Introduction to AR/VR Headsets
The world of augmented reality (AR) and virtual reality (VR) is rapidly expanding. In 2021, a record 11.2 million units of AR and VR headsets were shipped globally, based on data from International Data Corporation’s (IDC) worldwide quarterly AR/VR headset tracker. This significant growth is essentially attributed to the vacation season, where half of the annual volume was shipped within the fourth quarter.
Market Leaders and Trends
Meta’s strong Quest 2 volumes accounted for 78 percent of the combined AR/VR worldwide market, followed by DPVR and ByteDance’s Pico VR products. Meta’s success may be attributed to its inexpensive headset and its efforts to introduce non-gamers and businesses to the varied uses of AR and VR beyond gaming. The company’s tactic has benefited its growth, and it currently has no major competitors within the AR/VR industry.
Future Projections and Growth
The AR/VR headset shipments are expected to grow by 47 percent year-over-year in 2022, with double-digit growth into 2026. Global shipments are predicted to exceed 50 million units by 2026, with a compound annual growth rate exceeding 35 percent. The broader adoption of AR and VR by gamers, non-gamers, and the business sector is driving this growth. However, augmented reality headsets still represent a small fraction of the general AR/VR headset market, with most volumes coming from the business side of the business.
Augmented Reality and Marketing
AR is becoming an important tool for marketers, with ad revenues from AR marketing expected to achieve $2.86 billion in 2022 and $6.68 billion in 2025. Thirty-five percent of marketers were leveraging AR or VR of their strategies in 2021, and 42 percent of those planned to extend their investment in 2022. The overall AR/VR market is predicted to grow to $252.16 billion by 2028, with some predictions reaching as high as $571 billion by 2025.
The Metaverse and Emerging Use Cases
The metaverse, a brand new digital environment, is giving brands latest ways to interact customers through immersive experiences and shopping activations. People are steadily warming as much as the thought of shopping with AR, even though it hasn’t turn out to be mainstream yet. According to a survey, 13 percent of US adults had ever used AR or VR to buy, and 37 percent who hadn’t used AR or VR to buy before were no less than somewhat curious about doing so.
Conclusion
In conclusion, the AR/VR industry is experiencing rapid growth, driven by the increasing adoption of AR and VR headsets by gamers, non-gamers, and the business sector. Meta’s strong Quest 2 volumes and the broader adoption of AR and VR are contributing to this growth. As the industry continues to expand, marketers and businesses must keep an in depth eye on the space, particularly with the emergence of the metaverse and its potential to revolutionize the way in which we interact with brands and products. With the AR/VR market expected to achieve $252.16 billion by 2028, it’s an exciting time for the industry, and we will expect to see significant developments and innovations within the years to come back.
