IDC expects 2021 VR and AR equipment shipments to grow by 517%

The market intelligence firm IDC has released a new report projecting substantial growth in the VR and AR markets. According to their "Global Quarterly Augmented Reality and Virtual Reality Helmet Tracker," shipments are expected to rise from 9.6 million units this year to 59.2 million by 2021. This forecast highlights a significant shift in consumer preferences and technological adoption within the industry. Currently, low-cost, screenless VR solutions—such as smartphone-based headsets—have dominated the market. However, these products are gradually losing ground as users increasingly favor more advanced options. The trend is moving toward wired and standalone VR/AR devices that offer better performance, immersive experiences, and greater functionality. According to the report, smartphone-based VR headsets will account for less than 15% of the total VR/AR market in 2021. In contrast, wired and stand-alone models are expected to capture the largest share. Jitesh Ubrani, a senior research analyst at IDC’s Mobile Device Tracker, noted that the VR market is still in its early stages but is undergoing a critical transformation. He explained that consumers are now more inclined to invest in high-quality VR systems, such as those paired with PCs or gaming consoles, which provide superior tracking and graphics, rather than settling for cheaper, phone-based alternatives. “This shift is a positive development for the broader VR ecosystem,” Ubrani added. “Higher-end devices are delivering a more engaging experience, which is attracting a more dedicated user base.” In addition to consumer growth, the commercial segment is also seeing rapid expansion. IDC predicts that VR headset shipments will jump from 1 million units in 2020 to 12.6 million by the end of 2021. Meanwhile, AR headset shipments are expected to grow even more sharply, reaching 15.6 million units by the end of the year. Ryan Reith, vice president of IDC’s global quarterly mobile device tracker program, emphasized the potential impact of AR on various industries. “We believe AR headsets will play a key role in transforming business models across many sectors,” he said. “Many workers have yet to benefit from technological advancements because they need to be physically present to perform their tasks. AR can bring these innovations directly to them, enhancing productivity and efficiency.” As the market continues to evolve, the focus is shifting from affordability to performance, signaling a maturing industry that is poised for long-term growth.

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