TrendForce’s latest report estimates that global shipments of VR and MR headsets are expected to reach approximately 9.6 million units in 2024, representing a YoY increase of 8.8%. This year’s shipment performance highlights three key industry trends that are shaping the global VR and MR ecosystem: The dominance of low-cost devices, the shift from entertainment accessories to productivity tools, and OLEDoS emerging as the preferred display technology for high-end near-eye devices. These three trends are expected to continue influencing the global VR and MR market over the next several years.

Meta retains its position as the global leader in VR and MR device shipments with a 73% market share in 2024. The primary growth driver is the affordable Quest 3S—priced at just US$299—contributing to an 11% YoY increase in shipments. The company, facing a market constrained by limited new applications for VR and MR, has adopted a strategy that prioritizes affordable pricing to capture consumer interest. To this end, Meta has opted to release the Quest 3S early while also suspending plans for the high-end Quest Pro 2, signaling a shift in focus toward budget-friendly devices.

Sony’s PS VR2 secured the second-largest market share at 9% for 2024. Despite Sony’s efforts to integrate the PS VR2 with PC platforms using adapters to broaden the content ecosystem, limited functionality and application support have hindered its performance. Consequently, annual shipments declined by 25% YoY.

The Apple Vision Pro debuted on the market in 2024, quickly capturing a 5% market and making it the third-largest player in the VR/MR market. However, sales figures fell short of previous Apple product launches, largely due to its high price and limited application resources.

TrendForce notes that Vision Pro’s entry, along with Meta’s decision to accelerate the launch of its budget-friendly model and suspend its high-end model, demonstrates that affordable pricing remains the key factor driving consumer adoption. Price sensitivity among consumers has solidified LCD technology as the dominant display technology for VR/MR devices, with a market share exceeding 80%.

The launch of the Apple Vision Pro has shifted VR and MR devices beyond their traditional focus on consumer-oriented entertainment toward a broader role as multi-functional productivity tools. Vision Pro is redefining the capabilities and use cases of VR/MR devices—from document editing and virtual meetings to advanced applications in healthcare and education. This paradigm shift is expected to encourage other brands to reevaluate the functional attributes of their own VR/MR devices, expanding their role in both consumer and enterprise markets.

Despite the underwhelming sales performance of high-priced devices, the Vision Pro has succeeded in establishing a new standard for user expectations of VR/MR. It is also the first device in the industry to feature OLEDoS display technology, setting a new benchmark for product specifications and visual quality in the sector.

Apple’s extensive experience in hardware design and its existing expertise in smartphones, tablets, and laptops positions the company as a key driver of the adoption and diversification of VR and MR applications. Looking ahead, Apple is expected to launch its next generation of VR/MR devices as early as 2026, with a strategy to introduce two distinct models targeting both high-end and mainstream segments.

The high-end model is expected to continue using OLEDoS display technology with a resolution exceeding 3,000 PPI, ensuring an exceptional visual experience. Apple will likely consider sourcing components from suppliers beyond Sony to reduce production costs, potentially including Chinese suppliers currently expanding production capacity.

For its mainstream model, Apple is expected to focus on affordability and cost-efficiency to target price-sensitive consumers. Possible display options for this model include glass-based OLED displays and LCDs with LTPO backplane technology, both of which offer a balance between performance and cost. This dual-track strategy will allow Apple to simultaneously target premium and mainstream market segments, reinforcing its influence in the global VR and MR market.

TrendForce 2024 Near-Eye Display Market Trend and Technology Analysis
Release Date:2024 / 07 / 31
Languages:Traditional Chinese / English
Format:PDF
Page:164