Wednesday March 8th, 2023
Reality Report by Jamie Gant – 2min read

XR Market Declines 21%(2022)

Exploring the Latest trends in the XR market. What does the IDC report reveal about the future and the Pains/Gains in the market?

The world of extended reality (XR) has seen explosive growth in recent years, with new technologies and innovations emerging all the time. However, according to a recent report by IDC, the XR market declined by 21% in 2022, with significant changes in the leading players in the VR and AR segments.

NReal has tremendous success, while Meta leads VR.

As GSM Arena reports, the IDC report indicates that the XR market generated $6.7 billion in revenue in 2022, down from $8.5 billion in 2021. This decline is largely attributed to the impact of the COVID-19 pandemic on consumer spending and production capabilities.

But despite the decline in overall revenue, there were some interesting shifts in the leading players in the XR market. In the VR segment, Meta (formerly Facebook Reality Labs) emerged as the leader, with a 28.5% market share. This is largely due to the popularity of the Meta Quest 2, which has been a hit among consumers.

Nreal Air AR Glasses

Welcome to your first R Experience powered by proprietary optic and computer vision technology.

Quest 2

Selling over 20 million devices, the Quest 2 has become the staple VR headset for everyday users and new VR explorers.

Meanwhile, in the AR segment, Nreal emerged as the leader, with a 20.5% market share. This is a significant shift from the previous year, when HoloLens was the dominant player in the market. Nreal’s success is largely attributed to the company’s focus on creating affordable and accessible AR devices, which has resonated with consumers.

While the decline in overall revenue is certainly concerning for the XR market, the emergence of new players like Meta and Nreal is an indication that there is still plenty of room for growth and innovation in the space. As technologies like 5G and edge computing become more widely available, it’s likely that the XR market will continue to evolve and expand in exciting new ways.

The IDC report highlights the challenges faced by the XR market in 2022, but also points to the emergence of new players like Meta and Nreal. As the market continues to evolve, it will be interesting to see how these companies and others shape the future of XR and create new opportunities for consumers and businesses alike.