Things aren't going very well for virtual reality. Counterpoint has taken stock of this market for 2024, which continues to plunge for the third consecutive year: shipments fell by 12% last year. The launch of the Quest 3S, the latest affordable model from Meta, helped limit the damage in the 4th quarter, but shipments were still down 5% compared to the previous year.
The Vision Pro in very small form
The ranking by manufacturer unsurprisingly gives Meta the big winner: the social networking giant's headsets took 77% of deliveries last year, and even 84% in the 4th quarter thanks to the Quest 3S, which confirms previous estimates.
Sony, a distant 4th in the VR market with the PS VR2, recorded a market share of 8% in 2024, with a rebound of 1 point (to 9%) in the last quarter. The manufacturer has multiplied promotions to clear out stocks, whether for Black Friday or Christmas. Sector specialists Pico and DPVR finished in 2nd and 4th place respectively, with 11% and 5%.
With the Vision Pro, which is as much a virtual reality headset as it is a mixed reality headset, Apple finished in third place on the podium with 9% of shipments. Not bad for a €4,000 product, although it also reflects the relatively modest volumes of the VR market. Counterpoint nevertheless notes that the Apple company fell 43% in the fourth quarter compared to the previous year, and it could have been worse if the Vision Pro hadn't been launched. in several major markets, including Taiwan and South Korea.
Hardware limitations, a lack of compelling VR content, and compelling use cases explain the lack of consumer interest in this product, analysts say. However, they noted a resurgence of interest from professional customers, particularly in the entertainment, education, healthcare, and defense sectors.
Taking into account the virtual reality and mixed reality segments, shipments are expected to increase in 2025 and 2026 (+30% expected next year). A rebound that should largely rely on AR combined with AI. "A growing number of companies are positioning augmented reality smart glasses as a key platform for AI integration, thus promoting market expansion," writes Counterpoint.
And then there's Android XR, Google's new operating system. It powers Samsung's "Project Moohan" headset, which is expected to launch soon. And other manufacturers could follow suit.
Source: Counterpoint
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