AR & VR Headsets Market Share

Updated: 18 Dec 2020

AR/VR Headset Market, in the Midst of a Product Transition, Declines for the Fifth Straight Quarter

The worldwide AR/VR headset market declined for the 5th quarter in a row as 2020Q3 shipments totalled 569K, down 57.1% from last year. Though the market declined, the slowdown was not for the lack of demand or interest. Rather, major players such as Oculus and Sony were essentially in the midst of a product transition, leading to large declines in VR headset shipments. Meanwhile, AR headset shipments grew 61.9% to over 66K.

Product Category 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3
Augmented Reality -0.8% +9.6% -27.8% -24.2% +92.6% +51.7% +61.9% +73.4% +86.8% +213.5% +320.0% +208.7%
Virtual Reality +25.2% +40.0% -23.6% -27.9% -43.3% -43.7% -60.9% +70.0% +139.6% +76.6% +225.4% +18.7%

Virtual Reality: Amongst VR companies, Facebook/Oculus had one of the largest declines as the original Quest approached end of life despite having high demand (demonstrated by constant sellouts across multiple channels and countries). Similarly, Sony's launch of the PS5 has led to lesser focus on the PSVR as the headset was originally designed for the PS4. The decline of such top vendors allowed DPVR to take the top spot as the company shipped over 100K headsets globally. Looking ahead, IDC expects the VR market to rebound in Q4 2020 as the launch of the Quest 2 along with other headsets will drive sales.

Augmented Reality: The AR headset market continued its healthy growth. The pandemic has been a boon for the market as remote collaboration and tele-medicine have seen surges in demand. This has allowed vendors such as Microsoft, Thirdeye, RealWear, and others gain some traction. However, consumer oriented Mad Gaze took the top spot as its headsets remain somewhat popular in Asia and they are also seeding a developer ecosystem.

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