FRAMINGHAM, Mass.--(BUSINESS WIRE)--Worldwide shipments of virtual reality (VR) headsets were down 33.7% year over year in the second quarter of 2018 (2Q18), according to the International Data Corporation (IDC) Worldwide Quarterly Augmented and Virtual Reality Headset Tracker. IDC expects this to be a temporary setback as the VR market finds its legs. The arrival of new products, such as the Oculus Go and HTC Vive Pro, and new brands, combined with the need for greater headset fidelity all point to a positive outlook for the quarters ahead.
Screenless viewers brought a lot of attention to VR in the early days as the entire market was artificially propped up by brands like Samsung, Alcatel, and Google that bundled the headsets with smartphones. However, since then, the screenless viewer category has declined substantially, shrinking from 1 million headsets in 2Q17 to 409,000 in 2Q18. This category was the largest contributor to the decline in shipments for the overall VR headset market.
Tethered VR headsets declined 37.3% in 2Q18 largely because major brands like Oculus and Sony were unable to maintain the momentum established during a period of price reductions in 2Q17. As a result, the two brands managed to ship 102,000 and 93,000 headsets respectively in 2Q18. The category leader, HTC, shipped close to 111,000 headsets (excluding the standalone Vive Focus) thanks to the growing popularity of the Viveport subscription service as well as the launch of the Pro headset.
Standalone VR headsets grew 417.7% during the quarter, largely due to the global availability of the Oculus Go/Xiaomi Mi VR, which managed to ship 212,000 headsets.
While the consumer side of the VR headset market remains the focus of attention, the commercial side has seen pilots and large-scale deployments gaining traction. In 2Q18, roughly 20% of VR headsets were destined for the commercial sector, up from 14% in 2Q17. Along with the increase in share, average selling prices (ASPs) have also increased from $333 to $442 during the same period.
"One of the major issues with the VR market is that consumers still find it difficult to try a VR headset," said Jitesh Ubrani senior research analyst for IDC Mobile Device Trackers. "This is where the commercial market has an opportunity to shine. HTC's recent partnership with Dave & Busters or Oculus' work with schools around the world stand to play an important role in educating and enticing consumers to use VR."
"In a market where mainstream VR content is still lacking, a growing number of vendors are looking to commercial as a way to build their business while they wait for the consumers to catch up," said Tom Mainelli, program vice president, Devices and Augmented and Virtual Reality at IDC. "These vendors are moving beyond entertainment-focused B2C deployments to real-world training scenarios in companies of all sizes, all over the world. IDC expects commercial buyers to represent an increasingly important percentage of the market going forward.”
About IDC Trackers
IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.
For more information about IDC's Worldwide Quarterly Mobile Phone Tracker, please contact Kathy Nagamine at 650-350-6423 or email@example.com.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.
All product and company names may be trademarks or registered trademarks of their respective holders.