The market for VR headsets is declining, but mixed reality (MR) devices are gaining popularity. According to a report by IDC, VR headset sales sharply decreased in the first quarter of 2024. Shipments dropped by 67.4% compared to the previous year, primarily due to the increasing interest in MR devices.
IDC’s report suggests that consumers are shifting towards MR headsets, which combine virtual and augmented reality, leading to reduced demand for pure VR devices. Analysts expect traditional VR headsets to gradually fade away in the coming years.
Despite the sales decline, the average price of headsets actually increased by over $1000 in Q1 2024. This is largely attributed to the launch of Apple Vision Pro, luxury MR headphones. Apple quickly climbed to second place in sales, surpassing established companies like Meta, HTC, and XREAL. However, Meta is expected to maintain its leadership in 2024 due to its strategy of offering more affordable VR headsets.
Despite the drop in consumer sales, reports indicate growth in the use of XR (extended reality) devices in business. A study conducted by HTC VIVE revealed that 92% of financial professionals reported positive ROI from XR investments, and 82% believe their companies will utilize XR technology in the next five years.
Overall, the XR headset market is projected to grow at a compound annual growth rate (CAGR) of 43.9% between 2024 and 2028. A Dimension Market Research report forecasts that the AR/VR market in healthcare will reach $19.6 billion by 2033, a significant increase from $3.7 billion in 2024.
