IDC: Overall AR/VR shipments in China fell by 37.8% in the first quarter, with a turnaround expected in the second half of the year

According to the Zhitong Finance and Economics APP, IDC's latest "AR/VR Headset Market Quarterly Tracking Report" shows that in the first quarter of 2024, China's AR/VR headset shipments were 107,000 units (sales-in basis), a year-on-year decrease of -37.8% compared to 2023. Among them, AR shipments were 8,000 units, a year-on-year increase of 119.2%; ER shipments were 44,000 units, a year-on-year increase of 136.2%; MR shipments were 34,000 units, a year-on-year decrease of 52.7%; VR shipments were 22,000 units, a year-on-year decrease of 72.6%. Apple Vision Pro is expected to enter the Chinese market at the end of June, mainly focusing on the commercial high-end education market. It is expected to drive domestic MR&VR manufacturers to layout and develop in the high-end market segment, intensifying competition among manufacturers. Insights into the AR&ER Market in Q1 2024 In the first quarter of 2024, the overall AR/ER (formerly AR) market shipped 52,000 units, with standalone glasses shipments of 44,000 units, a year-on-year growth of 150.4%; integrated glasses shipments were 8,000 units, a year-on-year growth of 70.7%. The AR market is mainly dominated by integrated glasses. In Q1, it is still the off-season for manufacturers' shipments. With the entry of mainstream brands in the second half of 2023, more manufacturers in China will start to launch integrated AR glasses with processors this year. The ER market is currently dominated by standalone glasses, with competition among various companies remaining intense. The main direction to boost market shipments this year includes technological upgrades for exclusive terminal connections, expanded built-in content, and enriched scenario diversification. Terminal upgrades can better empower the products themselves, enhance user experience, and address some pain points of viewing glasses. In addition, in terms of shipment channels, this year, various manufacturers will start to expand offline channels and collaborate with other sectors (such as new energy vehicles) to jointly promote shipments through technological linkage. Insights into the VR&MR Market in Q1 2024 In the first quarter of 2024, the overall VR/MR (formerly VR) market shipped 55,000 units, with standalone headsets shipments of 7,000 units, a year-on-year decrease of 83.3%; integrated headsets shipments were 49,000 units, a year-on-year decrease of 55.8%. Integrated headsets accounted for 69% of the VR market, with manufacturers clearing inventory at low prices in Q1, leading to a slight increase in overall market share compared to the past few quarters. Standalone headset shipments dropped from the ten thousand level to the thousand level, accounting for 31%, a year-on-year decrease of 83.3%, reaching the lowest point in the past five quarters. The main reason is that manufacturers will focus on launching new products in the second half of the year, reducing shipments in the first quarter to mainly deplete old product inventory At the same time, IDC predicts that the VR category will gradually transition into the MR market in the next few years. The MR market currently consists of all-in-one headsets, with the main product Pico 4 entering the end of its product lifecycle and starting to decline. It is expected that after Apple Vision Pro enters the Chinese market in June this year, the development of the supply chain system will accelerate, and manufacturer competition will intensify. Although it may not bring explosive growth, it is expected to drive the upgrade and growth of the entire MR market in terms of product hardware and software levels as well as shipment volume. IDC predicts that in the second half of 2024, the main development trends in the domestic AR/VR market are as follows: Spatial computing in AR&ER applications: Mainstream AR&ER manufacturers are beginning to introduce the concept of spatial computing into product applications in different ways. Although the current usage scenarios are relatively limited, it can be felt that all manufacturers are exploring new AI+AR models, which will drive the upgrade of products in the entire field and further enrich the ecosystem. Accelerated development of high-end lines in VR&MR: Apple Vision Pro is expected to enter the Chinese market at the end of June, mainly focusing on the commercial high-end education market. By then, it will promote the layout and development of domestic MR&VR manufacturers in the high-end line, intensifying competition among manufacturers. IDC China analyst Ye Qingqing believes that in the first quarter of 2024, AR/VR manufacturers will slow down their pace, preparing for later product releases and shipments. In 2024, multiple factors will further drive the overall market development, including the accelerated upgrade of AI technology, the improvement of supply chain cost structure, the accelerated establishment of channel systems, and the increase of new entrants. It is believed that the Chinese AR/ER market will see greater technological breakthroughs this year, while the VR/MR market will finally see the long-awaited warming growth