China’s VR/AR market has seen dramatic shifts in Q2 2023, as revealed by the latest data from Runto Technology (RUNTO). In this period, the market witnessed sales of 178,000 units, marking a year-on-year (YoY) decline of 51.2%. But this broad figure hides a fascinating story of divergence between the two technologies.
AR Devices See a Slight Decrease in Average Pricing
Virtual Reality (VR) online sales endured a significant downfall, with a 60.9% YoY decrease. The factors behind this steep drop remain speculative but could be linked to shifting consumer preferences or technological advancements in other areas.
Contrasting VR’s decline, Augmented Reality (AR) devices have seen a meteoric rise, with a staggering 258% YoY growth in sales. Additionally, AR devices’ market share has increased by 38% within the overall online VR/AR sector. This growth trend is accompanied by a mild reduction in the average price of AR devices, now at 2,828 yuan.
Three brands, namely Raybird Innovation, XREAL, and Rokid, have emerged as the dominant players in China’s AR online market. They hold an extraordinary 90.2% combined market share, as per the CR3 index, for the second quarter. Raybird Innovation leads with a 39.1% share, followed by XREAL at 32.2% and Rokid at 18.9%.
The divide between VR and AR could signify a broader shift in consumer interest and technology development. While VR’s immersive experience might be losing appeal, AR’s ability to blend virtual elements with the real world is gaining traction. This shift might also be influenced by a wider range of applications and the utility that AR offers. Apple’s recently announced AR headset, Vision Pro, has already contributed significantly to boosting the AR industry, despite its unreleased status.
RUNTO’s forecast for the remainder of 2023 seems to underline this trend, projecting robust growth in China’s consumer-grade AR devices market. The expected annual total sales across all channels could range between 200,000 and 250,000 units, translating to an incredible YoY growth of 100% to 150%.
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