Global XR revenue is forecast to grow year-on-year through 2023 with some delayed growth for AR/MR headsets, according to new figures from SuperData. Here’s an outline of the projected changes as well as other highlights from the quarter.
In its Q3 update, SuperData has outlined the forecast growth in global XR revenue as far as 2023. Overall, forecast revenue is at $6.7 billion for 2020, growing to $7.7 billion in 2021, $9.4 billion in 2022 and $11.3 billion in 2023.
In terms of VR revenue, though this figure declined from $3.3 billion in 2019 to a projected $2.9 billion for 2020, VR is expected to maintain the largest share of industry revenues over the next three years in comparison to mobile AR and AR/MR headsets. In 2023, VR revenue is expected to reach as high as $5.7 billion.
Based on Q3 data, the Oculus Quest was the top-selling VR headset of the quarter, selling 161K units, with sales expected to jump in line with the Quest 2. Combined with pent-up demand and the upcoming holiday season, projected 2021 sales for the Quest 2 are now at 3.0 million units, up from previous estimates of 2.6 million.
Notably, AR/MR headset revenue is predicted to make particular strides between 2022 and 2023, growing by 50% from $1.8 billion to $2.7 billion. The relatively late widespread consumer adoption of this XR area is anticipated in spite of Facebook’s recently announced venture into smart glasses, as well as Apple’s investment in similar areas.
Other XR Highlights
- The release of the PC VR game, “Half-Life: Alyx,” along with other major titles means that PC VR revenue is forecasted to rise 119% year-over-year from $86.1M in 2019 to $189M in 2020.
- As the economic fallout of the pandemic continues to develop, projected investment in VR and AR companies for 2020 ($915 million) remains lower than 2019’s total of $1.0 billion, but is up from SuperData’s prior estimate of $830 million.
- The Valve Index headset saw sales of 56K units during Q3, but as the report acknowledges Valve’s struggles to fulfill orders – with an eight-week wait for buyers – have likely prohibited a significantly larger number of sales.
Read the data in full here.
About the Data: Findings are based on SuperData estimates.