In a significant move that mirrors Meta’s recent ventures, ByteDance is reportedly stepping into the mixed reality arena with plans for innovative goggle-like devices. According to a report from The Information, this shift reflects a growing consumer preference for lighter, more comfortable wearables that can seamlessly blend digital images with the real world, marking a departure from the heavier headsets currently dominating the market. This development comes on the heels of Meta’s own transition from traditional headsets to a more streamlined goggle design, known as Phoenix.

The latest IDC report reveals a significant rebound in the AR/VR headset market, with a remarkable year-on-year growth of 18.1%. Leading this resurgence is Meta, capturing a staggering 50.8% market share. This shift towards immersive experiences is not just a trend; it’s a clear signal that consumers are gravitating towards innovative designs and enhanced user experiences. As the market evolves, mixed reality (MR) and extended reality (ER) are poised to drive the next wave of growth, especially with advancements in AI and Android XR platforms.

The AR/VR headset market is experiencing a remarkable resurgence, with an impressive 18.1% year-over-year growth as of Q1 2025. This surge is primarily driven by Meta’s dominance, which now holds a commanding 50.8% market share, alongside a wave of innovation in mixed and extended reality (MR and ER) technologies. As consumer preferences shift towards immersive and multifunctional experiences, the demand for advanced headsets is set to redefine the landscape of virtual and augmented reality.

In a surprising turn of events, Meta has partnered with Anduril Industries to develop augmented and virtual reality devices for the military. This collaboration marks a significant shift for Meta, which has struggled to monetize its extended reality (XR) initiatives since rebranding from Facebook. With the U.S. military’s budget exceeding $1 trillion this year, this partnership could potentially provide the financial boost Meta desperately needs. The goal of this alliance is to leverage Anduril’s Lattice platform, a sophisticated command-and-control system that utilizes AI to deliver real-time battlefield intelligence through AR and VR interfaces.