The global AR/VR headset market saw a year-over-year growth of 18.1% in the latest quarter, showing a steady recovery, according to market intelligence firm International Data Corp. (IDC). Meta led the rebound with a 50.8% market share.
“The market is clearly shifting toward more immersive and versatile experiences,” said Jitesh Ubrani, research manager for IDC’s Worldwide Mobile Device Trackers. “While Meta continues to lead, the rise of brands like Viture and XREAL shows that innovation in form factor and user experience is resonating with consumers.”
Ubrani added that the next phase of growth will likely come from mixed and extended reality, as artificial intelligence (AI) and Android XR platforms continue to improve.
Though IDC expects a 12% decline in total headset shipments for 2025 due to product delays, a recovery is projected in 2026 with an 87% increase. By then, shipments are expected to surpass the pandemic peak of 11.2 million units. IDC forecasts a 38.6% compound annual growth rate from 2025 to 2029.
XREAL ranked second among vendors, powered by its One series. Viture recorded 268.4% year-over-year growth, while TCL saw a 91.6% increase. The “Others” category dropped 47.2%, showing a shift toward established and emerging brands with focused product strategies.
This quarter also marked a shift in hardware trends, with XREAL, Viture, and TCL, all specializing in optical-see-through (OST) glasses, together accounting for 22.5% of the market. Sony and Apple did not appear in the top five, as retailers continued to manage existing inventories.
IDC noted a changing market landscape, with Virtual Reality (VR) shipments expected to fall while Mixed Reality (MR) and Extended Reality (ER) grow. While MR will likely remain geared toward gaming and content, ER products, such as smart glasses, are expected to gain ground in both consumer and enterprise sectors.
“Pure VR was once the darling of the market, with companies like Meta, HTC, and Sony accounting for the vast majority of volumes. Now we have it on track to wind down in the next few years,” said Ramon Llamas, research director with IDC’s ARVR team. “We anticipate MR to experience a strong reception with many of those VR companies pivoting there and gaining entrants like Apple.”
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