International Data Corporation (IDC) has lowered its forecast for augmented and virtual reality (AR/VR) headsets in 2023.
Global shipments of augmented reality and virtual reality headsets are expected to reach 10.1 million units this year, according to IDC Worldwide Quarterly Augmented and Virtual Reality Headset Tracker.

Despite the revised outlook, AR / VR headset shipments are expected to grow 14 percent in 2023 and accelerate over the 2023-2027 forecast period with a five-year compound annual growth rate (CAGR) of 32.6 percent.

Sony’s new PSVR2 and Apple’s foray into the space will help drive additional volume while new devices from Meta and Pico, expected towards the end of 2023, will build momentum for VR in 2024.

AR brands such as Xiaomi, Oppo, and TCL are all expected to drive consumer awareness for the category over the course of the next 6-18 months.

Standalone VR headsets will face challenges in 2023 due their extreme popularity in 2020 and 2021 leading to unfavorable year-over-year comparisons and the dependence on Meta’s product launch schedule. Tethered VR as well as tethered AR glasses headsets will face an easier path to growth due to the dearth of volumes in 2022.

“Consumer VR usage has dominated the AR/VR market, but growing consumer interest in AR is starting to reshape that segment,” Ramon T. Llamas, research director for IDC’s Augmented and Virtual Reality research team, said. “Commercial users have led the AR segment with training and field service applications.”