Apple will push the AR/VR headset market into the mainstream

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Based on S&P's analysis, Apple will spearhead the next mainstream push for the AR/VR market.
  • Apple will spearhead the next mainstream push for the AR/VR headset market.
  • AR/VR headset shipments are expected to grow at a compound annual growth rate of 22.1%.

Augmented reality and virtual reality (AR/VR) have been a hot topic for several years. The reality is that the big and transformative uses of AR and VR have always been niche. Many expect it will be a few more years before they become mainstream, but S&P Global Market Intelligence predicts. Apple at the forefront Activation of AR/VR headsets.

First of all, S&P Analysis estimates that there will be approximately 39.7 million AR and VR headsets installed in consumer and commercial environments by the end of 2022, down 1.2% from 34.2 million in 2021 as user churn more than offsets slowing sales. Did. The research firm also predicts that AR/VR headset shipments will grow significantly from 7.9 million units in 2022 to 21.4 million units in 2027, with a compound annual growth rate (CAGR) of 22.1%. I predict it will be

Neil Barber, Associate Research Analyst at S&P Global Market Intelligence, believes the AR/VR hardware sector has relatively low ceilings as an extension of the video game market after initial surges in 2016 and 2017. I’m here. “But there is hope for a wave of new headsets,” he said, adding that the focus is on other common computing tasks, such as video conferencing, web browsing and media playback, to tap into a broader market. ‘ he added.

“Therefore, the installed base growth base is expected to accelerate in 2023, exceeding forecasts and increasing the installed base to 71.4 million,” he said, noting that the core value proposition is AR/VR A headset that combines the portability of a smartphone with the expansive workspace of a multi-monitor setup. He noticed that such marketing messages were advertised. Endorsed by Apple“We have a solid track record in the emerging hardware space.”

The growth of the installed base of AR/VR headsets is expected to accelerate in 2023, surpassing that forecast and the installed base is projected to grow to 71.4 million.Source: S&P Global Market Intelligence

The growth of the installed base of AR/VR headsets is expected to accelerate in 2023, surpassing that forecast and the installed base is projected to grow to 71.4 million.
Source: S&P Global Market Intelligence

Why is Apple expected to defend the AR/VR headset market and not Meta?

When Apple announced on June 5th this year that it was going all-out in the AR/VR hardware market, apple vision proIt was the most accurate representation to date of the idea that AR and VR can be used not only in games and niche commercial settings, but also in everyday life in the same way that we use laptops and phones.

“Other VR headset vendors have either incorporated or said they are working on similar features announced for the Apple Vision Pro, but Apple said its hardware is already a strong presence in users’ daily lives. It has a much stronger sales pitch because of its presence: “Many users have already migrated to new computing platforms over the past 20 years,” S&P said in its latest research report. As a result, potential customers are much more likely to trust Apple to move to new computing platforms.”

Apple has unveiled its first VR headset to challenge Facebook owner Meta in a market that has yet to lure anyone other than video gamers and tech geeks. The release marks the most significant product announcement by the iconic iPhone maker since it unveiled the Apple Watch in 2015. (Photo: Josh Edelson/AFP)

With Apple’s Vision Pro, AR/VR headsets will focus on advanced pass-through cameras and productivity and communication software to make the technology available to a broader consumer base, and over the next five years, S&P said. It suggests that it will develop into a relatively friendly computing platform.

“The next mainstreaming of the AR/VR market will be led by Apple, which has announced that it will start selling the Vision Pro in early 2024. It is not expected to drive sales for the set,” S&P said, with a high entry price of $3,500 and high-end components such as OLED screens limiting availability.

Instead, Apple could create a big buzz in the market and benefit other established meta platformIt will help you establish a market-leading position with your new headset. Quest 3, later this year And the price of existing hardware will be reset.

“The downside is that you have to pay an Apple-like premium for the joy of being an early adopter of that transition. It may take time to find the right price/feature ratio to do so,” S&P said.

How Apple Will or Will Not Evolve in the AR/VR Space

Apple CEO Tim Cook described the headset as a way to “use your apps anywhere, how you want”, including photos, Facetime, Safari, Notes, and Messaging. The video also shows how a user can access a virtual keyboard and multiple apps his windows within the field of view of the headset in a virtual desktop setting.

“Perhaps it is best to think of this launch as a pilot project focused on developers and tech enthusiasts. We plan to iterate and refine it, and as the key use cases become clearer, we’ll be able to tweak the hardware to play to those strengths. models may be reduced or minimized to save costs,” S&P predicts.

Overall, S&P experts expect higher prices to limit first-year shipments to less than 500,000 units. “Apple will likely release more affordable models, or at least continue to strengthen its value proposition to grow its installed base,” the report states.

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