The global XR device market is set for significant growth in 2025, with shipments — including headsets and glasses — expected to rise 41.6 percent, reaching 14.5 million units, IDC report said.
Strong consumer acceptance of XR glasses and continued enthusiasm for mixed reality (MR) and big-screen gaming experiences are key factors driving market expansion.
Shifting Dynamics: XR Glasses vs MR/VR Headsets
While overall XR device growth is strong, IDC forecasts a 42.8 percent decline in mixed and virtual reality headset shipments in 2025. This segment is expected to rebound in 2026 with the launch of new devices but will likely remain concentrated among gamers and enterprise users focused on design, training, and collaboration.
In contrast, XR glasses are emerging as the primary growth engine, with projected shipments set to grow at a compound annual growth rate (CAGR) of 29.3 percent from 2025 through 2029.
Market Leaders and Emerging Players
Meta continues to dominate the XR market, holding a 75.7 percent share in Q3 2025 with its Quest and Ray-Ban lineup.
Xiaomi follows with 4.3 percent share, driven by its AI glasses, while XREAL commands 2 percent in the premium segment above $350.
RayNeo and Viture complete the top five with 1.8 percent and 1.3 percent market share, respectively, benefiting from value-oriented and retail expansion strategies.
Forecast and Market Opportunities
The XR market is transitioning toward slimmer, more fashion-forward devices. Success will depend not only on technology but also on design, battery life, and app ecosystems.
Google’s Android XR platform and its hardware partners are expected to introduce new products, increasing competition and potentially challenging Meta’s dominance.
IDC notes that key adoption challenges include battery limitations, privacy concerns, and convincing mainstream consumers of the real-world utility of XR devices.
Jitesh Ubrani, IDC research manager, said: “Convincing someone to wear XR glasses all day is far more challenging than other wearables. Brands that prioritize comfort, style, and app ecosystems will lead future growth.”
Ramon T. Llamas, research director, said: “The XR market could follow a path similar to smartphones, with multiple platforms innovating rapidly, resulting in faster development and richer experiences for end-users.”
Outlook
IDC forecasts the XR ecosystem will see accelerated innovation, expanding beyond gaming to enterprise applications, immersive collaboration, and everyday wearable technology, shaping the next era of consumer and enterprise computing.
Baburajan Kizhakedath
