According to the latest quarterly tracking report from the International Data Corporation (IDC), global smart eyewear shipments in the second quarter climbed 35.3% year-over-year, with audio and camera-equipped glasses serving as the primary growth engines. AR/ER glasses are accelerating their market penetration, while the headset segment undergoes a period of adjustment. International heavyweights continue to steer the industry's direction, with ecosystem development and AI experiences emerging as the new competitive battlegrounds.

Chinese innovator brands are quickening their pace of globalization, leveraging product diversification and channel expansion to strengthen their overseas influence. Meanwhile, the market structure is evolving toward higher-tier intelligence, with application scenarios broadening across the board. Although the Chinese market faces short-term headwinds, the sector's vitality remains undiminished, as technological innovation, ecosystem collaboration, and global expansion inject fresh momentum into future growth.

Global Market Overview

IDC's latest data reveals that global smart eyewear shipments reached 3.547 million units in Q2 2026, a 35.3% increase year-over-year. Within this figure, audio and audio-camera glasses totaled 2.494 million units, up 54%, while AR/ER glasses hit 505,000 units, surging 75.7%. VR/MR headsets, however, declined 23.3% to 548,000 units. For the first half of 2026, cumulative global smart eyewear shipments reached 7.114 million units, representing a robust 70.5% year-over-year growth.

The current expansion is predominantly fueled by eyewear-format products, with the market structure progressively shifting toward more advanced and intelligent solutions. As new product launches and technology integrations unfold in the second half of the year, the industry landscape is poised for further transformation, though sustained demand trends will require ongoing observation.

International Giants Lead with Shifting Priorities

Global leaders continue to set the tone for the smart eyewear industry. Meta maintains its dominant position through audio-based smart glasses and is actively preparing new product launches. Apple's first smart glasses product has entered the final countdown to mass production, signaling a shift in competitive focus from pure hardware volumes to deep integration of ecosystems and AI experiences.

Meta (META.US) continues to hold the leading share in the global smart eyewear market, introducing more cost-effective new products in Q2 to further consolidate its foothold in the mass consumer segment. Display-equipped glasses like Ray-Ban Display remain constrained by yield rates and production capacity, limiting their scale-up, and the company's advantage in this niche is still being established. Within the headset category, the Quest series advances steadily, though overall shipment volumes are expected to remain limited.

Apple (AAPL.US)'s first smart glasses product is now in the final stages before mass production, prompting corresponding adjustments to its headset roadmap, with the next-generation headset potentially facing a significant delay in its release timeline.

Chinese Innovators Accelerate Global Expansion

Chinese tech innovators are expediting their global strategies, distinguishing themselves in display-class eyewear through diversified product portfolios, expanded overseas channels, and deepened localization efforts. Their market shares abroad continue to rise.

Thunderbird is accelerating its product iteration with the launch of the GT series, targeting premium viewing experiences, and the lightweight V4 AI camera glasses. The company will officially debut its iO series of display smart glasses in Q3. This year, its overseas market expansion has quickened, with accelerated offline channel development and a leadership position in the global and Chinese consumer AR&ER glasses market during the first half.

Xreal now generates over 60% of its shipments from overseas markets. Its product lineup continues to diversify across price points and use cases, including the entry-level XBX A01+ and the gaming-focused R1. In Q3, the company will officially unveil Project Aura internationally, rounding out its premium display-class smart glasses portfolio with increasingly comprehensive global coverage.

Other players like Inmo and Viture are also intensifying their overseas efforts. Inmo plans to release a Jackson Wang co-branded edition in Q3 to capture fashion-oriented consumers, while Viture focuses on niche segments, expanding its international retail footprint with steady performance in North America and beyond.

Ecosystem Building and Cross-Industry Collaboration Gain Momentum

Ecosystem development and cross-industry partnerships are accelerating, broadening the application scenarios for smart glasses. Manufacturers are enhancing product value through AI capabilities, content ecosystems, and multi-device synergy.

Qianwen is rapidly scaling in China's domestic market for camera-equipped, AI-centric smart glasses, leveraging deep integration with large language models, e-commerce, and payment ecosystems to secure a leading position. In Q3, it expects synergy with its new Qianwen AI earbuds, further completing its AI hardware ecosystem.

Rokid has begun increasing its overseas shipments and maintains a leading position in the global non-full-color glasses market in Q2. On the ecosystem front, its Open Day 2026 unveiled Yoda OS to strengthen its underlying system, with plans to integrate Tencent's WorkBuddy AI office capabilities later, exploring the deployment of glasses in workplace environments.

