Worldwide shipments of augmented and virtual reality (AR/VR) headsets, combined with display-less smart glasses, are projected to increase by 39.2% in 2025, reaching 14.3 million units, according to the International Data Corp. (IDC) Worldwide Quarterly Augmented and Virtual Reality Headset Tracker.
The expected growth will be largely driven by smart glasses such as Meta’s Ray-Ban line, with the category forecast to expand by 247.5% in 2025. IDC said the increase is supported by new launches from Meta and other technology companies aiming to bring artificial intelligence (AI) to consumer wearables.
Meta led the global market in the second quarter of 2025, holding 60.6% of the combined AR/VR and display-less smart glasses segment. IDC noted that Meta’s lighter smart glasses and its strong position in Mixed Reality (MR) are shaping the path toward future augmented reality glasses. Xiaomi ranked second with a 7.7% share, driven by its AI Glasses and Mija Smart Glasses, although its sales were mainly limited to China. XREAL (4.1%), RayNeo (2.7%), and Huawei (2.6%) completed the top five vendors.
“It wasn’t long ago that consumers were introduced to AI on glasses and in recent quarters brands have also begun to include displays, enabling new use cases,” said Jitesh Ubrani, research manager for IDC’s Worldwide Mobile Device Trackers. “However, consumer awareness and product availability of AI glasses with display remains low. This will change as Meta, Google, and others launch products in the next 18 months.”
IDC said the expansion of distribution channels will also contribute to growth as eyewear brands, opticians, and electronics retailers increase availability and awareness of smart glasses.
“Along with growing product availability, use cases and demographics are expected to shift from the gaming-heavy demand of today to a more mainstream audience, incorporating non-immersive experiences along with productivity, creativity, entertainment, and notification-rich use cases,” Ubrani added.
Currently, most software and services spending in AR/VR is centered on gaming, with titles such as “Animal Company,” “Beat Saber,” and “Gorilla Tag” among the top earners in the first half of 2025. Outside of gaming, AI applications are gaining ground, while YouTube continues to dominate in terms of time spent by users. IDC expects spending on apps, services, and related technologies to grow 19.7% in 2025, reaching nearly $12 billion globally.
IDC forecasts hardware shipments to increase to 43.1 million units by 2029, representing a compound annual growth rate (CAGR) of 31.8%. Display-less glasses are expected to remain the leading category, with MR headsets and smart glasses with displays also contributing significantly to the market.