Reality check for VR: Omdia forecasts decline as Apple's entry fails to galvanize market
Virtual Reality (VR) market faces significant challenges as headset sales dropped 10% to 6.9 million units in 2024 from 7.7 million in 2023, according to Omdia's latest research.
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Rhea-AI Summary
Virtual Reality (VR) market faces significant challenges as headset sales dropped 10% to 6.9 million units in 2024 from 7.7 million in 2023, according to Omdia's latest research. The number of active VR headsets declined 8% to 21.9 million, with Apple Vision Pro's launch failing to revitalize the market and Meta's Quest 3S showing underwhelming sales.
VR content spending reached $904 million in 2024, projected to grow to $1.3bn by 2029, significantly lower compared to console gaming's $37.4 billion. The market outlook remains challenging, with developer interest and declining consumer engagement. Manufacturers are now shifting focus towards lightweight AR glasses with AI integration, hoping to normalize face-based spatial computing for future mass-market VR adoption.
Positive
- VR content spending expected to grow from $904M in 2024 to $1.3B by 2029
Negative
- Headset sales declined 10% YoY to 6.9M units in 2024
- Active VR headsets decreased 8% to 21.9M in 2024
- Apple Vision Pro failed to revitalize market interest
- Meta Quest 3S shows disappointing early sales data
- developer interest and declining consumer engagement
- VR content revenue significantly trails gaming console content ($904M vs $37.4B in 2024)
Details
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"The Apple Vision Pro's highly anticipated debut failed to spark the resurgence that the VR industry hoped for, with momentum fading and significant developer interest still lacking ten months on," commented George Jijiashvili, Senior Principal Analyst at Omdia. "Meanwhile, early sales data for the new entry-level Quest 3S reflects no significant boost to Meta's headset sales, reinforcing Omdia's view that VR will remain a niche market as long as it remains in its current form."
The number of VR headsets in active use fell by
Omdia's latest Consumer VR Headset and Content Revenue Forecast shows
Dwindling consumer engagement since the pandemic period, limited compelling new content, and developers questioning the ROI of VR projects paint a troubling outlook. With device manufacturers hesitant to commit significant investments, the current developments suggest a pivot away from VR and passthrough mixed reality in current headsets. "The focus is shifting to lightweight AR glasses, offering all-day, 'anywhere' access to multimodal AI. Manufacturers hope that this approach will help normalize face-based spatial computing, which will ultimately spur mass-market VR adoption," added Jijiashvili.
ABOUT OMDIA
Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.
Contact
Fasiha Khan: fasiha.khan@omdia.com
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SOURCE Omdia
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