According to IDC's latest AR/VR headset market quarterly tracking report, China's AR/VR headset shipments in the first quarter of 2024 showed an overall downward trend, with specific shipments reaching 107,000 units (sales-in caliber), a decrease of 37.8% compared with the same period in 2023.
In the first quarter of 2024, the overall AR/ER (formerly AR) market shipped 52,000 units, of which 44,000 units were shipped for split glasses, a year-on-year increase of 150.4%; Integrated glasses shipped 8,000 units, a year-on-year increase of 70.7%. The overall VR/MR (formerly VR) market shipped 55,000 units, of which 7,000 split headsets were shipped, a year-on-year decrease of 83.3%; Integrated headsets shipped 49,000 units, down 55.8% year-on-year. Despite the downward trend in the overall market, the dynamics of the segments are different. AR headset shipments reached 8,000 units, an increase of 119.2% year-on-year, showing the strong growth potential of AR technology in specific fields. XR headset shipments also increased by 136.2% year-on-year to 44,000 units. However, shipments of MR and VR headsets fell by 52.7% and 72.6%, respectively, indicating that these two market segments are under pressure.
In the face of changes in the market, manufacturers are responding to the challenges through technological upgrades and market strategy adjustments. Split glasses dominate the AR/XR market, with shipments up 150.4% year-over-year, showing a preference for this product form. Manufacturers are also actively expanding offline channels and carrying out technical cooperation with new energy vehicles and other fields to promote the growth of shipments.
Figure: 2023Q1-2024Q1 shipments in China's AR/VR market
Expectations for new products and technologies are also growing. It is expected that with the entry of new products such as Apple Vision Pro, the development of the supply chain system will accelerate, and the competition between manufacturers will become more intense. Although this may not bring explosive growth, it is expected to promote the upgrading and growth of the entire MR market from the perspective of product software and hardware levels and shipments.
IDC China analysts believe that AR/VR manufacturers will slow down the pace of shipments in the first quarter of 2024, mainly to prepare for the release and shipment of products in the later stage. It is expected that with the accelerated upgrading of AI technology, the reduction of supply chain costs and the improvement of structure, the accelerated construction of channel systems and the entry of new manufacturers, China's AR/XR market will usher in greater technological breakthroughs, and the VR/MR market will also usher in warm growth
Despite the decline in shipments in China's AR/VR headset market in the first quarter of 2024, market participants remain optimistic about the future development prospects. With the continuous advancement of technology and the gradual maturity of the market, China's AR/VR market is expected to achieve more stable and sustainable growth in the next few years.
