This should be good news for Apple’s upcoming smart glasses: after a sharp contraction in 2025, near-eye display market revenue is forecast to reach $675 million in 2026, up 12% year-over-year (YoY), according to Omdia’s latest research.
The report also projects that near-eye display shipments will reach 14.53 million units in 2026, representing a 16% YoY increase, as rapid growth in AR glasses partially offsets continued weakness in the VR segment, where market sentiment remains subdued.
“Since 2025, the XR industry has undergone a notable strategic shift,” said Valerie Li, Principal Analyst at Omdia. “Major technology companies including Meta, Apple, Samsung, and Huawei have adjusted their product roadmaps, delaying or scaling back VR headset launches in favor of lightweight AI smart glasses and AR glasses.”
AR glasses support market recovery
With new product launches from RayNeo, Alibaba, XREAL, and VITURE, AR glasses segment is expected to emerge as the fastest-growing application within the near-eye display market in 2026. Omdia forecasts AR display shipments to reach 4.1 million units, representing 154% YoY growth.
Market revenue is projected to increase by 152% year-on-year to $156 million. This growth reflects the accelerated development of AR glasses, supported by rising industry investment and expanding ecosystem support, according to Omdia.
About Apple Glasses
Apple’s smart glasses — likely to be dubbed “Apple Glasses” — are expected to be unveiled late this year or in early 2027 with a ship date in spring or summer of next year. In an April “Power On Newsletter, Bloomberg‘s Mark Gurman said Apple is testing four different types of frames for its upcoming smart glasses:
° A large rectangular frame, reminiscent of Ray-Ban Wayfarers;
° A slimmer rectangular design;
° Larger oval or circular frames;
° A smaller, more refined oval or circular option
The body of the “Apple Glasses” will purportedly be made with acetate, one of the first synthetic fibers used in eyeglass frames, photographic films, and synthetic fabric. Gurman said that Apple is exploring a variety of finishes, including black, ocean blue and light brown. He says that the front cameras on the glasses will be arranged in an oval pattern, surrounded by indicator lights.
You can read a found-up of more rumors about the smart glasses here.
VR headsets face hardware and ecosystem challenges
However, its’s not very good news for the Vision Pro. After consecutive declines in 2025 and 2026, the VR display market is expected to remain under pressure, with any subsequent recovery likely to be gradual rather than immediate, according to Omdia.
Compared with the rapidly expanding AI smart glasses and AR glasses segments, VR headsets continue to face structural challenges, including limited major product refreshes, form-factor constraints associated with bulky designs and high-power consumption, limited suitability for all-day wear, and a content ecosystem that has yet to deliver compelling mass-market use cases, Omdia says.
The research group adds that industry investment and consumer attention are also shifting toward AI-enabled eyewear and lightweight AR devices. Consequently, VR display shipments are expected to decline by 4% YoY to 10.5 million units in 2026, while market revenue is projected to decrease by 4% YoY to $518.7 million.
The future of the Apple Vision Pro seems uncertain. Some reports claim work on it has stopped completely. Gurman said we won’t see a new version of the spatial computer for at least two years. He said Apple continues to develop new technologies and materials with the goal of eventually producing a less expensive and less heavy version of the Vision Pro. However, there’s no active development on the device, and the rumored “Vision Air” is no longer being worked on, Gurman added.
At one point Apple was reportedly working on a version of the spatial computer that would be 40% lighter and more than 50% cheaper. In October 2025 Bloomberg said the project had been canceled as Apple was moving the resources allotted to it to the company’s smart glasses product.
However, I still have hope that the Vision Pro has as future. In a Tom’s Guide’s interview published last month, John Ternus, the incoming Apple CEO, was asked about how he views Vision Pro and the spatial computing category overall.
Here’s what he said: I think we’re still very much in the early innings of spatial computing. We are super excited about it. The Vision Pro is an extraordinary product. As Joz said, it’s like we reached into the future and pulled it into the present. And people are continuing to find exciting new use cases for it. There’s a lot of compelling stuff in enterprise, in medicine, in other things, and that’s going to continue to grow. It’s fun, we’re at the beginning of the journey.
I hope you’ll help support Apple World Today by becoming a patron. Almost all our income is from Patreon support and sponsored posts. Patreon pricing ranges from $2 to $10 a month. Thanks in advance for your support.
