AR/VR and smart glasses market set for explosive growth

• Meta captures 60.6% share of the global AR/VR and smart glasses market in second quarter of this year.
• IDC believes new demographics will push the sector far beyond its gamer roots, with consumers embracing use cases from entertainment to productivity to richly personalised notifications.

If there’s a tech wave set to make a splash in 2025, it’s surely the world of AR/VR headsets and smart glasses.

Projections from the International Data Corporation (IDC) forecast that global shipments for these combined devices—including display-free smart glasses—are poised for a robust 39.2 per cent leap next year. That’s 14.3 million new units set to land in consumers’ hands, faces, and occasionally, pockets.

Meta’s big lead

In the hardware race, Meta is completely running the show. During the second quarter of 2025, the company captured an eye-popping 60.6 per cent share of the global AR/VR and smart glasses market.

This isn’t just about clunky VR goggles: Meta’s success in lighter, display-less Ray-Ban smart glasses shows that there’s appetite for more subtle, wearable access to AI. Their continued investments in Mixed Reality are seen as laying the groundwork for what could become the first wave of truly mainstream Augmented Reality eyewear.

Trailing behind is Xiaomi, eking out a 7.7 per cent share thanks to its AI Glasses and Mija Smart Glasses, although its reach is mostly confined to China. Other players—XREAL (4.1 per cent), RayNeo (2.7 per cent), and Huawei (2.6 per cent)—fill out the global top five. As more brands dive in, expect the competition and innovation to heat up.

Smart glasses lead the charge

The real rocket fuel for this category in 2025 appears to be smart glasses, spearheaded by Meta’s Ray-Bans. Predictions call for a mind-blowing 247.5 per cent year-on-year surge in this segment alone, as new launches from tech heavyweights and up-and-comers put AI front and centre in our daily lives.

IDC points to an emerging shift: where once an AI assistant living in your glasses was the stuff of science fiction, it’s rapidly becoming everyday tech. The arrival of display-equipped AI glasses from Meta, Google, and others promises to expand use cases further—and distribution channels like eyewear retailers and electronics stores are gearing up to meet the expected demand.

Who’s wearing, and why?

Historically, gaming dominated AR/VR headset use, and titles like Animal Company, Beat Saber, and Gorilla Tag continue to rake in revenue. But the landscape is evolving. While games remain hot sellers, YouTube now leads in hours watched, and AI-driven productivity and lifestyle apps are steadily gaining traction.

As these devices grow more accessible and varied, IDC believes new demographics will push the sector far beyond its gamer roots, with consumers embracing use cases from entertainment to productivity to richly personalised notifications.

It’s not just hardware where the action is. IDC sees software, apps, and service spending for AR/VR jumping by nearly 20 per cent to reach almost $12 billion in 2025. As creators and developers experiment with new experiences—from immersive creativity tools to AI-powered personal assistants—the business case for the category keeps strengthening.

Looking ahead, IDC envisions nothing but growth. By 2029, annual shipments could hit 43.1 million units, riding a compound annual growth rate of 31.8 per cent.

Display-less smart glasses will likely remain the point of entry for many, thanks to their blend of affordability and convenience, though Mixed Reality headsets and smart specs with screens are hot on their heels.

In short: whether for play, productivity, or just staying in the loop, expect to see a lot more wearable tech on faces everywhere over the next five years.