Intelligent eyewear market sees opportunities

In keeping with several recent analyses of its type, a study from Counterpoint Research has revealed strong augmented reality (AR) and smart glasses markets, with optimism for their future growth as ecosystem development continues to accelerate.

However, rising memory costs are beginning to emerge as a significant headwind for the extended reality (XR) and smart glasses industry in 2026.

According to Counterpoint’s latest XR 360 Research Service, global intelligent eyewear shipments, including virtual reality (VR), AR and smart glasses, grew by 83% year on year in the first quarter of 2026. Yet there were variable results among the key product categories. The VR segment declined by 17% on an annual basis, while the AR glasses and display-less smart glasses market surged by 136% year on year and 210% year on year, respectively.

Attributing reasons for the growth, the analyst observed that in the first quarter of 2026, the market was fuelled by the accelerating adoption of AR and smart glasses. In the AR glasses segment, the more mature birdbath/flat‑prism-based models continued to dominate, despite a drop in market share, with a 58% share in the first quarter, down from 82% last year, while demand for waveguide‑based AR glasses increased to 42% from 18%.

By contrast, the declining VR segment was said to have continued to face weak consumer demand, an ageing product cycle, limited new product introductions and more conservative investment from leading suppliers.

Looking at the companies that were defining the market, Counterpoint named the leaders as RayNeo, Viture and Xreal. RayNeo maintained its dominance in the first quarter with a 41% share, supported by an increasingly diversified product portfolio and broad market presence. Viture was said to have emerged as the dark horse, surging by 281% year on year to capture a 34% share, fuelled by aggressive international expansion and continued investment in channel development. The company also topped AR glasses shipments in markets outside China during the quarter.

While Xreal’s growth was found to have moderated in the first quarter of 2026, Counterpoint said it remained optimistic about its longer-term prospects as the company continues to broaden its product portfolio, strengthen ecosystem partnerships, and advance its market position as the first consumer AR glasses manufacturer to file for an initial public offering.

The study also found that the waveguide-based AR glasses market is becoming increasingly diverse as more manufacturers enter the segment, combining AI capabilities with see-through displays to enable richer and more intuitive interactions with AI assistants. Rokid ranked first globally with its Rokid Glasses, benefiting from continued overseas expansion and stronger offline channel penetration during the quarter.

Meta captured a 38% share, though its growth was found to have remained constrained by limited production yields of key components for the Ray-Ban Meta Display and by the product’s restricted availability in the US market. Even Realities and Alibaba followed as notable challengers, securing 9% and 5% market share, respectively, in the first quarter of 2026.

Looking ahead, Counterpoint said Alibaba appears well positioned to strengthen its presence in the segment, particularly in China, as it consolidates its smart glasses portfolio under the unified Qwen brand and enhances its software experience through deeper service integration and more “proactive” AI capabilities.

In the display-less smart glasses segment, the study said strong growth momentum persisted, even as the broader consumer electronics industry faced headwinds from surging component prices. Meta’s global dominance continued, with its market share rising to nearly 84% in the first quarter of 2026 from 82% in the preceding quarter. Outside of Meta, other players remain relatively small on a global scale, although competitive dynamics vary by country.