Demand for VR and AR headsets will increase based on AI, lower costs, IDC says By Reuters

(Reuters) – Global shipments of augmented and virtual reality (AR/VR) headsets are expected to grow 41.4% in 2025, driven by lower-cost devices and the addition of artificial intelligence features, research firm IDC reported on Monday.

WHY IT IS IMPORTANT

According to IDC, worldwide shipments of AR and VR headsets fell 28.1% year over year to 1.1 million units in the second quarter, as higher prices and a weak economy forced customers to curb spending.

According to IDC, the market is expected to grow from an estimated 6.7 million units this year to 22.9 million in 2028.

IMPORTANT QUOTES

“We are seeing a lot of new startups and next-generation products from established brands targeting the smart glasses market,” said Jitesh Ubrani, research manager of Worldwide Mobile Device Trackers at IDC.

“What’s different this time around is the addition of AI and the thinner and lighter designs that meet consumer needs.”

CONTEXT

Last October, Meta Platforms (NASDAQ: ) launched its VR headsets called “smart glasses,” made with EssilorLuxottica’s Ray-Ban. The company said in July that the latest version was a bigger hit than expected.

According to Bloomberg News, Meta is expected to launch a lower-cost version of its Quest 3, called the Quest 3S.