The State of the VR/MR Headset Industry in 2024: Insights from TrendForce
According to a recent analysis by the market research firm TrendForce, the virtual reality (VR) and mixed reality (MR) headset market is witnessing significant dynamics, with Meta continuing to dominate the sector. In 2024, Meta has successfully captured a remarkable 73% market share within the VR/MR headset landscape.
Meta’s Affordable Strategy Fuels Growth
Much of Meta’s success can be attributed to its strategic focus on offering more affordable headsets rather than solely premium models. The company opted to postpone the release of the Quest Pro 2 and introduced the Quest 3S at a price point of $299. This budget headset was pivotal in driving an 11% increase in year-over-year shipments.
Competitive Landscape
Following Meta’s lead, Sony’s PS VR2 secured the second position in the market, boasting a 9% share. The remaining 13% is distributed among various other brands. Overall, the global shipment of VR/MR headsets is projected to reach 9.6 million units in 2024, reflecting an 8.8% year-over-year growth.
Key Trends Reshaping the VR/MR Ecosystem
Four pivotal trends are driving the evolution of the global VR and MR ecosystem:
- Rise of Low-Cost Headsets: Affordable pricing is key to market access.
- Focus on Multi-Functionality: Transitioning from merely entertainment devices to essential productivity tools.
- OLEDoS Technology Adoption: OLED on Silicon (OLEDoS) is emerging as the leading display technology in high-end headsets.
Apple Vision Pro: A Game Changer?
Leading the charge in display technology is the Apple Vision Pro, which is the first headset to utilize OLEDoS technology. Priced at a premium of $3,499, it has managed to capture a 5% market share in 2024. This high-end device offers features that far exceed those of its competitors, despite its price being more than ten times that of the Quest 3S.
In previous analyses, it was highlighted that the Vision Pro is intricately designed with substantial Lightning ports. Its elevated cost has positioned it as a trendsetter, pushing VR/MR technology from traditional consumer entertainment to a more expansive role as versatile productivity tools.
Expanding Applications and Paradigm Shifts
Beyond immersive experiences, the Vision Pro facilitates a variety of advanced applications, including document editing, virtual conferencing, healthcare solutions, and educational tools. This shift is expected to prompt other manufacturers to reconsider the functional capabilities of their VR/MR devices, thus broadening their reach into consumer and enterprise markets alike. As noted in the report, this transformation is crucial for the sector’s growth.
Future Prospects for Apple
Looking ahead, Apple is projected to introduce next-generation VR/MR devices as early as 2026, countering recent reports from analyst Ming-Chi Kuo. Their strategy will target both premium and mainstream markets, focusing on affordable headsets for budget-conscious consumers.
Interestingly, only ten new applications were added to the Vision Pro App Store in September 2023, raising concerns about developer interest amid the headset’s steep pricing.
Technological Innovations and Cost Management
TrendForce anticipates that Apple will maintain its commitment to OLEDoS technology, with future devices boasting resolutions surpassing 3000ppi. Moreover, the company may explore partnerships with Chinese suppliers to procure more economical components, thereby keeping production costs manageable.
Simultaneously, Apple is expected to prioritize cost efficiency for its mainstream model by potentially opting for alternative display technologies, including glass-based OLED and LCDs with LTPO backplane capabilities.
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