Press release

Augmented Reality and Virtual Reality Headsets Poised for Significant Growth, According to IDC

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Worldwide shipments of augmented reality and virtual reality (AR/VR)
headsets are forecast to reach 8.9 million units in 2019, up 54.1% from
the prior year according to the International Data Corporation (IDC)
Worldwide
Quarterly Augmented and Virtual Reality Headset Tracker
. Strong
growth is expected to continue as global shipments climb to 68.6 million
in 2023 with a compound annual growth rate (CAGR) of 66.7% over the
2019-2023 forecast period.

IDC forecasts shipments for virtual reality headsets to reach 36.7
million units in 2023 with a five-year CAGR of 46.7%. Among the various
products and form factors, Standalone headsets will account for 59% of
all VR headsets shipped in 2023, followed by Tethered Head-Mounted
Displays (HMDs) with 37.4% share of shipments and Screenless Viewers
accounting for the remainder. In the AR headset market, total shipments
are expected to reach 31.9 million units in 2023 with a 140.9% CAGR.
Once again, Standalone headsets will lead the market with 17.6 million
units shipped and 55.3% share in 2023 followed by Tethered HMDs with
44.3% share and Screenless Viewers capturing less than 1%.

“New headsets from brands such as Oculus, HTC, Microsoft, and others
will help fuel the growth in 2019 and beyond,” said Jitesh
Ubrani
research manager for IDC’s Mobile
Device Trackers
. “However, it’s not just new products from headset
makers that will drive the AR/VR market forward. Qualcomm’s latest
silicon is also expected to play a major role in enabling hardware
partners and providing network connectivity for content creators.”

When it comes to the overall AR/VR headset market, roughly two-thirds of
all headsets will be shipped into the commercial segment in 2023 as many
AR headsets and a significant portion of VR headsets will cater to this
audience. The types of industries and use cases for these deployments
will vary dramatically, but key vertical use cases include everything
from training and services to retail and design.

“Some of the early movers in the VR space have wisely moved to embrace
commercial use cases for the technology as they wait for more
consumer-centric experiences beyond gaming and video to materialize,”
said Tom
Mainelli
, group vice president, Devices & AR/VR at IDC. “The
Augmented Reality side of the headset business has been largely
enterprise-focused from the start, with a few notable exceptions, and we
expect that trend to continue for the foreseeable future as most
consumers in the near term will experience AR through their smartphone
or tablet.”

About IDC Trackers
IDC
Tracker
products provide accurate and timely market size, vendor
share, and forecasts for hundreds of technology markets from more than
100 countries around the globe. Using proprietary tools and research
processes, IDC’s Trackers are updated on a semiannual, quarterly, and
monthly basis. Tracker results are delivered to clients in user-friendly
excel deliverables and on-line query tools.

For more information about IDC’s Worldwide Quarterly Mobile Phone
Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

About IDC
International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC’s analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of International Data Group (IDG),
the world’s leading media, data and marketing services company that
activates and engages the most influential technology buyers. To learn
more about IDC, please visit www.idc.com.
Follow IDC on Twitter at @IDC
and LinkedIn.

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