A new report has predicted that the XR industry is set to capture more mainstream audiences in the near future, as tech giants develop new hardware products for the consumer market.
New data from IDC forecasts that spending on XR technologies, services, and apps will increase by nearly 20% in 2025 reaching nearly $12 billion worldwide.
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Interest in smart glasses is expected to grow over the next four years – good news for Meta after the debut of its 2nd generation AI-powered Ray-Ban glasses last week.
Amazon is also looking to enter the consumer AR glasses market as well, with the rumored development of its ‘Jayhawk’ product.
A Changing XR Audience
While gaming is currently the focus of much XR development, that is set to change according to this report.
IDC is forecasting that the development of smart glasses from Meta, Google, and others will further open the door to mainstream consumers. Their products, and their consequent publicity, will generate more awareness about XR tech. Jitesh Ubrani, research manager of IDC’s Worldwide Mobile Device Trackers said:
This will spark a “…shift from the gaming-heavy demand of today to a more mainstream audience”
A move to the mainstream will also be the result of new distribution channels, as more smart glasses appear in opticians, fashionable eyewear shops, and electronics retailers.
These new channels will “ramp up availability and awareness”
Meta’s reported physical store on London’s retail hub Oxford Street is an example of new distribution strategy, as the company brings its glasses and headsets to mainstream footfall.
Hints of this industry shift can already be seen in usage data. Popular video platform YouTube tops the charts in terms of screen time among AR / VR headsets, leading the way ahead of gaming apps, IDC reports.
Enabling Greater Productivity
New use cases will emerge as the industry shifts away from gaming, Jitesh notes.
These include “non-immersive experiences along with productivity, creativity, entertainment…”
So what does a ‘productivity’ use case look like?
Amazon’s delivery drivers are set to harness the power of smart glasses to speed up operations. These internal AR glasses, codenamed ‘Amelia’, will provide navigational support, an integrated chatbot, and an outward facing camera.
In his keynote address last week at Meta Connect 2025, Mark Zuckerberg highlighted how prompt-based AI will speed up the process of creating virtual spaces. This could help enterprises to quickly generate immersive training areas in the metaverse.
For example, an NHS Foundation Trust developed an award-winning VR learning program for nurses, aiming to boost patient safety and student competency.
Display-less Glasses Dominating the Sector
Looking ahead to 2029, IDC forecasts that display-less glasses will continue to be the most popular product within the XR sector. However, smart glasses and mixed reality headsets are expected to capture a greater share of the market with every passing year.
Display-less wearables rely on audio speakers, microphones, and cameras to provide new capabilities. While more limited than their visually focused counterparts, they tend to be more affordable.
These products “provide a low entry point into on-body AI for consumers”, the IDC report explains. This could be valuable advice for enterprises looking to enhance their workforce with wearables, while maintaining a measured and gradual adoption strategy.
What do you think? Is XR technology set to go mainstream, and if not, why not?
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