XR market dropped 21% in 2022, Meta leads VR

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2022 was hard for AR/VR. Global shipments dropped to 8.8 million units for the year. This is down 20.9% compared to 2021, says analytics firm IDC.

The analysts say the drop was unsurprising. This is a young market and global events have massive effects on it.

In 2021, the pandemic confined people at home with disposable cash. It was a big opportunity for VR and AR headset makers.

The increasing prices of electronics parts and logistics was not at full force yet. Meta Quest 2 was at $300. It rose to $400 last year for the 128GB model. The 256GB one was $500 but dropped to $430 a few days ago.

The Meta Quest 2

A big divide between VR and AR headsets exists. Mixed Reality headsets combine both AR and VR. These so-called Mixed Reality XR headsets include the Meta Quest Pro and the HTC Vive XR Elite. They cost $1,000 and $1,100, respectively. They cost more than the AR-only and VR-only devices.

Meta has a whopping 80% of the AR-VR market. TikTok owner ByteDance follows at a far second with 10% after it bought Pico. The other Top 5 companies that follow are DPVR, HTC and iQIYI.

Sony launched a new PSVR 2 headset in February this year. It claims no shortage of supplies. We’ll see how many gamers it can capture with its well-known brandname.

The market AR-only glasses is different. Nreal dominates the list with nearly 100K shipments last year.
Here are the Top 5 of AR glasses by shipment:

  1. Nreal – 98,000
  2. Microsoft – 35,000
  3. Rokid – 30,000
  4. TCL – close to 30,000
  5. Epson – 13,000

“While Meta and ByteDance duke it out in the VR segment, Nreal has been able to slowly grow its presence by appealing to mobile gamers,” said Jitesh Ubrani, research manager, Mobility and Consumer Device Trackers at IDC.

“Though it’s still early days for AR and VR, Meta has been able to build a moat for itself through its various first- and third-party content. This is where other players such as Sony and potentially Apple can provide meaningful competition though in the long run it’ll put pressure on others including ByteDance and Nreal.”

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Author: Francis Rey

Francis is a voracious reader and prolific writer. He has been writing about social media and technology for more than 10 years. During off hours, he relishes moments with his wife and daughter.

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