AR/VR Headsets on the Decline as Mixed Reality Emerges

Worldwide, augmented and virtual reality headset manufacturers shipped 8.8 million units in all of 2022, down 20.9% over the previous year, according to a new report from market research firm IDC.

IDC said that in 2022, Meta owned nearly 80% of the market, with ByteDance coming in a distant second at 10%. "The remaining top 5 spots," according to IDC, "were held by DPVR, HTC, and iQIYI. One other notable company was Nreal, [which] captured the sixth position [among] AR/VR headsets but held the top spot in the AR market by shipping nearly [100,000] units over the course of 2022."

"While Meta and ByteDance duke it out in the VR segment, Nreal has been able to slowly grow its presence by appealing to mobile gamers," said Jitesh Ubrani, research manager, Mobility and Consumer Device Trackers at IDC, in a prepared statement. "Though it's still early days for AR and VR, Meta has been able to build a moat for itself through its various first- and third-party content. This is where other players such as Sony and potentially Apple can provide meaningful competition, though in the long run it'll put pressure on others including ByteDance and Nreal."

"Another area that is slowly gaining attention is mixed reality — devices that can switch between augmented and virtual reality," added Ramon T. Llamas, research director for Mobile Devices and AR/VR at IDC. "The release of the Meta Quest Pro last fall and the announcement of HTC's XE Elite earlier this year demonstrate clear innovation as to what is possible for the AR/VR market, and it should not be difficult to imagine others following suit. Moreover, commercial users with multiple use cases – ranging from on-boarding and orientation to training and collaboration — may gravitate to its appeal. However, given the still low penetration of AR and VR into the market, it may take several cycles for mixed reality headsets to gain salience."

For more information, visit IDC's Worldwide Quarterly Augmented and Virtual Reality Headset Tracker.

About the Author

David Nagel is the former editorial director of 1105 Media's Education Group and editor-in-chief of THE Journal, STEAM Universe, and Spaces4Learning. A 30-year publishing veteran, Nagel has led or contributed to dozens of technology, art, marketing, media, and business publications.

He can be reached at [email protected]. You can also connect with him on LinkedIn at https://www.linkedin.com/in/davidrnagel/ .


Featured

  • laptop and fish hook

    Security Firm Identifies Generative AI 'Vishing' Attack

    A new report from Ontinue's Cyber Defense Center has identified a complex, multi-stage cyber attack that leveraged social engineering, remote access tools, and signed binaries to infiltrate and persist within a target network.

  • From Fire TV to Signage Stick: University of Utah's Digital Signage Evolution

    Jake Sorensen, who oversees sponsorship and advertising and Student Media in Auxiliary Business Development at the University of Utah, has navigated the digital signage landscape for nearly 15 years. He was managing hundreds of devices on campus that were incompatible with digital signage requirements and needed a solution that was reliable and lowered labor costs. The Amazon Signage Stick, specifically engineered for digital signage applications, gave him the stability and design functionality the University of Utah needed, along with the assurance of long-term support.

  • teacher

    6 Policy Recommendations for Incorporating AI in the Classroom

    The Southern Regional Education Board's Commission on AI in Education has published six recommendations for states on adopting artificial intelligence in schools, colleges, and universities. The guidance marks the commission's first release since it was established last February, with more recommendations planned in the coming year.

  • various technology icons including a cloud, AI chip, and padlock shield above a laptop displaying charts and cloud data

    AI-Focused Data Security Report Identifies Cloud Governance Gaps

    A new Varonis data security report notes that excessive permissions and AI-driven risks are leaving cloud environments dangerously exposed.