TrendForce's latest report estimates that global shipments of VR and MR headsets are expected to reach approximately 9.6 million units in 2024, up 8.8% year-on-year. This year's shipment performance highlights three key industry trends shaping the global VR and MR ecosystem: the dominance of low-cost devices, the shift from entertainment accessories to productivity tools, and OLEDoS becoming the display technology of choice for high-end near- and MR devices developed. Eye devices. These three trends are expected to continue to influence the global VR and MR market in the next few years.
Meta maintains its position as the global leader in VR and MR device shipments with a 73% market share in 2024. The main growth driver is the affordable Quest 3S, priced at just $299, resulting in an 11% increase in shipments % compared to the previous year. Facing a market constrained by limited new applications for VR and MR, the company has adopted a strategy that emphasizes affordable pricing to capture consumer interest. To that end, Meta has decided to release the Quest 3S early while also suspending plans for the high-end Quest Pro 2, signaling a shift in focus towards budget-friendly devices.
Sony's PS VR2 secured the second largest market share with 9% for 2024. Despite Sony's efforts to integrate the PS VR2 into PC platforms using adapters to expand the content ecosystem, limited functionality and application support have hindered its performance. As a result, annual shipments fell 25% year-over-year.
The Apple Vision Pro launched in 2024 and quickly captured 5% market share, making it the third-largest player in the VR/MR market. However, sales fell short of previous Apple product launches, largely due to its high price and limited application resources.
TrendForce notes that Vision Pro's entry, coupled with Meta's decision to accelerate the launch of its budget-friendly model and discontinue its high-end model, shows that affordable pricing remains the key factor driving consumer adoption. Consumer price sensitivity has solidified LCD technology as the dominant display technology for VR/MR devices with over 80% market share.
The launch of the Apple Vision Pro has shifted VR and MR devices from their traditional focus on consumer-focused entertainment to a broader role as multifunctional productivity tools. Vision Pro redefines the capabilities and use cases of VR/MR devices – from document editing and virtual meetings to advanced healthcare and education applications. This paradigm shift is expected to encourage other brands to re-evaluate the functional characteristics of their own VR/MR devices, thereby expanding their role in both the consumer and enterprise markets.
Despite the disappointing sales performance of high-priced devices, the Vision Pro has managed to establish a new standard for user expectations for VR/MR. It is also the industry's first device to feature OLEDoS display technology, setting a new benchmark for product specifications and visual quality in the industry.
Apple's extensive experience in hardware design and its existing expertise in smartphones, tablets and laptops make the company a key driver for the introduction and diversification of VR and MR applications. Looking ahead, Apple is expected to launch its next generation of VR/MR devices as early as 2026, with the strategy of introducing two different models targeting both the high-end and mainstream segments.
The high-end model is expected to continue to use OLEDoS display technology with a resolution of more than 3,000 PPI, ensuring an exceptional visual experience. Apple will likely consider sourcing components from suppliers outside of Sony to reduce production costs, including possibly from Chinese suppliers who are currently expanding their production capacity.
In its mainstream model, Apple is expected to focus on affordability and cost-effectiveness to appeal to price-sensitive consumers. Possible display options for this model include glass-based OLED displays and LCDs with LTPO backplane technology, both of which offer a balance between performance and cost. This two-pronged strategy will allow Apple to simultaneously target premium and mainstream market segments, strengthening its influence in the global VR and MR market.
TrendForce Roadshow CES – AI innovations and opportunities
Eric Chiou, Senior Research Vice President of TrendForce, will give a talk entitled “Future Vision: VR/MR Devices Driving Near-Eye Display Advancements” at the TrendForce Roadshow CES. The seminar will take place on January 8, 2025 at the Renaissance Las Vegas Hotel, USA. The event will also feature in-depth discussions on key industry topics including the memory industry, NAND market updates, foundry and AI servers. For more information, visit the event's official website. We look forward to welcoming you to CES 2025!
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