AR & VR Headsets Market Share
Updated: 23 Sep 2021
Global Shipments of AR and VR Headsets Set a Record Second Quarter During 2021
2.2 million AR and VR headsets were shipped globally during the second quarter of 2021. Shipments grew 126.8% year-over-year and marked a record high for the April quarter when compared to previous years. Both consumer and commercial demand remained quite strong during the quarter and likely exceeded supply which was partially hampered by global semi-conductor shortages and issues with logistics.
VR shipments grew by 136.4% and the market was driven primarily by the Oculus Quest 2 from Facebook. Beyond Facebook, Chinese companies Pico and DPVR as well as Taiwanese company HTC also helped drive the market. HTC’s new headsets and more sophisticated 6DoF content from the Chinese companies has helped drive growth and renewed interest in VR within Asia including China. Looking ahead, IDC expects VR shipments in 2021 to reach 8.4 million units and further balloon to 26.7 million shipments by the end of 2025 with a compound annual growth rate (CAGR) of 36%. Much of this growth will be driven by additional consumers purchasing newer headsets such as the next generation of the PSVR as well as the proliferation of use-cases outside of gaming (e.g. virtual events and fitness).
Meanwhile, AR shipments remained roughly flat during the second quarter of 2021Q2. The slowness in this market is not unexpected as it heavily relies on a small selection of vendors and products. During the second quarter, companies such as Microsoft, Mad Gaze, and Shadow Creator led the pack though Mad Gaze shipments declined 30.3% during the quarter which helped reduce growth in the overall market. However, IDC remains optimistic as many of the AR headsets available today are held back by bulky or cumbersome designs and limited software. These issues are expected to be resolved in coming years leading to a forecasted 145.5% CAGR. The optimism stems from the expectation of additional large tech brands joining the market as well as further miniaturization of the components to create more consumer friendly designs.