New XR devices to boost the future of extended reality

Virtual and augmented reality, collectively known as extended reality (XR), have faced challenges in recent years due to economic factors. However, the future is looking brighter with the launch of long-awaited devices and the involvement of industry giants. According to CCS Insight, a leading technology market analyst firm, XR devices and XR market in general is set to experience a slight growth in 2023, defying initial concerns. Sales are projected to reach 9.8 million units this year, marking a 6% increase from 2022.

All eyes are on Apple as the tech titan just unveila a groundbreaking new headset. This move could be a game-changer for the XR market. Leo Gebbie, Principal Analyst for Connected Devices at CCS Insight, believes that Apple’s entry into virtual and mixed reality would be a significant shift in the company’s strategic direction, signaling their commitment to exploring the next generation of computing.

Apple’s launch comes on the heels of Sony’s successful introduction of the PlayStation VR2 earlier this year. The combined effect of these industry heavyweights entering the XR space is expected to generate heightened awareness and interest among consumers. Kane McKenna, Analyst for Wearables at CCS Insight, predicts that other major consumer brands, such as Samsung, will follow suit. As a result, the XR market is projected to reach a staggering 75 million unit sales by 2027.

Despite positive expectations, current projections are lower than those made a year ago. The recent increase in retail prices for leading XR devices, coupled with the anticipated premium prices from Apple, may impede widespread adoption. However, this price adjustment is deemed necessary by experts in order to reduce reliance on subsidized devices and enable further investment in innovation. Once consumer appetite is stimulated, CCS Insight anticipates the emergence of more affordable XR devices, facilitating increased adoption.

Businesses continue to be a driving force behind the XR market. The demand for spatial computing, which encompasses XR, remains robust as enterprises recognize its value in various applications such as learning, training, meetings, and remote assistance. CCS Insight’s forecast indicates that businesses are expected to purchase 20% of all XR devices sold within the next five years.

However, challenges persist in the consumer market, particularly in the development of elegant and user-friendly smart glasses. Achieving the delicate balance between power, capability, comfort, and battery life remains a significant obstacle. While progress is being made in building next-generation devices, industry experts believe it will take a few more years before they reach mass-market scale.

Nonetheless, the outlook for the XR market remains optimistic. Despite some skeptics declaring the metaverse concept as dead and buried, technology leaders are making substantial investments behind the scenes. In addition to Apple’s imminent launch, Meta has also unveiled new XR headset. These developments are expected to spearhead a revival of spatial computing, creating exciting possibilities for the future.

CCS Insight, a renowned provider of XR research, offers comprehensive analysis across multiple product segments, presenting various scenarios that consider different market developments. With an extensive database of devices, regular reports, and real-time updates, CCS Insight remains at the forefront of XR technology, helping individuals and businesses navigate the ever-evolving connected world.

The XR market is poised for remarkable growth, fueled by the entry of influential brands like Apple and Sony. As prices adjust and innovation continues, XR devices are set to become more accessible, ultimately leading to widespread adoption. With businesses recognizing the value of spatial computing and technology leaders investing in its development, the future of XR looks promising. Exciting times lie ahead as extended reality takes center stage in shaping the next generation of computing.