The Shift from VR Headsets to AR Glasses
VR headsets are no longer the focus, and AR glasses are taking their place. According to research by analysis firm Counterpoint, global VR shipments have been declining throughout 2024, despite the availability of affordable headsets like the Meta Quest 3s. In fact, VR sales numbers are not expected to improve anytime soon. The next step for major tech companies is to develop glasses with or without augmented reality capabilities, and they need to convince consumers that these thin, AI-filled glasses are superior to bulky headsets.
Decline of VR Headsets
The number of VR headsets shipped globally decreased by 12% year-over-year, with a 5% decline in the last quarter of 2024. This decline occurred despite Meta’s efforts to promote its $300 Meta Quest 3s, which actually helped the company gain a larger market share. Sony managed to maintain its 9% market share, likely due to its PlayStation VR2, which received a boost from its integration with PCVR and holiday discounts.
[Image: Counterpoint Research Graph – VR Market Share]The Rise of AR Glasses
The luster is fading from VR headsets, and not just the affordable ones. Apple’s Vision Pro, for example, saw a decline in sales in the last few months of 2024, with shipments falling by 43% in the quarter. Counterpoint predicts that the VR market will not gain much ground in the next two years due to a lack of content and user complaints about discomfort. The firm believes that the AR glasses market, on the other hand, will grow 30% through 2026.
Meta’s Focus on AR Glasses
Meta is shifting its focus to AR glasses, with the unexpected success of the Meta Ray-Ban glasses. The company plans to release "half a dozen" new AR glasses models in 2025, with the goal of selling "billions" of AI-enabled AR glasses. Apple is also working on its long-rumored smart spectacles project, although it may take a few years to materialize.
Competition in the AR Market
Other big tech players, such as Samsung and Google, are developing their own AR headsets, including Project Moohan, which seems to have similar capabilities to the Apple Vision Pro. The AR market is becoming increasingly competitive, with many companies vying for a share.
[Image: Meta Ray-Ban Glasses]The Future of AR Glasses
While the current AR glasses on the market are not yet perfect, with some lacking a solid use case and others having issues with comfortable design, there is potential for innovation in 2025. Companies like Google, Meta, and Apple may introduce new products that address these issues. The closest example of a promising AR glasses product is Meta’s Orion, a pair of true AR glasses. However, the challenge of fitting a powerful computer into a small package remains a significant hurdle.
Conclusion
The shift from VR headsets to AR glasses is underway, with major tech companies investing in the development of augmented reality-capable wearables. While there are still challenges to overcome, the potential for innovation and growth in the AR market is significant. As companies like Meta, Apple, and Google continue to work on improving their AR glasses products, we can expect to see more advanced and user-friendly devices in the future.
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