Global extended reality (XR) device shipments grew by 44.4% year-over-year in 2025, driven primarily by rapid adoption of smart glasses, according to new data from the International Data Corp. (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.

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.

Meta maintained a dominant position, capturing 72.2% market share, supported by its partnership with EssilorLuxottica, a broadened smart glasses portfolio, and 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.

Vendor performance

Xiaomi ranked second with 4.2% share, driven largely by China. XREAL, meanwhile, captured 2.3% share, focused on gamer-oriented display glasses.

RayNeo expanded its U.S. presence with aggressive pricing, while ByteDance and Viture tied at 1.5% share, with diverging performance: ByteDance shipments declined by 30.5% year-on-year (YoY), while Viture shipments grew by 94.9% YoY, driven by retail expansion and portfolio refresh.

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.

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.

displays already represent the majority of XR shipments, but by 2027, IDC expects glasses with displays to gain momentum and surpass VR and MR headsets in overall volume.

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.

By: DocMemory
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