Worldwide shipments of AR and VR headsets expected to grow 58% CAGR : IDC


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Dedicated Augmented Reality (AR) and Virtual Reality (VR) headsets collectively are expected to grow at a very strong pace from just under 10 million units in 2016 to just shy of 100 million units in 2021, with a 5-year CAGR of 57.7%, according to recent forecast data from the International Data Corporation, (IDC) Worldwide Quarterly Augmented and Virtual Reality Headset Tracker.

VR headsets have led much of the device volume to date. Within that category, screenless viewers (VR headsets powered by a smartphone), which are the cheapest available form factor, have been leading the charge. The second half of 2016 saw a ramp up in volume from three highly publicized market leading VR device products – the Sony PlayStation VR, the HTC Vive, and Facebook’s Oculus Rift.

IDC VR

Jitesh Ubrani senior research analyst for IDC Mobile Device Trackers.

The next six to 18 months will further stimulate the VR market as PC vendors, along with Microsoft, introduce tethered headsets and high-end standalone VR headsets also enter the market. With lower hardware requirements on the PC and lower prices on headsets, VR will be more accessible than ever before. And the introduction of additional motion tracking and hand tracking will help further blur the line between digital and physical reality.

The research firm states that AR devices have taken a backseat in comparison to VR devices as the former devices are harder to achieve. IDC believes VR headsets will continue to lead in terms of volume throughout the forecast, but maintains that AR in general will have a much bigger impact overall on the industry. Consumers are very likely to have their first AR experience via a mobile phone or tablet rather than a dedicated headset, and Apple’s recent introduction of ARKit further supports this. IDC believes the large opportunity for dedicated AR headsets exists in the commercial segment. A huge level of interest and investment is happening as we speak around vertical markets such as healthcare, manufacturing, field service workers, and designs.

IDC VR graph

Ryan Reith, program vice president with IDC’s Worldwide Quarterly Mobile Device Trackers said,

It is very clear to us that augmented reality is the larger of the two plays here when looking at AR and VR combined. Companies like Microsoft, Epson, Intel, Meta, ODG, and DAQRI are already providing devices that are being deployed in real-time commercial projects with significant ROI. We believe that many industrial jobs will fundamentally change because of AR in the next 5-years, and these are much more opportunistic markets for dedicated AR headsets than the consumer market. We expect commercial shipments to account for just over 80% of all AR headsets shipped in the next 5 years.


Author: Sneha Bokil

Sneha Bokil is a tech enthusiast and is currently using OnePlus 3T but she still treasures her Nokia N70 (M). You can follow her on Twitter @snehabokil and on Google+