AR/VR Headsets Return to Growth in the First Quarter
June 26, 2019 | IDCEstimated reading time: 3 minutes
The worldwide augmented reality (AR) and virtual reality (VR) headset market returned to growth after a year of decline as global shipments during the first quarter of 2019 (1Q19) reached 1.3 million, up 27.2% from the same quarter last year. The overall AR/VR market has begun to grow again thanks to a surge in shipments of standalone head-mounted displays (HMDs) and tethered HMDs that helped to offset the decline in the low-end, screenless viewer segment, according to the International Data Corporation (IDC) Worldwide Quarterly Augmented and Virtual Reality Headset Tracker.
VR headsets represented 96.6% of the combined AR/VR market during the quarter with strong volumes from top companies such as Sony, Facebook, HTC, Pico, and 3Glasses. The top five vendors captured 65.1% of the total VR headset market.
"Facebook has promised to bring VR to the masses and it took its latest steps toward realizing this vision with new standalone and tethered headset releases during the quarter," said Jitesh Ubrani, research manager for IDC's Mobile Device Trackers. "The company’s new $399 standalone Oculus Quest began shipping this quarter and has enjoyed positive reviews, and its new Rift S offers an updated take on its pioneering tethered headset. These products, along with other new offerings from companies such as HTC and Valve, should position the VR market for solid growth through the rest of the year."
While AR market volumes remain low, there is clear momentum here as well. Top AR headset makers included Epson, Lenovo, Vuzix, Google, and RealWear during 1Q19.
"Enterprise AR is evolving quickly and many companies are actively looking for hardware solutions they can use to improve existing business processes and drive new ones," said Tom Mainelli, group vice president, Consumer and Devices Research at IDC. "Vendors shipping robust, ready-to-use products today are seeing increased traction and we expect their volumes to increase notably through the rest of this year. We have also seen new product anouncements from players large and small that should help drive increased momentum and shipments when these products begin shipping later this year."
IDC anticipates the growth trend established in the first quarter will continue as global shipments for AR/VR headsets are forecast to reach 7.6 million units in 2019, up from 5.9 million in 2018. Much of this growth will occur in the commercial segment, which will consume roughly one of every three headsets shipped in 2019.
IDC expects standalone and tethered headsets to drive the VR market growth. Standalone VR headsets will capture 38.2 % of the VR market in 2019, up from 26.6% in 2018. Tethered VR headsets will have a share of 46.1% this year, versus 44.1% last year. Finally, screenless viewers will decline to 15.7%, down from 29.3% last year.
Standalone will play an even larger role in AR for 2019, where IDC expects it to capture 53.9% of the market, up from 47.8% last year. Tethered and screenless viewers will capture 27% and 19.1% in 2019, respectively. While the tethered segment is small today, IDC expects it to play a larger role in the future, as it's likely the first truly consumer-oriented products will use this form factor down the road.
About IDC Trackers
IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.
Suggested Items
SMC Korea 2024 to Highlight Semiconductor Materials Trends and Innovations on Industry’s Path to $1 Trillion
04/24/2024 | SEMIWith Korea a major consumer of semiconductor materials and advanced materials a key driver of innovation on the industry’s path to $1 trillion, industry leaders and experts will gather at SMC (Strategic Materials Conference) Korea 2024 on May 29 at the Suwon Convention Center in Gyeonggi-do, South Korea to provide insights into the latest materials developments and trends. Registration is open.
Orbex Secures £16.7m Investment for Rocket ‘Ramp Up’ Period
04/24/2024 | OrbexThe UK spaceflight company Orbex has received £16.7m from six backers in an update to its Series C funding round.
Real Time with... IPC APEX EXPO 2024: Going Vertical: SCHMID's Advanced Solutions for Printed Circuit Boards
04/24/2024 | Real Time with...IPC APEX EXPOEditor Marcy LaRont chats with Bob Ferguson, the president of SCHMID, about advanced solutions for PCBs and the equipment they are highlighting at this year's show. He delves into vertical no-touch handling systems and the prospect of achieving sub-10-micron lines. Inspired by SCHMID's technology, Bob expresses excitement about where the industry is today.
Real Time with... IPC APEX EXPO 2024: Advancements in Laser Depaneling with LPKF
04/24/2024 | Real Time with...IPC APEX EXPOJake Benz, LPKF sales manager for North America, discusses the company's advancements in laser depaneling. LPKF has introduced a green wavelength laser for processing rigid FR-4 circuit boards, bringing significant gains in processing speeds to market. The company transitioned from IR CO2 to UV wavelength due to heat and burning issues.
Adura Solutions Exhibits at Del Mar 2024
04/24/2024 | Adura SolutionsSumit Tomar, CEO of Adura Solutions, has announced that his company will be exhibiting at this year’s Del Mar Electronics and Manufacturing Show to be held at the Del Mar Fairgrounds, San Diego, California, April 24-25.