Global AR VR Headset Market Drops 23.5% in 2023, Meta Leads Amidst Rising Competition

The augmented reality and virtual reality (AR/VR) headsets market has achieved 130.4 percent growth during the fourth quarter of 2023 (4Q23), IDC said.
IDC report on AR and VR HeadsetsHowever, despite the buoyant fourth quarter, the overall shipments of AR/VR headsets for the full year of 2023 experienced a 23.5 percent decline compared to 2022 levels. This downturn was attributed to macroeconomic uncertainties dampening demand in the first half of the year, compounded by reliance on existing products in the market.

Jitesh Ubrani, research manager for Mobility and Consumer Device Trackers at IDC, highlighted Meta’s resurgence in market share, attributing it to sustained hardware subsidies and the successful launch of the Quest 3. Despite increasing competition from rivals like Pico, Sony, and Apple, Meta’s dominance is expected to persist due to its cost-effective, high-volume approach.

Ramon T. Llamas, research director of IDC’s Augmented and Virtual Reality program, observed that 2023 commenced with substantial year-over-year declines, echoing broader market trends. This challenging period facilitated advancements in mixed reality, artificial intelligence, and display technologies across the AR/VR ecosystem, laying a foundation for a more promising 2024.