Worldwide shipments of augmented and virtual reality (AR/VR) headsets combined with display-less smart glasses are expected to grow 39.2 per cent in 2025, with volumes reaching 14.3 million units, according to new data from the International Data Corporation (IDC).

The market will be driven by smart glasses such as Meta’s Ray-Bans, with the category growing 247.5 per cent during the year thanks to new product launches from Meta as well as numerous other companies joining the race to put artificial intelligence (AI) on consumers’ faces.

Meta held a huge lead in hardware, capturing 60.6 per cent of the combined AR/VR and display-less smart glasses market during the second quarter of 2025.

Not only has the company found success in smart glasses thanks to the relatively lightweight form factor, but it also continues to lead in mixed reality as both categories are ultimately expected to lay the groundwork for true augmented reality glasses later down the road.

Following Meta was Xiaomi with 7.7 per cent market share, which was largely driven by the newly launched AI Glasses as well as the slightly older Mija Smart Glasses.

However, unlike the global presence of other vendors, Xiaomi’s glasses were almost exclusively contained within China.

XREAL with 4.1 per cent, RayNeo with 2.7 per cent, and Huawei with 2.6 per cent rounded out the top five.

“It wasn’t long ago that consumers were introduced to AI on glasses and in recent quarters brands have also begun to include displays, enabling new use cases,” said Jitesh Ubrani, research manager for IDC’s Worldwide Mobile Device Trackers.

“However, consumer awareness and product availability of AI glasses with display remains limited, this will change as Meta, Google, and others launch products in the next 18 months,” he added.

“Further pushing things forward will be the expansion of distribution channels as eyewear brands, opticians, and consumer electronics retailers ramp up availability and awareness,” Ubrani said.

“Along with growing product availability, use cases and demographics are expected to shift from the gaming-heavy demand of today to a more mainstream audience, incorporating non-immersive experiences along with productivity, creativity, entertainment, and notification-rich use cases,” he added.

Much of the software and services spending on AR/VR headsets is centred around gaming, with games such as Animal Company, Beat Saber, and Gorilla Tag representing the top-grossing titles during the first half of 2025.

Outside gaming, AI apps are also gaining traction. In terms of hours of use, however, YouTube led the pack.

IDC forecasts spending on apps, services, and related technologies to increase 19.7 per cent in 2025, reaching nearly $12 billion worldwide.

As more brands and channels emerge, IDC forecasts the market will grow substantially, with hardware volumes reaching 43.1 million in 2029.

The associated compound annual growth rate is projected at 31.8 per cent.

Display-less glasses are expected to continue leading the market as they provide a low entry point into on-body AI for consumers.