Global extended reality (XR) device shipments grew 44,4% YoY in 2025, driven primarily by rapid adoption of smart glasses, according to new data from IDC.
The latest IDC Worldwide Quarterly Augmented and Virtual Reality Headset Tracker and Worldwide Quarterly Wearable Device Tracker indicate that 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.
IDC says 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). Smart glasses, the research group adds, are wearable devices that resemble traditional eyewear, but integrate features such as audio, cameras, and AI assistants – with or without visual displays.
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% YoY, 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 US 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 to 2030)
- 2025 shipment growth: 44,4% YoY
- Meta market share: 72,2%
- 2026 forecast growth: 33,5%
- 2026 to 2030 CAGR: 26,5%
- Smart glasses (non-display) = majority of shipments
- Display-enabled glasses expected to surpass VR/MR headsets by 2027
IDC says the XR market is transitioning from bulky headsets to lightweight smart glasses, as consumers increasingly prefer wearable, AI-enabled devices designed for everyday use. As far as the outlook for this year is concerned, 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 familiarising consumers with AI-first experiences,” says Jitesh Ubrani, research manager, IDC Worldwide Mobile Device Trackers.