The struggle of the tech giants: the competition for dominance in AR/VR/XR market-the current status of the XR market

Published on: March 19, 2025 / update from: March 19, 2025 - Author: Konrad Wolfenstein

The struggle of the tech giants: the competition for dominance in the AR/VR/XR market-the current status of the XR market-Image: Xpert.digital

Technologists and the fight for the XR market

Extended Reality focus: the strategies of the Big Player

The world of expanded reality (Extended Reality, XR) has developed from a distant promise to a tangible reality, with the largest technology companies in the world struggling for dominance in this aspiring market. Meta, Apple, Google, Samsung and Amazon have intensified their strategies and invest massively in the development of innovative AR (augmented reality), VR (virtual reality) and XR (extended reality) technologies. The following report analyzes the current status of this competition based on the latest developments and announcements.

Suitable for:

VR, AR and MR in a global comparison: Regional focuses, technical milestones and current XR market developments

The current status of the XR market

XR technology includes virtual reality, augmented reality and mixed reality, whereby each of these technologies is fundamentally changing the way we interact with the digital world. Wirtschafts forecasts show impressive growth potential: According to market sand markets, the VR market will reach a volume of $ 38 billion by 2029, with an annual growth rate of 19.1%. Mordor Intelligence even expects a market volume of $ 187.4 billion by 2030, which corresponds to an annual growth rate of 42.05%.

The falling hardware costs are an important factor for the future distribution of VR. The average price for a VR headset is expected to drop from around $ 400 in 2022 to around $ 200 in 2025. This price reduction could make the technology accessible to a wider audience and accelerate acceptance.

The strategies of the big tech companies

Google and Samsung: A powerful alliance

With Android XR, Google has introduced a new operating system for augmented reality, mixed reality and virtual reality. This system was developed in cooperation with Samsung and Qualcomm. The platform is already available for developers as a preview and supports Arcore, Android Studio, Jetpack Compose, Unity and OpenXR.

In parallel, Samsung has announced its first VR headset based on Android XR, which is developed under the code name “Project Moohan”. Moohan, Korean for “Infinity”, is scheduled to come onto the market in 2025 and is based on Qualcomm's premium chipset Snapdragon XR2+ Gen 2. The device will offer color-fitthrough, be designed for mixed reality and have eyetracking functions for UI navigation.

In addition, Samsung also develops controllers for its XR headset. These should not be included in the scope of delivery, but should be offered as optional accessories, especially for applications such as gaming.

Meta: 2025 as a decisive year

Meta announced the Meta Connect 2025 for September 17 and 18, 2025. At this event, the company wants to present “the latest and best Meta Horizon updates, ventilate the curtain for tomorrow's technology and XR-developing the tools that they need”.

Andrew Bosworth, CTO of Meta, describes in 2025 as the “most critical year” for the company's XR efforts. In an internal memo entitled “2025: The Year of Greatness”, he writes: “This year certainly whether this entire [XR] effort will be entered into history as the work of visionaries or as a legendary misfortune”.

Meta plans for 2025 “Half a dozen new Ki-Wearables”, including Ki glasses from Oakley, high-end glasses with a small context display and a neural bracelet for control. In addition, the Meta Quest 3S is the test stone for the entire VR industry.

Apple: Premium strategy with Vision Pro

Apple has already launched a mixed reality headset with the Vision Pro, which is clearly positioned in the premium segment with a price of $ 3,499. Apple's strategy focuses on productivity and high -quality experiences.

The company from Cupertino thus pursues a different approach than META, whose quest 3 is available for $ 500. According to media reports, Apple employees are “confident” to launch the better gadget with the Vision Pro, although
there are challenges such as the weight of the glasses and the high price.

Amazon: The aspiring challenger

Amazon is increasingly investing in AR and VR technologies and builds up a corresponding team. The group has advertised numerous positions in areas such as computer vision, design, product management and research.

In a job advertisement, it says: "You will develop an advanced XR research concept into a magical and useful, previously unable to develop consumer product". It is not yet known which specific XR product Amazon is planning. So far, the company has only offered the Echo Frames audio glasses, which, however, comes without a display.

In addition, Amazon already uses AI technologies to improve the shopping experience, such as with the Ki-Chatbot Rufus, which indicates possible future integrations with XR technologies.

Suitable for:

Mixed.de asks: Which XR technology will prevail – VR, MR or AR? Here is our answer

Technological developments and platform strategies

The competition between the tech giants is also manifested in the form of different platforms and operating systems. Meta has its own operating system (based on Android), Google introduces Android XR, and Apple uses its realityos.

Apple and Google's platform strategy is effective: by mobile use of AR, developer communities can work together, create added value for various industries and familiarize themselves with new UX design systems for AR applications. This leads to the establishment of long -term standards and platform dependencies.

An important technological progress is the integration of AI in XR applications. For example, Project Moohan fully relies on the integration of Gemini AI, which enables contextual interactions. META and Apple also integrate AI functions into their XR products.

The competition for market shares and price strategies

The different companies pursue different price and market strategies:

Apple positions itself with the Vision Pro ($ 3,499) in the premium segment
Meta offers 3S (350 euros) more affordable options with the quest 3 ($ 500) and the new quest 3S
Samsung and Google aim with Project Moohan at a price that should be “clearly below” that the Apple Vision per

This price differentiation reflects the different target groups and market positioning. While Apple aims at premium users and professionalism, Meta tries to reach a wider market, especially in the gaming area.

Outlook for 2025: The decisive year for XR

In 2025, a key year for the XR industry is expected to be. With the introduction of Samsung and Google's mixed reality headset, the previous duel between Meta and Apple becomes a three-way battle that will shape the industry in the coming years.

The trend goes to premium headsets and ultra-light experimental devices with high-resolution OLED micro displays. In addition, further surprises could follow over the course of the year, possibly Valve or other manufacturers.

An intensive competition with an open outcome

The struggle for dominance in the AR/VR/XR market is in full swing, and the large tech companies have significantly intensified their strategies. Meta, Apple, Google, Samsung and Amazon massively invest in the development of new technologies and products.

The year 2025 will be a crucial year for the industry, in which it will be shown which approaches and technologies can prevail. Consumers can benefit from this competition because it will lead to lower prices, more innovative products and a broader availability of XR technologies.

It remains to be seen whether virtual reality, augmented reality or mixed reality will ultimately prevail as a dominant technology. It is likely that different areas of application will favor different technologies, which could result in a diverse ecosystem in which several companies can be successful.

Suitable for: