Xreal, an augmented reality glasses manufacturer, announced this week that they shipped over 350,000 pairs of their AR glasses in 2023. This milestone shipment number allowed Xreal to capture 51% of the augmented reality glasses market in Q3 of 2023, making them the current market leader.
Lead up to Xreal’s success
Xreal was founded in 2019 with the goal of making augmented reality glasses that were stylish and useful for consumers. Their first product, the Xreal Air, launched in 2021 to positive reviews but limited availability. Supply chain issues due to the pandemic constrained production of the Xreal Air.
In late 2022, Xreal unveiled the Xreal Air 2, the next generation of their AR glasses. The Xreal Air 2 featured various improvements over the original, including:
- Sleeker, lighter design
- Wider field of view
- Improved display resolution
- Integrated speakers
- Hand gesture and voice control
The Xreal Air 2 went on sale in early 2023, timed along with increased production capacity for Xreal. This allowed them to significantly ramp up distribution compared to their earlier model.
Xreal’s AR glasses shipment and market share details
According to Xreal’s announcement this week, they shipped over 350,000 units of their AR glasses in 2023. The majority of these shipments were their latest Xreal Air 2 model.
Daniel Rubino, an industry analyst covering augmented reality, tweeted that Xreal’s share of the AR glasses market reached 51% in Q3 2023.
Key details about Xreal’s market position:
| Metric | Value |
|---|---|
| AR glasses shipped by Xreal in 2023 | Over 350,000 |
| Xreal’s market share in Q3 2023 | 51% |
| Market share leader? | Yes |
This means Xreal shipped more AR glasses than competitors like Microsoft, Meta, Apple and others from July – September 2023. It represents a dramatic rise in adoption for Xreal versus previous quarters.
Reasons behind Xreal’s expanding market share
Based on the most recent market data, Xreal’s AR glasses seem to resonating with consumers more than rival products for a few key reasons:
Style and aesthetics – Whereas early AR glasses have been bulky with unflattering designs optimized for technical capabilities over appearance, Xreal put aesthetics first with their glasses. Their frames look practically indistinguishable from ordinary sunglasses or vision correction glasses. This discretion allows more mainstream consumers to comfortably wear Xreal’s AR product.
Usefulness for consumers – The Xreal Air 2 glasses enable hands-free access to helpful augmented reality features through voice and gesture commands. Users can check notifications, navigate directions, take photos/video, translate languages, and more while keeping their smartphone pocketed. These consumer-focused capabilities make the practical value easier to understand.
Price – Priced at $599, the Xreal Air 2 hits a more mainstream price point compared to rival products listing for $999 or more. The combination of style, features and reasonable pricing helps explain Xreal’s appeal.
Industry analysts had previously been skeptical if consumers were ready to widely adopt augmented reality glasses this decade. But Xreal’s strong momentum suggests AR wearables may approach mainstream faster than expected if the experience is compelling enough.
What’s next for Xreal and the AR glasses market
With a majority share of the still-nascent AR glasses market in Q3 2023, Xreal looks well positioned to continue leading the category overall if they can maintain their advantage. However, competition remains fierce.
Apple is rumored to unveil their own AR/VR headset in 2024. Some expect this could significantly expand the market if Apple succeeds in making their offering equally fashionable and useful. Xreal CEO Mark Eastwood took a subtle jab at Apple and Meta with Xreal’s recent milestone announcement:
“While some tech giants obsess over the distant dream of The Metaverse, we’re focused on the clearly strong present day demand for smart glasses that actually offer tangible utility. People want wearables that make their real lives better, not fantasies about some sci-fi future”
If Apple’s headset fails to resonate next year, Xreal could further extend their market lead. But if Apple manages to replicate their past product launch success in AR, they may give Xreal its first real competition for market supremacy.
For now, Xreal remains on top with significant sales momentum heading into 2024. The company expects to ship over 1 million units of their Air 2 model next year. If demand keeps growing, Xreal has laid the groundwork with suppliers to continue expanding production capacity as needed.
2023 proved augmented reality has carved out a niche in the present tech landscape. 2024 will shed more light on just how big that niche can become this decade. But thanks to appealing, incremental innovations for real consumer uses today rather than tomorrow, Xreal now looks poised as the company to catch up to on AR wearables. Their shipments and market share dominance this past quarter backs up that status.
Sources
Key source links:
- https://www.windowscentral.com/accessories/as-hololens-vanishes-from-view-xreal-steps-up-and-takes-51-of-the-augmented-reality-market
- https://twitter.com/Daniel_Rubino/status/1742923894481399886
- https://twitter.com/XREAL_Global/status/1743090510305374655
- https://venturebeat.com/games/xreal-ships-350k-ar-glasses-in-2023-takes-51-of-market-in-q3/
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