Oculus Quest 2 Cumulative Gross sales Hit File 4.6 mn as XR Headset Shipments Nearly Triple YoY in Q1 2021

Extended Reality (XR) headset shipments nearly tripled annually in the first quarter of 2021, according to the latest research from Counterpoint’s Global XR (VR & AR) Model Tracker. The success of Oculus Quest 2 fueled these volumes.

Offering great hardware at a reasonable price, Oculus improved the Quest 2’s performance with regular software updates while increasing user engagement. By the first quarter of 2021, the Quest 2 had shipped a cumulative 4.6 million headsets, a record for every single model.

Commentary on market dynamics, Senior Analyst Karn Chauhan said: “The stand-alone Virtual Reality (VR) form factor led the global XR market with 85% shipments in Q1 2021, compared with 42% in Q1 2020. The transition from tethered to stand-alone VR will be driven primarily by the Quest Series driven forward. Other XR headset OEMs are also focusing on the standalone form factor as it is the device of choice for users, especially gamers. The Augmented Reality (AR) segment contributed just 4% in the first quarter of 2021, which was driven by the few enterprise-level deals with AR headset OEMs. The AR consumer segment is still in its infancy as most of the compelling use cases are met through mobile AR. There is also a lack of disruptive mass market or even mainstream AR headsets. “

Comment on brand performance, Senior Analyst Harmeet Singh Walia said: “Oculus achieved a record 75% share of global XR shipments in Q1 2021, compared to 34% in Q1 2020 thanks to the continued success of Quest 2. Chinese brand DPVR climbed to second position for the first time by adding its Focus on the corporate and education sector. With no successor to PlayStation VR, Sony dropped to third place for the first time since 2016. Pico and Valve finished fourth and fifth, respectively, while HTC, whose focus was increasingly limited to the niche enterprise segment, slipped to sixth place.

In view of the few new releases from major players planned for 2021, the Oculus Quest 2 will rule unchallenged. It has now established itself as a leading player in the XR segment, especially in gaming, and is unlikely to be replaced in the near future despite increasing competition. The Quest 2 offers a great wireless form factor experience and gives it an edge over the competition. However, competition in this segment will also increase in the coming years, with Sony likely to penetrate this segment.

Although many enterprise and industrial use cases for XR are currently available and in development, growth in this segment is slower than expected in some areas. Industrial use cases with greater potential include field service support, education, training, media, and more. We can therefore expect a steadily increasing, albeit slow, trend for companies and other organizations to invest more in the development and use of XR devices and services, especially after 2025.

Players like Microsoft, Varjo, and HTC are taking a broader enterprise-level approach to targeting this low volume, high ASP segment. A lighter, more energy-efficient version of Microsoft’s HoloLens with longer battery life, sold under $ 1,000, combined with its strong base in major economies, has the potential to make Microsoft a major player in the consumer segment as well. However, we don’t expect Microsoft to launch such a device in the first half of this decade.

We expect XR to continue growing at double digits over the next four years. Apple’s entry will likely catalyze the participation of several other brands, particularly the Chinese smartphone OEMs, which are also in the smartwatch segment.


Counterpoint Technology Market Research is a global research company specializing in products in the technology, media and telecommunications (TMT) industry. It serves large technology and finance companies with a mix of monthly reports, bespoke projects, and in-depth analysis of the wireless and technology markets. The most important analysts are experienced experts in the high-tech industry.


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