VR and AR headsets demand set to surge on AI, lower costs, IDC says


FILE PHOTO: Meta CEO Mark Zuckerberg delivers a speech, as a person wearing a VR headset appears on screen, during the Meta Connect event at the company's headquarters in Menlo Park, California, U.S., September 27, 2023. REUTERS/Carlos Barria/File Photo

(Reuters) - Global shipments for augmented and virtual reality (AR/VR) headsets are expected to grow 41.4% in 2025, powered by more affordable devices and addition of artificial intelligence features, research firm IDC said on Monday.

WHY IT'S IMPORTANT

Worldwide shipments of AR and VR headsets fell 28.1% year-over-year to 1.1 million units in the second quarter, due to elevated prices and a weak economy prompting customers to rein in expenses, IDC said.

The market is expected to expand to 22.9 million in 2028 from an estimated 6.7 million units this year, IDC said.

KEY QUOTES

"We're seeing a slew of new startups and next generation products from established brands targeting the 'smart glasses' space," said Jitesh Ubrani, research manager, Worldwide Mobile Device Trackers at IDC.

"What's different this time around is the inclusion of AI along with thinner and lighter designs catering to consumers."

CONTEXT

In October last year, Meta Platforms launched its VR headsets called 'smart glasses' made with EssilorLuxottica's Ray-Ban. The company said in July the latest version was a bigger hit than expected.

Meta is expected to launch a cheaper version of its Quest 3, called the Quest 3S, according to Bloomberg News reports.

(Reporting by Harshita Mary Varghese in Bengaluru)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Tech News

US natgas producers chase AI-driven surge in power demand to weather low prices
Snowflake shares surge on rosy forecast, AI deal with Anthropic
Digital banks lead profitability gains among Brazilian lenders, says central bank
PayPal fixes outage that affected thousands worldwide
X's former top policy chief takes job with Elon Musk rival, Sam Altman
Alibaba integrates e-commerce platforms into a single business unit
US watchdog issues final rule to supervise Big Tech payments, digital wallets
Nvidia to build AI school in Indonesia, VP says
A Google PC running Android could be in the works
Factbox-US prosecutors demand Google divest Chrome to end search monopoly

Others Also Read