Recent statistics from Counterpoint show that in the second quarter of 2023, shipments of XR (Augmented Reality and Virtual Reality) headsets worldwide decreased significantly by 49% YoY. In comparison to the second quarter of the prior year, this reduction was much more pronounced, pointing to a struggle in the market brought on by weak demand.
This fall was caused by a number of causes, including the slump in the world economy and rising pricing, which have made buyers less enthusiastic about XR headsets. The market consequently experienced a sharp decline in shipments during this time.
As seen in the Techloy graphic below, Meta, with its well-liked Meta Quest VR headsets, retained its position as the market leader in Q2 2023, taking in 50% of the market. This number, though, is down YoY from 66% in Q2 2022.
The escalating competition from other businesses, including Sony, Pico, and other new entrants in the XR headset market, is to blame for the fall in Meta’s market share. These rivals are slowly gaining footing and posing a threat to Meta’s market leadership.
In the second quarter of 2023, the entire XR headset market was badly impacted by the decline in the world economy and rising prices. Companies will need to innovate and provide engaging experiences to entice customers and fuel demand for XR headsets as the industry grows more competitive.
