Strategy Analytics predicts a strong recovery for the global AR/VR markets in 2021 after COVID-19 driven contraction in 2020. Key findings from the research group include:
- Total XR shipments (the combined VR Headset Forecast and Dedicated AR Headset Forecast) will increase 6 fold through 2025.
- XR hardware revenues will surpass $28B annually in 2025.
- Samsung and start-up Nreal and other vendors will commercialize lightweight, consumer friendly AR headsets to drive strong growth in from the mid and low tier once these smartphone tethered devices reach the market.
- At the lower end of the market, we anticipate 2021-22 seeing a slight comeback of smartphone-tethered VR headsets as a result of 5G launches by mobile operators.
- Although we have increased our overall forecast for VR headsets, we have decreased slightly our anticipated shipments of console-tethered VR as a result of Microsoft’s decision not to support VR in the next generation Xbox.
“We expect that the launch of smartphone-tethered AR headsets, such as those from Nreal and Samsung seen at CES at the start of the year to ramp up in late 2020/early 2021,” David MacQueen, director of the Virtual and Augmented Reality service at Strategy Analytics, said. “We have raised our longer term forecast for XR hardware as a result of new work and life patterns in the ‘new normal.’ Work at home, training, education, and collaboration will all benefit from AR/VR.”
