The latest IDC report has revealed what will the growth in AR VR headset market in 2025 and be beyond.
Global AR/VR headset shipments grew by 12.8 percent in Q3 2024, ending two quarters of decline.
Growth was primarily driven by Meta, which captured a 70.8 percent market share.
Meta led the market, with Quest 3 gaining traction due to broader content availability and Prime Day promotions.
Sony PSVR2 secured second place with a 6.7 percent market share, benefiting from PC gamer interest and promotions.
Other top five vendors are Apple, ByteDance, and XREAL.
“Sony and ByteDance’s dedication to headset making seem to be wavering as shipments for both vendors continue to decelerate,” said Jitesh Ubrani, research manager, Worldwide Mobile Device Trackers at IDC. “This in turn provides an opportunity for brands such as XREAL and VITURE who appeal to gamers while innovating on both hardware and software.”
Sony and ByteDance face slowing shipments, creating opportunities for XREAL and VITURE to attract gamers through hardware and software innovations.
Mixed Reality headsets like the Quest 3 are gaining prominence and may eventually replace augmented reality headsets.
Mixed Reality headsets expected to grow 21.7 percent in 2025, reaching 7.7 million units.
Extended Reality devices (heads-up displays and content mirroring) will see intensified competition, driven by Google’s Android XR platform and new players.
Extended Reality category will double in size in 2025, achieving a CAGR of 85.7 percent through 2028.
True Augmented Reality devices (e.g., Meta’s Orion) will remain niche due to technical challenges. Augmented Reality will be growing from 59,000 units in 2024 to 377,000 by 2028.
Integration of AI and heads-up displays presents a compelling future for AR/VR technology in both consumer and enterprise markets.
The rivalry between Apple, Meta, and Google (Android XR) will drive AR and VR market advancements.
