According to Omdia, demand for VR headsets is currently in a downturn, while AR smart glasses are becoming the new focus in the tech industry. This category is emerging as a new growth point in device retail and subscription services. Service providers can offer XR as a value-added service, bundling VR headsets with gaming platforms to create consumer-oriented solutions. Extended Reality (XR), encompassing Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR) technologies, presents new opportunities for value-added mobile and fixed-line platforms in the telecommunications sector. Services requiring new terminals are expected to drive an increase in bandwidth demand and generate a need for low-latency connections and edge computing. The vision for XR includes spatial computing and digital environments—using AR, VR, and MR technologies to construct computer interaction interfaces that naturally integrate the physical and virtual worlds.

The release of the Apple Vision Pro VR headset has pushed spatial computing into the mainstream, as Apple (AAPL.US) aims to differentiate itself from Meta's (META.US) metaverse vision. The adoption of XR services has been limited by device functionality and cost factors. VR headset developers need to strike a balance between comfort, image quality, and cost to create devices that users enjoy. Despite the Apple Vision Pro's performance nearing the technical requirements for most applications and its capability for prolonged use, its high price currently restricts the primary user group to developers. VR headset demand continues to face challenges, and market response for the Meta Quest 3S has not met expectations. At present, VR primarily revolves around gaming platforms, with the gaming industry experiencing growth stagnation in the post-pandemic era. Omdia predicts a compound annual growth rate (CAGR) of 5% for the industry’s annual revenues by 2029. Whether in VR gaming or other application scenarios, these fields remain niche.

Between 2016 and 2029, global sales of VR headsets categorized by type show AR smart glasses becoming a new focus. With the integration of Artificial Intelligence (AI) technology, these devices are pioneering a new track for connected wearables. Meta's smart glasses, developed in partnership with Ray-Ban, have sold 2 million units, with production capacity set to increase to 10 million units this year. These AI smart glasses, which currently lack heads-up display functionality, can be seen as precursors to the AR glasses prototypes being developed by Google and Meta. Google has announced partnerships with Samsung, and the fashion eyewear brands Warby Parker and Gentle Monster to advance AR glasses development. XREAL will also utilize the Android XR system in AR glasses through its "Project Aura" strategic collaboration. By leveraging audiovisual inputs from the wearer’s environment to interact with intelligent agents and render AR objects in real-time, these devices are expected to create incremental demand for wireless services.

Investment strategies in the XR sector are still in a phase of dynamic adjustment. Meta's Reality Labs is maintaining its investment levels from 2024, but approximately half of the funds in 2025 will shift towards wearable devices (AI and AR smart glasses), leading to a reduction in investments for the metaverse and VR. In comparison, Google is being more proactive by not only launching the Android XR system but also entering the smart glasses market; meanwhile, Microsoft continues to scale back its XR business. Telecommunications operators have collectively shifted away from pursuing the metaverse concept. Notably, South Korea’s SK Telecom has shut down its metaverse platform, ifland, to focus on the AI space. Japan’s NTT retains some domestic XR operations, primarily producing AR smart glasses and developing XR services for enterprise and government clients. This professional services model is also being quietly adopted by other service providers.