IDC: Shipments of AR/VR headsets in China in the first half of the year were 233,000 units, a year-on-year decrease of 29.1%.

The latest "AR/VR Headset Market Quarterly Tracking Report" released by IDC shows that in the first half of 2024, China shipped 233,000 AR/VR headsets (sales-in), a year-on-year decrease of 29.1%. Among them, AR shipments were 20,000 units, a year-on-year increase of 101.7%; ER shipments were 102,000 units, a year-on-year increase of 75.4%; MR shipments were 66,000 units, a year-on-year decrease of 49.3%; and VR shipments were 45,000 units, a year-on-year decrease of 65.5%. The decline in the AR/VR market in the second quarter began to slow down, and IDC predicts that the overall market will usher in a turning point in the second half of 2024, with the decline expected to decrease to -7.1%. Insights into the AR/VR Market in the First Half of 2024 AR & ER Market In the first half of 2024, a total of 122,000 AR and ER headsets were shipped in the domestic market, a year-on-year increase of 79.2%. The overall manufacturer landscape remained stable in the first half of the year, with the market temporarily saturated with no revolutionary breakthroughs in product technology, resulting in slowed growth. The top four manufacturers held a market share of 92.1%. Additionally, in the first half of the year, 111,000 AR and ER headsets were shipped in the domestic consumer market, while the commercial market saw 11,000 units shipped. Many manufacturers released new terminal devices this year, such as Xreal's Beam Pro and Rokid's Rokid Station2, further promoting the growth of consumer-grade viewing glasses through enriched content applications and usage scenarios. VR & MR Market In the first half of 2024, a total of 111,000 VR and MR headsets were shipped in the domestic market, a year-on-year decrease of 57.3%. Leading manufacturers scaled back their shipments and continued to deplete inventory, leading to a certain increase in market share for mid-to-high-end headsets. The market share of products priced above $600 reached 18.8% in the first half of the year. At the end of the second quarter, Apple Vision Pro officially entered the domestic market. With Apple's influence, more headset products began to shift towards high-end offerings, and accelerated deployments in the high-end business sector. Apple's entry also spurred more manufacturers to join the market. Outlook for the AR/VR Market in 2024 According to the latest 2024Q2 version of IDC's "AR/VR Headset Market Quarterly Tracking Report Forecast" data, the total AR/VR shipments in China for the whole year of 2024 are expected to reach 602,000 units, a year-on-year decrease of 17.1% compared to 2023. The AR & ER market is expected to ship a total of 317,000 units, a year-on-year increase of 21.2%. Viewing glasses remain the mainstream products in the domestic market, with the emergence of the overseas brand Viture in the second half of the year expected to bring about changes in the ER glasses market. Additionally, the rise of AI glasses and the entry of mobile phone manufacturers into the market will propel the use of AR products equipped with optical screens and SLAM technology as the next stage of glasses upgrades. We can see that overseas VR industry leader Meta has also started to research and release AR product lines, indicating a continued integration of VR and AR technologies to form a more unified XR product ecosystem. The VR & MR market is expected to ship a total of 285,000 units, a year-on-year decrease of 38.6%. Since the second quarter, the VR large space projects have shown explosive growth driven by manufacturers, content providers, and policies, becoming the main point of shipment in the VR market. Currently, most domestic large space project content revolves around historical and exploratory themes, showing significant breakthroughs in both quantity and quality. With Apple's entry, large space projects have also seen the application of Vision Pro for outdoor MR space experiences. Additionally, in the MR field, more mobile phone manufacturers are expected to enter the market starting from the end of 2024, and will collectively launch their first products in 2025. IDC China analyst Ye Qingqing believes that there are positive signals for the Chinese AR/VR market in 2024. On one hand, the AR and ER market is still in a period of continuous growth, but due to high technological barriers for AR products leading to difficulties for manufacturers, and slower product innovations in the ER market, the overall market growth rate will gradually decline, stabilizing the market and waiting for breakthroughs in technology to drive explosive growth. On the other hand, the decline in the VR and MR market has narrowed, with VR manufacturers expanding their business in the B-end and introducing consumer-grade products priced higher than their costs in the C-end. Although the MR market currently lacks breakthroughs in volume, the entry of Vision Pro has accelerated the rapid development of the entire industry chain, including hardware and content applications. With the subsequent entry of new manufacturers and the launch of new products, breakthrough growth is expected in the coming years.