The decline in global shipments for AR and VR headsets continued during Q2 2024, figures by IDC showed, with the research house expecting the drop to “carry forward” this year.

AR and VR device shipments dropped 28.1 per cent year-over-year to 1.1 million units in Q2, a decline that is forecast to continue as full-year shipments are projected to fall by 1.5 per cent.

The company blamed “weak economy, upward momentum of average selling prices and excess inventory” in Q1, but added many of these factors were “alleviated” in Q2, other than high price points.

IDC however projected a somewhat brighter outlook for 2025, with the market expected to “soar to 41.4 per cent growth” thanks to the availability of affordable models and launch of more products.

Jitesh Ubrani, research manager, Worldwide Mobile Device Trackers at IDC noted: “In recent quarters, Mixed Reality (MR) headsets took a leap forward in fidelity, first with the launch of the Quest 3 and later the Vision Pro.”

“However, the lack of affordable options has meant that few consumers have experienced this new technology, but that will change as Meta is expected to launch a more affordable version which will help the market return to growth in the coming year”, expanded Ubrani.

Meta Platforms led the market with 60.5 per cent share in Q2, followed by Sony, Apple, ByteDance and Xreal Technology.

XR wearables are also predicted to grow next year thanks to integration of more AI features and “consumer-friendly designs”, as well as the expected release of next-generation products from new start-ups and incumbent players.

Existing “AR champions”, such as HoloLens, are also expected to unveil more affordable MR devices in the future.

IDC concluded it forecast the AR and VR devices industry to grow from 6.7 million units in 2024 to 22.9 million in 2028.