The global AR and VR headset market grew 18.1% year-over-year last quarter, according to a June 18 report from IDC, with Meta holding a dominant 50.8% share. But the real momentum came from rising players like XREAL and Viture—part of a growing shift toward lightweight, optical-see-through, or OST, smart glasses.
The market is definitely shifting toward more immersive experiences, said Jitesh Ubrani, research manager for IDC’s Worldwide Mobile Device Trackers, in the IDC report.
”The next wave of growth will be driven by mixed and extended reality, especially as AI and Android XR platforms mature,” Ubrani said.
Among the top five vendors, Viture saw explosive 268% growth, while XREAL took second place overall. Three OST-focused vendors—XREAL, Viture, and TCL—now hold a combined 22.5% share, marking a notable shift away from traditional VR.
Sony and Apple—usually strong players in the AR and VR space—were absent from the top rankings this quarter.
Looking forward, IDC predicts a sharp decline in pure VR, with mixed reality and extended reality expected to lead future growth. MR shipments are projected to grow from 3.3 million in 2025 to over 15 million by 2029. ER devices, including smart glasses, will see strong adoption in both consumer and enterprise markets.
While shipments are expected to dip 12% in 2025 due to delays and tariffs, IDC predicts a strong rebound in 2026—eventually surpassing pre-pandemic peaks. From 2025 to 2029, the AR/VR market is expected to grow at a 38.6% CAGR.
