments expected to surge by 46.4%. This revival is attributed to the extended availability of Meta’s Quest 3 throughout the year and the introduction of Apple’s Vision Pro, which is projected to generate significant interest despite an estimated shipment of fewer than 200,000 units.
“While the new VR headsets are expected to drive volume, they also risk alienating some consumers as average selling prices trend upwards,” said Jitesh Ubrani, research manager, Mobility and Consumer Device Trackers at IDC. “The high price tag of the Vision Pro will likely relegate the device to businesses, while the Quest 3, which is more accessible, is also pushing the limits of consumers’ wallets making VR a delight for the affluent, particularly as production ramps down on older and more affordable headsets.”
Worldwide AR/VR spending to reach $50.9 billion in 2026 — IDC
Few users causes decline of AR/VR headset shipments in 2022 — IDC
The market landscape reveals Meta’s dominance, holding a 55.2% share in 3Q23, already surpassing Apple’s projected volume for the first three quarters of 2023. This positions Meta for substantial year-over-year growth in 2024.
Interactive AR
AR headset shipments are anticipated to escalate in 2024, primarily due to the availability of lower-cost tethered headsets from companies like Xreal and Rokid. These headsets act as monitor replacements, enhancing productivity and elevating the media consumption experience. Advanced standalone headsets like Microsoft’s HoloLens 2 or the Magic Leap 2 will continue to expand but at a slower pace compared to tethered AR headsets. The total forecast for AR headset shipments in 2024 is set at 845,000 units, marking an 85.6% increase compared to 2023.
“Volumes of AR headsets are expected to move at a slower pace compared to VR headsets, but diversification among the different products will increasingly address more needs,” said Ramon Llamas, research director with IDC’s Augmented Reality and Virtual Reality program.
He noted that 3D immersive and interactive augmented reality will still receive most of the attention and find its way to enterprise users. Assisted reality (AR headsets that simply show content within a user’s line of sight) will likewise have its audience and can branch out toward consumers with gaming and multimedia. Finally, the recent attention towards mixed reality will raise the profile for augmented reality, especially for those who only want or need an AR experience.