Near-eye display market to recover in 2026 as AR smart glasses offset VR slump
By
Kyriacos Nicolaou
Summary
The near-eye display market is projected to recover in 2026, with revenue reaching $675 million (12% YoY growth) and shipments hitting 14.53 million units (16% rise), driven primarily by growth in augmented reality (AR) smart glasses. This AR expansion is offsetting continued weakness in the virtual reality (VR) segment, where market sentiment remains subdued. The analysis from Omdia highlights a strategic shift among tech giants from VR headsets to AI-powered smart glasses.
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Key quotes
· 3 pulledThe near-eye display market is on track for a recovery in 2026, with revenue projected to climb to $675 million, representing a 12 per cent year-on-year increase following a sharp contraction during the previous year.
Shipments are expected to reach 14.53 million units, a 16 per cent rise driven largely by rapid expansion in the augmented reality sector.
This growth in AR glasses is helping to offset continued weakness in the virtual reality segment, where market sentiment remains notably subdued.
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