June 19, 2024

XREAL Ships Record Number of AR Glasses and Takes Majority Share of Growing Market

Written by AiBot

AiBot scans breaking news and distills multiple news articles into a concise, easy-to-understand summary which reads just like a news story, saving users time while keeping them well-informed.

Jan 5, 2024

XREAL, the augmented reality (AR) headset maker, announced on January 3rd that it shipped 350,000 AR glasses in 2023, representing over 50% market share and solidifying its position as the dominant player in the burgeoning AR space.

Mass Adoption Finally Arriving for AR

After years of stops and starts, the augmented reality market finally appears to be hitting an inflection point with the success of the XREAL Air 2 glasses. The lightweight and stylish design combined with powerful processing and display capabilities in a $599 package has proven to be the right mix of features and pricing to drive mass consumer adoption.

Daniel Rubino, Executive Editor at Windows Central, tweeted that the sales figures represent “a huge milestone showing consumers are ready” for spatial computing devices. This validation from consumers has been a long-time coming for an industry that has seen AR, VR, and other related technologies perpetually “on the cusp” but never quite getting over the hump.

With the Air 2, XREAL seems to have cracked the code by focusing on three key pillars:

  1. Form factor – slim, lightweight, and comfortable enough to wear all day
  2. Price – affordable at $599 considering the technology inside
  3. Use cases – emphasis on communication, navigation, gaming and other practical real world applications

Industry analysts are bullish this is just the beginning and expect accelerating growth. According to IDC, the AR glasses market is forecasted to grow at 58% CAGR from 2022-2026.

XREAL Grabs Majority Market Share

In the third quarter of 2023, XREAL shipped 140,000 AR headsets representing 51% market share according to analyst reports. The company saw surging demand in the back half of 2023 as supply constraints from earlier in the year eased.

XREAL basically doubled its closest competitor, Vuzix, which had an estimated 26% share. The rapid change in competitive dynamics is remarkable given that in 2021 industry pioneer Microsoft still accounted for the bulk of AR headset shipments with its HoloLens 2, first released back in 2019. However, HoloLens has faded from prominence given enterprise and industrial focus combined with limited availability.

Meanwhile, upstart XREAL has outpaced expectations since being founded just 4 years ago in 2020 by former Apple designers. The company raised over $500 million within its first two years to quickly ramp up supply chain, manufacturing, software ecosystem partnerships and other key operations. This strategy has clearly paid dividends based on the explosive Q3 sales and market position.

What’s Next for the AR Industry

With solid market validation in hand, attention now turns to the future and what comes next for XREAL and competitors in accelerating augmented reality adoption.

More Innovation from XREAL

XREAL Founder and CEO Simon Wu has hinted at a busy 2024 product roadmap during interviews over the last month. Wu admits the company is still supply constrained from the red hot demand. He confirmed plans to launch a successor headset by end of 2024 as well as previewing ideas his team has to take AR glasses into new form factors for both consumers and enterprise.

While details remain scant, improvements to field of view, display quality, processing power and battery life are all expected in the next version paired with an even slimmer design. Enterprise functionality also looks to be a priority to expand the total addressable market beyond consumers.

Influx of Competitors

Success breeds competition and imitation. With the AR market clearly demonstrating strong traction, a flood of new entrants and products are expected in 2024 and beyond.

Apple and Facebook are the mega-cap tech companies most heavily rumored to unveil AR wearables this year. Apple’s alleged “Apple Glass” headset has been rumored for over 5 years, with the pressure mounting in 2023 after being caught flatfooted by XREAL’s rise.

Facebook is similarly desperate to get into the AR game and recapture their early lead in virtual reality. Their “Project Nazare” AR glasses initiative led by key technologists from their Oculus VR acquisition will be one to watch in 2024.

In addition to these consumer titans, a range of startups fresh off recent funding rounds will look to carve out niche spaces vs directly attacking XREAL. Companies like WaveOptics (enterprise/industrial use cases), Tilt Five (tabletop gaming) and (advertising/messaging) have potential to drive incremental awareness and expand the category overall.

Cloud Gaming Integration

An emerging use case cited by many analysts for the next phase of AR growth is integration with cloud gaming. Early experimentation on the XREAL Air 2 with Xbox Cloud Gaming (xCloud) and NVIDIA GeForce NOW has already shown strong promise.

Expect substantial innovation in blending cloud-streamed games with augmented reality environments this year. Hardware improvements will push the envelope on seamless headsets while software enhancements better optimize gaming UI/UX for AR displays compared to standard screens.

Ultimately, the goal is immersive cross-platform gaming that transcends any one device – play your Xbox game streamed from the cloud using XREAL AR glasses on the go, then pick up from the same save point later on at home using a Game Pass streaming stick plugged into your TV. This continuum of experiences stands to take interactive entertainment to extraordinary new heights.

The next few years will prove incredibly exciting on this augmented reality frontier with XREAL having clearly established itself as the trailblazing company to watch in the space based on their watershed 2023 achievements. With foundational elements like use cases, form factor and pricing coming together, we are witnessing the start of the spatial computing revolution that technologists have long envisioned.




AiBot scans breaking news and distills multiple news articles into a concise, easy-to-understand summary which reads just like a news story, saving users time while keeping them well-informed.

To err is human, but AI does it too. Whilst factual data is used in the production of these articles, the content is written entirely by AI. Double check any facts you intend to rely on with another source.

By AiBot

AiBot scans breaking news and distills multiple news articles into a concise, easy-to-understand summary which reads just like a news story, saving users time while keeping them well-informed.

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