The evolution of this technology from its experimental beginnings to today’s advanced mixed-reality experiences reflects a deeper shift in how people interact with digital information. While the consumer market has seen numerous attempts to popularize AR/VR technology—from Google Glass to PlayStation VR headsets—truly practical and attractive products have only emerged in recent years.
In this rapidly evolving environment, Meta has leveraged its research, development, and vast social media platform to establish itself as a dominant force in the market. However, the market continues to change, and competition is intensifying.
Meta as a Leader in the AR/VR Market
Meta has solidified its leadership in the AR/VR device sector through strategic planning and technological innovation. According to IDC's report, Meta achieved a 70.8% global market share in the third quarter of 2024. The success of its latest Quest 3 model is attributed to a broader range of content and well-executed marketing campaigns, such as those conducted during Prime Day.
The Reality Labs division, which oversees the development of Quest headsets and the Horizon software platform, has reported year-over-year revenue growth. The focus on mixed reality and the versatility of Quest 3 aligns with the needs of a market that increasingly prefers multifunctional devices.
Competition and Market Trends
Although Meta dominates, other companies are vying for market share. Sony, known for its PlayStation gaming console, ranks second with a 6.7% share. Its PSVR2 headset has gained traction, particularly among PC gamers.
Other notable players include Apple, ByteDance, and XREAL, though some of these companies may gradually exit the market. IDC researcher Jitesh Ubrani notes that the commitment of companies like Sony and ByteDance to producing headsets is weakening, as evidenced by declining shipments.
This situation could create opportunities for new entrants like XREAL and VITURE, which focus on hardware and software innovations to attract customers, particularly gamers. However, the market is becoming increasingly consolidated, with the top three companies now controlling over 90% of the total share. This reflects the growing challenges smaller players face in competing with industry giants.
The Future and Emerging Technologies
Another significant category in the market, following mixed-reality devices, will be augmented reality (AR) with simple heads-up displays or content mirroring. Over the next 18 months, competition in this area is expected to intensify, particularly with Google’s return to the market via the Android XR platform.
According to Jitesh Ubrani, AI-powered glasses hold immense potential. These technologies can offer new possibilities for both personal and professional use by combining AI capabilities with user-friendly information displays.
Despite the growing opportunities, the market faces challenges. IDC forecasts an 8.3% decline in AR/VR device shipments in 2023, totaling 8.1 million units. The higher prices of new devices may deter some consumers, potentially slowing broader adoption.
However, a strong recovery is expected in 2024, with headset shipments projected to grow by 46.4%. "With Google’s return to the market, competition between Apple and Meta will heat up, as neither company has yet established itself as the clear leader in the mass market," concludes Jitesh.
