LOS ANGELES, January 15, 2025: ARtillery Intelligence has released a new report that projects XR revenue to grow from $24.8 billion in 2024 to $57.6 billion in 2029, an 18.38 percent compound annual growth rate. Entitled XR Global Revenue Forecast, 2024-2029, the report examines XR revenue totals and subdivisions – including mobile AR, headworn AR, and VR. Each of these segments is given its own dedicated forecast throughout the year, with an aggregate view provided in this report.

Among these categories, VR leads ($13.5 billion in 2025), followed by mobile AR ($10.7 billion) and headworn AR ($4.6 billion). These revenue totals include hardware (e.g., headsets) and software (e.g., apps, experiences, enabling tech). XR revenue can also be segmented by enterprise ($22.25 billion in 2025) and consumer spending ($6.57 billion). Though enterprise leads today, consumer XR will catch up and surpass it in spending share, as it has greater momentum today and an inherently larger total addressable market. Meanwhile, enterprise XR’s lead is driven by experiences that boost productivity through line-of-sight guidance or immersive training. Consumer XR is increasingly driven by the market-validated demand for low-immersion (a.k.a., “lite AR”) AI-driven smart glasses. 

As for unit sales, all categories of XR headsets are collectively projected to grow from 6.32 million in 2024 to 24.6 million in 2029. This steep growth curve is boosted by today’s smart glasses momentum, as well as a projected inflection in 2027. The latter will be driven by the first full year of market availability for several smart glasses in development from Apple, Meta, Snap, Samsung, and other device manufacturers that build hardware around the emerging Android XR operating system.

“Android XR could be a meaningful accelerant for the broader XR industry as it lowers barriers to entry for device manufacturers, and allows them to focus on what they do best while it handles the software and UX fundamentals,” said Mike Boland, Chief Analyst of ARtillery Intelligence. “In that way, Android XR could do for spatial computing what Android did for mobile devices over the past 15 years.”

As for segments with the most long-term potential, non-display smart glasses, such as Meta Ray Ban Smartglasses (RBMS), are built around AI-fueled information delivery as opposed to visuals. RBMS’ commercial success – to the tune of 5 million estimated units sold to date – validates this approach while demonstrating AR’s continued convergence with AI. Though this isn’t AR’s endgame in terms of the technology’s potential UX interactivity and dimensionality, it meets today’s consumer demand levels for the right balance of style and technology on one’s face.

“Smart glasses are getting smarter, which represents a key evolutionary step toward all-day AR glasses that deliver both stylistic viability and graphical richness,” said Boland. “That combination is challenged today, so the former will come first while we evolve towards the latter – both culturally and technologically. Meanwhile, we’ll see near-term development of dimensional AR, such as Snap’s anticipated consumer spectacles this year. Both ends of that spectrum have strategic merit as XR formats diverge and diversify to meet purpose-built and use-case-dependent endpoints.”

Report Availability

XR Global Revenue Forecast, 2024-2029 is available to ARtillery PRO subscribers, and more can be previewed here. This report follows ARtillery Intelligence’s separate examination of mobile AR, headworn AR, and VR revenue.

About ARtillery Intelligence

ARtillery Intelligence chronicles the evolution of spatial computing. Through writings and multimedia, it provides deep and analytical views into the industry’s biggest players, opportunities, and strategies. Products include the AR Insider publication and the ARtillery PRO research subscription, which together engender a circular flow of knowledge. Research includes monthly narrative reports, market-sizing forecasts, original consumer survey data, and multimedia – all housed in a robust intelligence vault. Learn more here.

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