Smart glasses are now most of the XR market. The latest shipment data shows how fast headsets lost ground

The device most people picture when they hear “virtual reality” is a headset that covers the eyes. The market has moved on. In the second quarter of 2026, glasses accounted for nearly 85% of the extended reality devices shipped worldwide, according to the research firm IDC, while headsets fell to 15.4% of units. A year earlier, headsets made up 27.1%.

The category IDC tracks, often shortened to XR, includes virtual reality headsets, mixed reality headsets that blend the real world with digital content, and a growing range of glasses: some with cameras, speakers and voice assistants but no display, and some with small displays in the lens. The shift toward glasses is the most significant change in the industry since consumer VR headsets arrived a decade ago.

What the latest numbers show

IDC reported that combined shipments of XR headsets and glasses grew 35.3% year over year in the second quarter. That is strong growth, but a sharp slowdown from the 130.2% increase IDC recorded in the first quarter. IDC’s Jitesh Ubrani attributed the slowdown to a higher comparison base from a year earlier and to gaps in product cycles, rather than to falling interest.

The share figures tell the larger story. With glasses near 85% of units, the headset is now the minority product in its own category. Coverage of IDC’s report by the XR news site MIXED put second-quarter VR and mixed reality headset shipments at about 548,000 units, down 23.3% from a year earlier. A separate tracker, Counterpoint Research, reported that global VR headset shipments fell 18% year over year and 16% from the prior quarter. The two firms measure the market differently, so their figures are not directly comparable, but they point in the same direction.

One company dominates

IDC’s vendor ranking shows how concentrated the market is. Meta held 68.7% of shipments in the quarter. The next four vendors were RayNeo at 3.6%, Alibaba at 2.6%, Xreal at 2.5% and Xiaomi at 2.3%. IDC’s analysis of the quarter emphasized Meta’s push into broader retail distribution for its glasses.

Meta’s lead comes largely from glasses made with EssilorLuxottica, the eyewear company behind the Ray-Ban and Oakley brands. Those glasses look like ordinary frames, take photos and video, play audio and answer questions through an AI assistant. They are cheaper than most headsets, and they do not ask the wearer to shut out the room.

The appearance of Chinese companies such as RayNeo, Alibaba and Xiaomi in the top five reflects a fast-growing market for glasses in China, where several technology companies have launched AI-assistant glasses of their own.

Why glasses are winning

Market data shows what is selling, not why. But the products themselves suggest several reasons, which analysts have raised repeatedly:

• Price. Camera and audio glasses sell for a few hundred dollars, comparable to a pair of premium sunglasses, while mixed reality headsets often cost far more.
• Social acceptability. Glasses can be worn on the street. A headset is usually used at home.
• A clear use. Hands-free photos, calls, music and voice questions are simple to explain. Many VR uses require the buyer to imagine a new habit.
• AI assistants. Voice-driven assistants give glasses a purpose that does not depend on a display at all.

Where the forecast goes

IDC expects the overall XR market to keep growing. In its forecasts, IDC projected unit growth of 26.3% for 2026, rising to 40.5% in 2027, as more glasses with displays reach the market. In an earlier forecast based on first-quarter data, IDC projected about 13.6 million display-less smart glasses for full-year 2026, with mixed reality headsets at about 3.2 million units and optical see-through display glasses at about 3 million. Those figures measure different product groups and should not be added together or compared directly with the growth rates.

For headsets, the near-term outlook is weaker. Industry coverage has reported forecasts of steep declines for VR-only devices.

What it means for businesses and developers

• Design for audio and voice first. If most devices in the category have no display, experiences built only for a headset reach a shrinking share of users.
• Treat displays as the next platform. Glasses with small in-lens displays are where analysts expect growth in 2027. Interfaces that work in a glance, such as navigation, notifications and translation, fit that form.
• Expect one platform to set the rules. With one company holding more than two-thirds of shipments, its software store, policies and developer tools will shape what is possible for everyone else.
• Do not write off headsets. Training, design review, entertainment and gaming still depend on full immersion, and those buyers tend to spend more per device.

What to watch next

The next data point will reflect a busy product season. Meta used its Connect 2026 conference to add a camera-free audio model below its camera glasses and to preview lightweight VR glasses for spring 2027, which our separate explainer covers in detail. Whether a cheaper, camera-free option widens the glasses audience, and whether competitors from China gain share outside their home market, are the two questions the next few quarters of shipment data should answer.

The bigger picture

The XR market has gone through several cycles of hype since consumer VR headsets launched in the mid-2010s. The current one is different in one important way: the best-selling devices are not trying to replace the world in front of the wearer. They add a camera, a speaker and an assistant to something people already wear.

IDC’s third-quarter figures, covering July through September, will show whether the second-quarter slowdown was a pause or a turning point.