Meta’s dominance in the VR market will be challenged in the coming years, according to IDC

NEEDHAM, Massachusetts, June 30, 2022 – According to new data from the International Data Corporation (IDCGlobal Quarterly Augmented and Virtual Reality Headset Tracker† Sustained demand and dwindling supply propelled the category forward, although it’s worth noting that 1Q21 was plagued by supply issues and thus provided a favorable comparison.

Meta has increased its share and conquered 90% of the market as the Quest 2 continues to be immensely popular and Meta continues to offer more exclusive content while subsidizing hardware. After Meta, Pico from ByteDance followed with a share of 4.5%. Although Pico operated largely within the borders of China, it has a presence in many global markets, although it has mainly been in the commercial segment. Recent expansions to many European countries and a growing library of consumer-friendly content should help the company attract a wider audience in the coming quarters. DPVR, HTC and iQIYI rounded out the top 5 companies with a combined share of less than 4%.

“Meta continues to invest in the development of the metaverse, but the strategy of promoting cheap hardware at the expense of profitability is not sustainable in the long run,” he says. Jitesh Ubraniresearch manager for IDC Mobility and Consumer Device Trackers† “The good news is that Meta’s upcoming productivity-focused headset will serve as the entry point for the company’s pivot toward revenue-generating hardware and also help drive up end-user prices across the industry as average retail prices fall. up and the technology improves significantly.”

VR shipments are expected to grow further in 2022 as full-year volumes are expected to reach 13.9 million units, an increase of 26.6%. However, 2023 will be a pivotal year for the VR industry (and by extension augmented reality), as the next generation of headsets from Meta, Pico and Sony are expected to launch along with a headset from Apple expected to be a mixed reality headset. experience.

“All eyes will be on Apple as it launches its first headset next year, and while it’s tempting to imagine the company shipping high volumes, keep in mind that this is the first headset to be primarily a small audience of early adopters will appeal to Apple fans,” noted: Ramon Llamas, director of research on IDC’s Augmented and Virtual Reality team. “Further iterations are likely to show an evolution that will grow by leaps and bounds. In the meantime, companies like Meta and Sony already have a strong installed base and pent-up demand that they can tap into. Overall, this is a strong driver to to push the market forward.”

About IDC trackers

IDC tracker products provide accurate and timely market size, supplier share and forecasts for hundreds of technology markets from more than 100 countries around the world. Using proprietary tools and research processes, IDC’s Trackers are updated semi-annually, quarterly, and monthly. Tracker results are delivered to customers in easy-to-use Excel products and online search tools.

For more information on IDC’s Worldwide Quarterly Wearable Device Tracker, contact Kathy Nagamine at 650-350-6423 or [email protected]

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About IDC

International Data Corporation (IDC) is the leading global provider of market intelligence, advisory services and events for the information technology, telecommunications and consumer technology markets. With more than 1,300 analysts worldwide, IDC provides global, regional and local expertise in technology, IT benchmarking and sourcing, and industry opportunities and trends in more than 110 countries. IDC’s analysis and insight helps IT professionals, business leaders and the investment community make evidence-based technology decisions and achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world’s leading technical media, data and marketing company. For more information about IDC, visit: www.idc.com† Follow IDC on Twitter at @IDC and LinkedIn† Subscribe to the IDC blog for industry news and insights.

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