Global shipments for augmented and virtual reality (AR/VR) headsets are expected to grow 41.4% in 2025, powered by more affordable devices and addition of artificial intelligence features, research firm IDC said Monday.

WHY IT'S IMPORTANT

Worldwide shipments of AR and VR headsets fell 28.1% year-over-year to 1.1 million units in the second quarter, due to elevated prices and a weak economy prompting customers to rein in expenses, IDC said.

The market is expected to expand to 22.9 million in 2028 from an estimated 6.7 million units this year, IDC said.

KEY QUOTES

"We're seeing a slew of new startups and next-generation products from established brands targeting the 'smart glasses' space," said Jitesh Ubrani, research manager, Worldwide Mobile Device Trackers at IDC.

"What's different this time around is the inclusion of AI along with thinner and lighter designs catering to consumers."

CONTEXT

In October last year, Meta Platforms launched its VR headsets called 'smart glasses' made with EssilorLuxottica's Ray-Ban. The company said in July the latest version was a bigger hit than expected.

Meta is expected to launch a cheaper version of its Quest 3, called the Quest 3S, according to Bloomberg News reports.