Virtual Reality & Augmented Reality Headsets 2023-2033: Technologies, Players, and Markets

VR (Virtual Reality) replaces the real environment with the virtual whereas AR (Augmented Reality) overlays content on top of the real world. MR (Mixed Reality) - is when capable AR devices blur the line between the real and digital worlds, with overlaid virtual content interacting with real objects. Collectively, these concepts are referred to as XR (eXtended Reality). The XR headset industry is forecast to grow at a CAGR of 13% between 2023 and 2033 but how will developments in XR device hardware and their use-cases support this?

 

 

VR (Virtual Reality) replaces the real environment with the virtual whereas AR (Augmented Reality) overlays content on top of the real world. MR (Mixed Reality) - is when capable AR devices blur the line between the real and digital worlds, with overlaid virtual content interacting with real objects. Collectively, these concepts are referred to as XR (eXtended Reality). The XR headset industry is forecast to grow at a CAGR of 13% between 2023 and 2033 but how will developments in XR device hardware and their use-cases support this?

 

 

 

VR has found its place as an enabler of telepresence and as a tool for design or visualization, but home gaming has been the key driver of the VR headset industry surpassing the multibillion-dollar mark. However, VR started life as a training tool and the same low-cost standalone devices that hastened adoption for gaming are finding significant use in industry to this end. In October 2021, Accenture ordered 60,000 Meta Quest 2 headsets to help ease onboarding of new recruits, marking a wider trend of employers looking for new ways to promote engagement with remote workforces.

 

This report discusses the ways emerging use-cases are affecting the design and product targeting of VR headsets. A key question addressed is how VR headset manufacturers are finding new ways to compete in the consumer space beyond the Meta-dominated gaming market.

 

 

MR-capable AR headsets are hoped to one day fulfil the role the smartphone currently plays in our lives, yet most people today have only experienced AR through their smartphones. Attempts to crack the consumer AR headset market have proved extremely challenging. AR headsets have made a wider impact in professional usage with clear use-cases such as guiding workers around a warehouse, simplifying complex maintenance tasks, aiding complex surgery, and more. However, when targeting the general public, headset manufacturers must contend with social acceptability and privacy concerns - not to mention pricing their headsets to sell and demonstrating their value in daily life.

 

How might AR headsets find niches in the consumer space in the short-term? How will AR applications transition from the smartphone to headsets? How will AR devices compete with more established technologies, including VR headsets, in the longer term? Addressing these questions is a major focus of the report.

 

 

Many XR devices are now standalone, fully contained computing systems with Qualcomm now offering a line of specialist XR SoCs (system-on-chips) to support this. However, more conventional computing systems remain ready for XR headsets to take advantage of. As the XR industry remains in a transitional time, an emerging category of XR devices shares computing load between onboard chips and external devices. This uses modern low-latency communication standards, particularly WiFi 6E, to achieve this wirelessly. As XR devices supplant these devices, a move towards mobile edge computing via 5G and its replacements is likely, with some XR SoCs already containing 5G antennas to support this. The evolution of XR devices from PC peripherals to fully-fledged computing devices is examined in IDTechEx's report.

 

Displays and optics define much of the user experience of XR devices as well as setting many variables in their design. The report outlines the industry landscape for important components. It also outlines how key challenges holding back the XR industry - particularly the low-efficiency optics and displays used in AR devices - impact current devices and will be tackled in the future.

 

To blur the line between the real and the digital as strongly as possible, XR headsets must take in a huge range of data about the environment and their users. This report covers the range of sensors that are required to perform such diverse tasks as mapping out the user's location with cameras and track where the user is looking. Haptics add the dimension of touch to XR, deepening immersion and making interactions more natural. The integration of haptics into XR peripherals is detailed, and the ways in which haptics and sensing combine to facilitate new modes of interaction with created realities are outlined.

 

 

From IDTechEx's database of technical and pricing data for the majority of XR headsets released since 2010, the changing status of the industry is quantitively examined with conclusions indicating the next decade of evolution. How have headsets competed with one another? What gaps could new entrants exploit? What can we expect from the next generation of XR headsets? The answers lie in examining the data in the context of IDTechEx's wider survey of the industry.

This report provides the following information:

 

Technology trends & player analysis:

 

Discussion of important componentry for AR/MR/VR devices and accessories:

 

Market Forecasts & Analysis:

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