Worldwide shipments of augmented reality (AR) and virtual reality (VR) headsets —combined with display-less smart glasses — are set to jump 39.2 percent in 2025, reaching 14.3 million units, according to the latest IDC Worldwide Quarterly Augmented and Virtual Reality Headset Tracker.
The growth will be driven primarily by AI-powered smart glasses, such as Meta’s Ray-Ban lineup, with the display-less category alone forecast to expand an impressive 247.5 percent year over year as more tech players enter the market, IDC report said.
Meta Maintains Hardware Leadership
Meta captured a commanding 60.6 percent market share in the combined AR/VR and display-less smart glasses segment during Q2 2025. Its success stems from a lightweight form factor and leadership in mixed reality (MR), which analysts expect to pave the way for true AR glasses.
Xiaomi followed with 7.7 percent, thanks to its new AI Glasses and Mija Smart Glasses—although sales are largely concentrated in China.
XREAL (4.1 percent), RayNeo (2.7 percent), and Huawei (2.6 percent) completed the global top five.
Recent initiatives
Meta
Meta is preparing to launch new smart glasses codenamed Hypernova (or possibly launching under the name Celeste) at its Meta Connect 2025 event. These will be its first consumer glasses with built-in display(s). The glasses are expected to include features like notifications, navigation overlays, voice interaction via Meta AI, and improved gesture control via a wristband/bracelet.
Meta is also updating its existing Ray-Ban and Oakley collaborations: newer models will have better cameras, improved battery life, and more AI-capabilities. The Oakley Meta HSTN line was recently introduced with enhancements.
Meta is releasing software features: e.g. live translation, Shazam integration, live AI assistant, etc., for its current Ray-Ban smart glasses.
Xiaomi
Xiaomi has introduced its first AI-powered smart glasses (sometimes called “Xiaomi AI Glasses”) that rival Meta’s Ray-Ban line. Key specs: a 12 MP ultra-wide camera, support for first-person video recording, and use of Xiaomi’s AR-/AI-assistant (XiaoAI) for voice commands, object recognition, QR-scanning, etc. Battery life is strong: up to ~8.6 hours of general use, more than double what many current smart glasses offer, and fast charging (~45 minutes full) is included.
Xiaomi also launched MiJia Smart Audio Glasses 2: lighter frame, better design, refined comfort, “audio-first” smart glasses (focusing more on music, calls, voice assistant), with multiple improvements.
XREAL
XREAL has released XREAL One Pro, which is among its most advanced consumer AR glasses. General availability started July 1, 2025. Key features: a wide field-of-view (FOV) of 57°, flat-prism lenses that are thinner (vs older lens types) to reduce bulk and ambient light interference. They also have a modular camera accessory (XREAL Eye) that adds 6 degrees of freedom (6DoF) spatial tracking / anchoring, enabling more immersive virtual screen experiences. The company is expanding distribution: available via Amazon, BestBuy, its own store.
RayNeo (TCL RayNeo)
RayNeo (from TCL) has pushed forward its display tech: the RayNeo X3 Pro AR glasses use full-color Micro-LED waveguide displays. Brightness is very high (5,000 nits peak), though the field-of-view is more modest (~25°) compared to some larger FOV devices. The models support dual speakers and run on Snapdragon AR1 Gen1 chip. Pricewise, the X3 Pro is positioned as premium and currently available (in China) at about ¥8,999 (~US$1,250), though with subsidies it comes lower in some cases.
Huawei
Huawei has focused more on audio-centric smart glasses in many of its recent launches, rather than full AR with displays. Its Eyewear 2 Titanium Edition includes gesture controls, voice commands, and simultaneous translation among its new AI-features.
Design variations have been introduced (round and square frames, titanium frames), with better comfort, aesthetics, and build quality. Battery life is decent: for listening and calling: e.g. 11 hours listening, 9 hours calling on some models. Fast-charging also supported.
AI Integration and New Use Cases
“Consumers were only recently introduced to AI on glasses,” said Jitesh Ubrani, IDC research manager. “Brands have begun to add displays, unlocking new applications. Consumer awareness and availability will rise as Meta, Google, and others launch products within the next 18 months.”
IDC expects distribution through eyewear brands, opticians, and electronics retailers to broaden, helping smart glasses transition from gaming-centric demand to mainstream use cases such as productivity, creativity, entertainment, and notification-rich experiences.
AR/VR Content Spending to Reach $12 Billion
Gaming remains the top revenue driver for AR/VR software and services, with hits like Animal Company, Beat Saber, and Gorilla Tag leading global downloads in early 2025. YouTube dominates in hours of use, while AI-powered apps are quickly gaining traction. IDC projects 19.7 percent growth in app and service spending to nearly $12 billion worldwide in 2025.
Strong Long-Term Outlook
IDC forecasts hardware volumes to soar to 43.1 million units by 2029, representing a 31.8 percent compound annual growth rate (CAGR). Display-less smart glasses are expected to remain the most popular entry point for consumers exploring on-body AI, while MR headsets and smart glasses with integrated displays will also capture significant market share.
Baburajan Kizhakedath
