BOSTON, March 23, 2026 – Global extended reality (XR) device shipments grew 44.4% year-over-year in 2025, driven primarily by rapid adoption of smart glasses, according to new data from the (IDC) Worldwide Quarterly Augmented and Virtual Reality Headset Tracker and Worldwide Quarterly Wearable Device Tracker. As lightweight, AI-enabled eyewear gained traction, shipments of virtual reality (VR) and mixed reality (MR) headsets declined sharply, signaling a structural shift in how users engage with XR.
What is extended reality (XR)?
Extended reality (XR) refers to technologies that blend or extend physical and digital environments, including virtual reality (VR), augmented reality (AR), and mixed reality (MR).
What are smart glasses?
Smart glasses are wearable devices that resemble traditional eyewear but integrate features such as audio, cameras, and AI assistants, with or without visual displays.
What is driving XR market growth in 2025?
The expansion of smart glasses availability—led by products such as Ray-Ban Meta AI glasses and competing devices—was the primary driver of XR market growth. At the same time, demand for bulkier VR and MR headsets narrowed, increasingly concentrated in gaming-centric use cases.
Who leads the XR market in 2025?
Meta maintained a dominant position, capturing 72.2% market share, supported by:
- Its partnership with EssilorLuxottica
- A broadened smart glasses portfolio
- New product launches, including an Oakley-branded performance eyewear line
However, shipments of Meta’s Quest headset lineup declined 42.3% year-over-year, impacted by supply chain challenges and softening demand outside core gaming audiences.
How are other vendors performing?
- Xiaomi ranked second with 4.2% share, driven largely by China
- XREAL captured 2.3% share, focused on gamer-oriented display glasses
- RayNeo expanded U.S. presence with aggressive pricing
- ByteDance and Viture tied at 1.5% share, with diverging performance:
- ByteDance shipments declined 30.5% YoY
- Viture shipments grew 94.9% YoY, driven by retail expansion and portfolio refresh
Key XR Market Statistics (2025–2030)
- 2025 shipment growth: 44.4% YoY
- Meta market share: 72.2%
- 2026 forecast growth: 33.5%
- 2026–2030 CAGR: 26.5%
- Smart glasses (non-display) = majority of shipments
- Display-enabled glasses expected to surpass VR/MR headsets by 2027
What is the biggest shift in the XR market?
The XR market is transitioning from bulky headsets to lightweight smart glasses, as consumers increasingly prefer wearable, AI-enabled devices designed for everyday use.
What is the XR market outlook for 2026 and beyond?
IDC expects 2026 to be a transition year, as the market continues shifting toward glasses-based form factors.
- Smart glasses without displays will drive near-term growth
- Display-enabled glasses will gain momentum by 2027
- Competition will intensify across both hardware manufacturers and AI platform providers
“New products from Google’s Android XR ecosystem, Snap, and a growing number of Chinese vendors will accelerate adoption by expanding smart glasses availability and familiarizing consumers with AI-first experiences,” said Jitesh Ubrani, research manager, IDC Worldwide Mobile Device Trackers.
How will XR hardware evolve?
Display-equipped smart glasses are expected to evolve beyond simple heads-up displays into more immersive devices capable of supporting media consumption experiences that currently require MR headsets—delivered in significantly slimmer and lighter form factors.
What challenges could slow XR adoption?
IDC cautions that supply chain constraints may limit the pace of innovation:
- The XR supply chain remains immature
- Key components are IP-intensive, limiting competition
- Hardware differentiation may slow
As a result, software, services, and onboard AI will become primary differentiators across XR devices.
What this means for the XR market
- Smart glasses are becoming the dominant XR form factor
- AI is emerging as the primary driver of differentiation
- Hardware innovation will depend on supply chain maturity
- Competition is expanding across both devices and AI ecosystems
About IDC
International Data Corporation (IDC) is the premier global provider of trusted technology intelligence, advisory services, and events. With more than 1,000 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 100 countries. IDC’s analysis and insights help IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. To learn more about IDC, please visit www.idc.com. Follow IDC on X at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
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