On the backs of a tough economic environment and rising prices, International Data Corporation (IDC) has reduced its outlook for augmented reality (AR) and virtual reality (VR) headsets for the remainder of 2022 and beyond. Global shipments for AR and VR headsets will decline by 12.8% in 2022, dropping to 9.7 million units. Growth is expected to return in 2023 as shipments are forecast to jump 31.5% year over year. Sustained growth of more than 30% is also forecast for the next several years culminating in 35.1 million units shipped in 2026.

Worldwide shipments of Augmented Reality (AR) headsets are forecast to decline 8.7% year over year to nearly 260,000 units by the end of 2022, according to new data from the International Data Corporation (IDC) Worldwide Quarterly Augmented and Virtual Reality Headset Tracker.

Growth factors in the augmented reality space will propel the market forward. According to new research by ABI Research, nearly 28 million augmented and mixed reality smart glasses will ship in 2026. The growth and demand are spread across both enterprise and consumer, with gradual but steady enterprise demand meeting with accelerating consumer activity in the next few years.

ABI Research estimates global smart glasses shipments for automotive industry use will hit 1.7 million in 2022. The total automotive AR market is expected to grow at CAGR of 177 percent during the forecast period and reach $5.5 billion in 2022.