ar vr — ar vr — Worldwide shipments of augmented and virtual reality (AR/VR) headsets, along with display-less smart glasses, are expected to surge by 39.2 per cent in 2025, reaching an impressive 14.3 million units, according to the latest data from the International Data Corporation (IDC).
- Display-less glasses are anticipated to maintain their lead in the market due to their affordability, providing consumers with an accessible entry point into the realm of on-body AI.
The anticipated growth is largely credited to innovative smart glasses like Meta’s Ray-Bans, which are projected to see a staggering 247.5 per cent increase in sales during the year, spurred by new product launches and a growing interest in integrating artificial intelligence (AI) into wearable technology.
Ar vr: Meta’s Dominance in the AR/VR Landscape
Meta continues to lead the AR/VR and display-less smart glasses market, capturing a remarkable 60.6 per cent share in the second quarter of 2025. This strong position is bolstered by the lightweight design of its smart glasses, making them appealing to consumers. Meta’s innovations are not just limited to hardware; they are also paving the way for future developments in true augmented reality glasses.
Emerging Competitors in a Growing Market
Following Meta, Xiaomi holds a 7.7 per cent market share, driven by its AI Glasses and Mija Smart Glasses, which have primarily resonated with consumers in China. Other notable players include XREAL with 4.1 per cent, RayNeo at 2.7 per cent, and Huawei, which has a 2.6 per cent share. These companies are contributing to a competitive landscape as the demand for mixed reality experiences continues to rise.
Shifting Consumer Awareness and Product Availability
Jitesh Ubrani, research manager for IDC’s Worldwide Mobile Device Trackers, highlights the recent introduction of AI features in glasses and the gradual inclusion of displays, which are expanding the use cases for these devices. Although consumer awareness and the availability of AI glasses with displays remain limited, Ubrani anticipates significant changes in the next 18 months, driven by launches from major brands like Meta and Google.
Furthermore, Ubrani notes that the expansion of distribution channels through eyewear brands, opticians, and consumer electronics retailers will enhance product visibility and accessibility. This is expected to shift the market focus from a predominantly gaming audience to a broader demographic that embraces productivity, creativity, and entertainment.
The Role of Gaming and AI Applications
Currently, much of the spending on AR/VR headsets is centred around gaming, with popular titles such as Animal Company, Beat Saber, and Gorilla Tag leading the revenue charts in the first half of 2025. However, AI applications are also starting to gain traction, particularly on platforms like YouTube, which has been the most utilised application.
Forecasting Future Trends and Growth
IDC projects a 19.7 per cent increase in spending on apps, services, and related technologies, potentially reaching nearly $12 billion worldwide by 2025. As new brands and distribution channels emerge, the market is expected to experience considerable growth, with hardware volumes predicted to reach 43.1 million units by 2029, supported by a compound annual growth rate of 31.8 per cent.
Display-less glasses are anticipated to maintain their lead in the market due to their affordability, providing consumers with an accessible entry point into the realm of on-body AI.
