In 2023, XR grew by 5.3% in terms of unit shipments, reaching a total of 17.9m shipments across all the XR categories. By 2028, Futuresource expects XR to ship 60.2m units, with 71% coming from the AIO category. This is despite only a limited amount of content being available, which is acting to deter the average consumer from investing in VR hardware.
As many big tech players launch new products, the XR market continues to show promise. Meta Quest 3 was a significant upgrade to its predecessors and has shown the potential of an AIO headset at a low price point. The release of Apple Vision Pro and the collaboration between Samsung and Google will raise awareness around XR which will be translated to shipments in the upcoming years, potentially even beyond the forecast period.
While gaming maintains a dominant 75% share in terms of applications, Entertainment is growing steadily as the second biggest use case. Various other applications, including B2B, also amount to a combined 10% of the total market.