VR and AR Headset Demand Poised for Surge Amid AI Integration and Cost Reduction
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VR and AR headsets demand set to surge on AI, lower costs, IDC says
(Reuters) - Global shipments for augmented and virtual reality (AR/VR) headsets are expected to grow 41.4% in 2025, powered by more affordable devices and addition of artificial intelligence features, research firm IDC said on Monday. WHY IT'S IMPORTANT Worldwide shipments of AR and VR headsets fell 28.1% year-over-year to 1.1 million units in the second quarter, due to elevated prices and a weak economy prompting customers to rein in expenses, IDC said. The market is expected to expand to 22.9 million in 2028 from an estimated 6.7 million units this year, IDC said. KEY QUOTES "We're seeing a slew of new startups and next generation products from established brands targeting the 'smart glasses' space," said Jitesh Ubrani, research manager, Worldwide Mobile Device Trackers at IDC. "What's different this time around is the inclusion of AI along with thinner and lighter designs catering to consumers." CONTEXT In October last year, Meta Platforms launched its VR headsets called 'smart glasses' made with EssilorLuxottica's Ray-Ban. The company said in July the latest version was a bigger hit than expected. Meta is expected to launch a cheaper version of its Quest 3, called the Quest 3S, according to Bloomberg News reports. (Reporting by Harshita Mary Varghese in Bengaluru)
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VR and AR Headsets Demand Set to Surge on AI, Lower Costs, IDC Says
(Reuters) - Global shipments for augmented and virtual reality (AR/VR) headsets are expected to grow 41.4% in 2025, powered by more affordable devices and addition of artificial intelligence features, research firm IDC said on Monday. WHY IT'S IMPORTANT Worldwide shipments of AR and VR headsets fell 28.1% year-over-year to 1.1 million units in the second quarter, due to elevated prices and a weak economy prompting customers to rein in expenses, IDC said. The market is expected to expand to 22.9 million in 2028 from an estimated 6.7 million units this year, IDC said. KEY QUOTES "We're seeing a slew of new startups and next generation products from established brands targeting the 'smart glasses' space," said Jitesh Ubrani, research manager, Worldwide Mobile Device Trackers at IDC. "What's different this time around is the inclusion of AI along with thinner and lighter designs catering to consumers." CONTEXT In October last year, Meta Platforms launched its VR headsets called 'smart glasses' made with EssilorLuxottica's Ray-Ban. The company said in July the latest version was a bigger hit than expected. Meta is expected to launch a cheaper version of its Quest 3, called the Quest 3S, according to Bloomberg News reports. (Reporting by Harshita Mary Varghese in Bengaluru)
[3]
VR and AR headsets demand set to surge on AI, lower costs, IDC says
The market is expected to expand to 22.9 million in 2028 from an estimated 6.7 million units this year, IDC said. "We're seeing a slew of new startups and next generation products from established brands targeting the 'smart glasses' space," said Jitesh Ubrani, research manager, Worldwide Mobile Device Trackers at IDC. "What's different this time around is the inclusion of AI along with thinner and lighter designs catering to consumers." In October last year, Meta Platforms launched its VR headsets called 'smart glasses' made with EssilorLuxottica's Ray-Ban. The company said in July the latest version was a bigger hit than expected. Meta is expected to launch a cheaper version of its Quest 3, called the Quest 3S, according to Bloomberg News reports. (Reporting by Harshita Mary Varghese in Bengaluru)
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IDC predicts a significant increase in demand for virtual and augmented reality headsets, driven by artificial intelligence integration and lower costs. The market is expected to grow substantially, with major tech companies like Apple and Meta leading the charge.
Market Growth Projections
The demand for virtual reality (VR) and augmented reality (AR) headsets is set to experience a substantial surge, according to a recent report by the International Data Corporation (IDC). The research firm predicts that shipments of these devices will skyrocket to 30.3 million units by 2027, marking a significant leap from the 8.1 million units expected to be shipped in 2023
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.Driving Factors
Two primary factors are fueling this projected growth:
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Artificial Intelligence Integration: The incorporation of AI technologies into VR and AR devices is expected to enhance their capabilities and user experience significantly
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Cost Reduction: As technology advances and production scales up, the prices of these headsets are anticipated to become more affordable for consumers
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Key Players and Market Dynamics
The VR and AR market is witnessing intense competition among tech giants:
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Apple: The company's recent entry into the market with its Vision Pro headset, priced at $3,499, has sparked renewed interest in the sector
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Meta Platforms: Formerly known as Facebook, Meta continues to be a major player with its Quest headsets
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ByteDance: The TikTok parent company has also joined the race with its Pico brand of VR headsets
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Consumer Adoption and Use Cases
While gaming remains a primary application for VR headsets, the potential for AR in everyday life is expanding. Jitesh Ubrani, a research manager at IDC, notes that "the VR headset market has been very consumer-centric to date and will likely remain so in the near term"
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.Future Outlook
The IDC report suggests that the market for these devices will continue to evolve:
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Price Trends: Expectations are that the average selling price of AR headsets will decrease from $1,443 in 2023 to $785 by 2027
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Technology Advancements: Improvements in AI capabilities, display technologies, and overall user experience are anticipated to drive adoption
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Enterprise Applications: While consumer use dominates currently, there's potential for increased adoption in enterprise and industrial settings
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As the technology matures and becomes more accessible, the VR and AR headset market is poised for significant growth, potentially transforming how we interact with digital content and our environment.
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