Future of XR: key trends shaping 2025 and beyond

At Futuresource, we’re seeing a transformative shift in the XR (Extended Reality) landscape. In our latest Future Session, Nikolaos Tzoumerkas, Lead Analyst XR unpacks the trends redefining the space, from immersive gaming to AI-powered smart glasses. 

Market momentum 

Since Meta’s rebrand and Apple’s Vision Pro launch, XR has gained significant traction. While VR has seen a slight dip in early 2025, a new wave of innovation is expected to reignite interest later this year. 

Beyond gaming: expanding use cases 

Gaming remains XR’s core use case, but sectors like education, healthcare, and defence are rapidly adopting the technology. Meta’s collaboration with Anduril to enhance battlefield awareness is just one example of XR’s growing strategic value. 

AR takes the lead 

The industry is shifting from VR to AR, with companies like Meta and Apple racing to release lightweight, user-friendly AR glasses. These devices blend digital content with the real world, making them ideal for everyday applications like navigation and interactive learning. 

AI glasses & gen XR 

Smart glasses with AI capabilities, like real-time translation and visual recognition, are gaining popularity. Meta’s partnership with Ray-Ban has already seen millions of units shipped. The future? Fully immersive AR with gesture control and neural interfaces. 

What’s next? 

Google’s Android XR platform, powered by Gemini AI, is unifying the XR ecosystem. With collaborations across fashion, tech, and luxury brands, XR is poised to become more accessible, stylish, and intelligent than ever. 

XR is no longer a niche—it’s a rapidly evolving ecosystem with the potential to reshape how we work, learn, and connect. Stay tuned as we continue to explore the future of immersive tech in our upcoming Future Session.

To view the latest Future Session on the XR market place please register here and you can view it immediately.

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Futuresource Consulting, established in the 1980s, is a leading research and consulting firm specialising in global market analysis, forecasts and strategic insights. With a deep understanding of emerging trends and technologies, Futuresource helps businesses navigate complex markets and make informed decisions.