According to CINNO Research's chief analyst Zhou Hua, China's consumer AR/VR glasses market sales reached 169,000 units in Q3 2025, marking a 17% quarter-on-quarter and 57% year-on-year growth. This expansion was primarily driven by the continuous launch of new AR devices, cost optimization in upstream supply chains, and deeper integration of AI technologies.

**Market Sales Surge, AR Devices Shine** The domestic XR market totaled 169,000 units in Q3 2025, with consumer AR devices emerging as the key growth driver, recording sales of 130,000 units—a 109% YoY increase. Brands like TCL RayNeo and Rokid led the AR segment with new product releases, while INMO, Meta, and Alibaba's Quark also contributed to the momentum. Meanwhile, consumer VR device sales grew 8% QoQ to 40,000 units, supported by Meta’s low-price strategy sustaining modest growth.

**Technological Breakthroughs: Display & Optics Lead Innovation** Fast LCD screens dominated 91% of the mid-to-low-end VR market, with BOE securing a 43% share. Although Micro OLED faced cost and ecosystem challenges, its 73% adoption in AR devices solidified its position in high-end split-headset displays. Meta Display’s LCoS technology gained traction, while monochrome Micro LED saw a 149% QoQ surge in AR glasses, propelled by Rokid and INMO. Pancake optics retained a 49% market share despite short-term contraction, with Goertek’s new VR Pancake solutions addressing demand for lightweight, high-quality displays.

**AR Brands: RayNeo Leads, Rokid Rises; VR Market Narrows Gap** TCL RayNeo maintained its AR market leadership, reinforced by the October launch of AIR 4 and AIR 4 Pro featuring HDR and AI 3D video. Rokid jumped to second place with its new Rokid Glasses, while XREAL expanded its share in the ¥3,000–4,000 segment through enhanced FOV and processing power. In VR, Pico remained top-ranked, though Meta’s Quest 3S low-price strategy narrowed the gap.

**Active Investments: Upstream & AI+XR Ecosystem in Focus** Global AR/VR funding in Q3 2025 totaled 33 deals (excluding 6 undisclosed), worth approximately ¥5.5 billion, with 18 domestic transactions. Upstream hardware firms like JBD and Yanshan Tech focused on Micro LED, while optical innovators such as SeeYA and NED+ prioritized R&D. Companies like VITURE and INMO leveraged AI to integrate hardware-software ecosystems, reflecting capital’s strategic bets on AR/VR’s future.

As technology matures and costs decline, AR/VR adoption will expand across consumer and industrial applications, accelerating digital transformation with immersive, personalized experiences. Deeper AI integration will further enhance interactive intelligence and scenario adaptability, ushering in a new era of smart interaction.