This week, Zappar, a provider of XR end-to-end solutions and affordable MR headsets, underwent a $45 million acquisition led by Infinite Reality, helping the firm boost its XR content creation platform and hardware to global clients.
With the $45 million Infinite Reality acquisition, Zappar will be able to scale its product portfolio, perhaps in a bid to boost the presence of Zappar’s affordable MR headset, following recent similar announcements from the likes of Meta-further expanding the global availability of affordable XR devices from different vendors.
John Acunto, the Co-Founder and CEO of Infinite Reality, added:
I am thrilled to welcome Zappar to our team. We look forward to integrating their incredible technology with the Infinite Reality Studio and our proprietary iR Engine, as well as working with the distinguished staff.
With the multi-million investment from Infinite Reality, Zappar can “reshape” its commercial ambitions and scale new media experiences accessible via its affordable MR headset Zapbox, which attaches to iPhone 11 or later models to enable quick and easy access to immersive experiences.
Moreover, for businesses looking to jump into XR, Zapper offers Zapworks, Mattercraft, and Designer, a collection of streamlined XR software frameworks that enable clients to create and distribute 3D web content, immersive applications, and AR/VR content on a variety of end devices, including smartphones and desktops. While also support emerging headsets such as Apple Vision Pro, Meta Quest 3, and Magic Leap 2.
Caspar Thykier, Co-Founder and CEO of Zappar, explained that the Infinite Reality investment and inclusion of Zappar’s product into the investment group’s existing portfolio helps the firm scale technology and “reach a much wider audience of clients and consumers and further expand our U.S. presence.”
Thykier also added:
With synergies across iR’s other subsidiaries, we can leverage our combined expertise to continue shaping the future of extended reality. We are extremely excited to join the Infinite Reality family and start this new chapter for the business and our partners.
Amish Shah, Co-Founder and Chief Business Officer of Infinite Reality notes that the firm is seemingly deep in expanding its portfolio heading into 2025.
The XR space is growing to reach new computing opportunities outside of the realm of VR headsets that once stole headlines. The future is going full speed towards AR and MR technologies, as it appears Infinite Reality is keen to get ahead of technology trends, “this marks the sixth acquisition for Infinite Reality this year alone,” Shah remarked.
Shah noted:
Zappar’s strong European presence and partnerships with global brands align perfectly with our expansion strategy. By integrating their expertise into our portfolio, we’re creating a powerhouse of immersive technology that spans continents and industries.
The news came following a successful number of years for Zappar, which saw the firm work with a rich clientele consisting of global firms such as Nestle, Unilever, NBC Universal, Bayer, Pfizer, Rovio, Disney, and H&M. The list looks to grow following the recent investment.
MR Headset Market to Grow
The latest report from IDC shows a significant decrease in global shipments of AR/VR headsets in the first quarter of 2024. According to the report, there was a 67.4% year-over-year drop in shipments in Q1, with VR headsets being particularly impacted as consumers shifted their focus to MR/AR devices.
Despite the decrease in sales, the average selling price increased by over $1000, partly due to the introduction of the Apple Vision Pro. Since the dominance of the Quest 2 in 2020, the prices of several consumer headsets have been gradually rising.
However, the overall forecast is optimistic, as the starting entry price for MR headsets is expected to decrease, prompting consumers to transition from VR to MR/AR devices. With the introduction of new mass-market products, IDC anticipates a 43.9 per cent CAGR in headset shipment volume from 2024 to 2028.
Additionally, while consumer-facing devices experienced a decline, separate reports indicate a rise in using XR devices in enterprises. The IDC report also shows consistent growth in the use of enterprise XR devices.
