The global extended reality (XR) market rebounded sharply in 2025, with total device shipments growing 44.4% year over year, according to new data from IDC’s Worldwide Quarterly Augmented and Virtual Reality Headset Tracker and Worldwide Quarterly Wearable Device Tracker. Growth was driven primarily by the rapid expansion of smart glasses, while shipments of traditional virtual reality (VR) and mixed reality (MR) headsets continued to decline.
Smart glasses from vendors such as Meta, Xiaomi, and emerging display-glasses specialists moved XR closer to everyday wearables and away from bulky, gaming-centric hardware. Products like Ray-Ban Meta AI glasses, alongside a growing number of competing designs, helped redefine consumer expectations for XR as lightweight, always-on, and increasingly AI‑first.
Smart Glasses Drive XR Growth
While VR and MR headsets remain heavily concentrated in gaming use cases, consumer interest in these form factors softened throughout 2025. In contrast, smart glasses without displays already account for the majority of XR shipments, reflecting strong demand for hands-free audio, cameras, and AI-powered assistance in familiar eyewear designs.
IDC expects this shift to continue as the XR market increasingly prioritizes comfort, fashion compatibility, and persistent AI experiences over fully immersive hardware.
Vendor Landscape: Meta Maintains Lead as Competition Broadens
Meta once again led the global XR market in 2025, capturing 72.2% market share, supported by its partnership with EssilorLuxottica and an expanded smart glasses portfolio. In addition to refreshed Ray-Ban Meta models, the company introduced its first Oakley-branded smart glasses, marking Meta’s entry into performance eyewear.
Despite its overall leadership, Meta’s Quest VR headset shipments declined 42.3% year over year, reflecting early‑year supply chain challenges and waning demand outside core gaming audiences.
Xiaomi ranked second with 4.2% share, driven largely by shipments in China. Xiaomi currently offers two smart glasses models, one focused on audio-first use cases and another that integrates a camera alongside multimodal AI features. XREAL followed in third place with 2.3% share, anchored by its growing lineup of display glasses tailored to gamers and media consumption.
RayNeo captured fourth place, benefiting from expanding U.S. presence and aggressive value-oriented pricing. ByteDance and Viture tied for fifth place at 1.5% share each, though their trajectories differed significantly. ByteDance shipments declined 30.5% in 2025, while Viture achieved 94.9% shipment growth, fueled by expanded retail distribution, increased channel visibility, and a fully refreshed product portfolio spanning multiple price points.
XR Market Outlook: From Headsets to Glasses
Looking ahead, 2026 is expected to be a transition year for the XR market as momentum continues to shift from traditional headsets toward glasses. IDC expects glasses with displays to gain meaningful traction by 2027, ultimately surpassing VR and MR headsets in overall shipment volume.
IDC forecasts global XR device shipments will grow 33.5% in 2026, with the vast majority of growth coming from smart glasses without displays. From 2026 through 2030, the XR market is expected to grow at a compound annual growth rate (CAGR) of 26.5%, led by glasses, while headsets continue to focus on narrower, more specialized use cases.
| YEAR | 2024 | 2025 |
| Meta | 71.8% | 72.2% |
| Xiaomi | 0.7% | 4.2% |
| XREAL | 2.4% | 2.3% |
| RayNeo | 1.2% | 2.2% |
| ByteDance | 3.1% | 1.5% |
| Viture | 1.1% | 1.5% |
| Others | 19.7% | 16.2% |
| Total | 100.0% | 100.0% |