China Market Experiences First Contraction

In Q2 2026, China's smart eyewear market shipped 611,000 units, an 8.0% decline year-over-year, marking the market's first negative growth. The downturn is primarily attributed to the audio glasses segment, yet competition remains vibrant as manufacturers continue optimizing their product lines and channel strategies while new entrants keep arriving, preserving the market's momentum.

Audio and Audio-Camera Glasses Segment

China's audio and audio-camera glasses market shipped 332,000 units in Q2, a 35.4% year-over-year decrease. The market structure continues its upgrade, with audio-camera glasses now accounting for 55.3% of shipments, up 81.4% annually, surpassing pure audio models. The quarterly decline stems mainly from leading brands' products reaching the end of their lifecycles, placing pressure on overall shipments, while newly released models have not yet filled the gap effectively. Additionally, audio glasses suffer from pronounced product homogenization and a lack of differentiated innovation, dampening consumers' replacement appetite. Despite promotional campaigns generating some attention, their impact on sales has been limited. In this context, certain new entrants are adopting a wait-and-see approach, slowing their market entry pace. The market's future recovery hinges on the implementation of innovative features and the further release of user demand.

AR/VR Market

China's AR/VR market shipped 279,000 units in Q2 2026, an 85.8% year-over-year surge. The AR&ER glasses market grew 123.0%, propelled by lightweight glasses with AI-centric functions. For the first time, monochrome glasses captured a larger share than full-color models, reaching 51.2%, with brands like Qianwen, Rokid, and Inmo leading the way. Price points span mainstream consumer ranges to accommodate diverse user needs. Additionally, according to monthly tracking data, iFlytek is set to begin shipping in July, which is expected to further reshape the competitive landscape. The industry is exhibiting positive momentum with accelerated technological innovation and diversified application scenarios, as the deep convergence of AI with AR&ER hardware opens up greater possibilities.

VR&MR Headset Market

The headset segment saw shipments decline 34.4% year-over-year in Q2, with the contraction narrowing. As industrial applications expand, headsets are discovering new growth avenues in large-space commercial use, robotic backend data collection, and remote control scenarios, aiding inventory digestion. Pico may release a new headset by year-end, which could significantly influence market dynamics and future directions, with the industry closely watching its potential impact on product scale and ecosystem building. Overall, with new product launches and deeper industrial applications, the headset market is expected to recover and encounter structural growth opportunities.

Future Outlook and Emerging Opportunities

IDC China market analyst Ye Qingqing notes that despite government subsidy policies and promotional support, consumers remain cautious in their purchasing decisions for smart glasses as emerging tech products. Smart glasses serve as a vital interaction gateway integrating terminal ecosystems with AI capabilities, yet their full potential remains unrealized. Only when product experiences, content ecosystems, and practical application scenarios further mature will the industry chain participants and end-user base continue to expand.

Looking ahead to the second half of the year, several key trends are anticipated. First, product line differentiation and innovation acceleration. Manufacturers will diversify their offerings with more combinations addressing color display, weight control, and wearing comfort tailored to various user needs. Lightweight full-color glasses will become a strategic focus, balancing everyday portability with enhanced visual experiences. Some companies will explore multi-functional integrations combining AI, imaging, and health features, driving products from single-function devices toward multi-scenario applications to stimulate replacement demand.

Second, accelerated overseas expansion and deepened globalization. As domestic competition intensifies and growth space becomes temporarily limited, more Chinese manufacturers are accelerating their foreign market strategies. Overseas niche segments remain unsaturated, particularly in areas like AR&ER, where domestic brands have established recognition through technological expertise and cost-performance advantages. Lightweight product launches are expected to unlock further overseas opportunities while reducing direct competition pressure against international giants. Beyond tech innovators, several traditional corporations are actively exploring or monitoring overseas prospects, positioning globalization as an industry-wide theme.

Third, continued ecosystem development and scenario implementation. Ecosystem refinement and cross-industry collaboration will prove pivotal to the industry's evolution. Manufacturers will strengthen coordination with content, AI, payment, and e-commerce partners, driving smart glasses into diverse scenarios spanning office work, entertainment, health, and education. The deep fusion of large AI models with terminal hardware will elevate product intelligence, sparking a new wave of application innovation.