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.
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 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.
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.
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
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,” says Jitesh Ubrani, research manager at IDC Worldwide Mobile Device Trackers.
Looking ahead to 2026, IDC expects a tumultuous transition year as the XR market continues shifting from traditional headsets toward glasses. Glasses without 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.
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.