Counterpoint Research says regional players are increasingly differentiating themselves through localised AI experiences, deeper ecosystem integration and services tailored to domestic consumersl
India is emerging as a critical battleground for artificial intelligence (AI)-powered smart glasses as global shipments of intelligent eyewear surged 83 per cent year-on-year (YoY) in the first quarter of 2026, according to Counterpoint Research.
The research firm said that India, alongside China, is witnessing the rise of distinct smart eyewear ecosystems, with companies increasingly developing localised services and AI experiences tailored to domestic users.
The finding assumes significance as technology firms look beyond smartphones for the next phase of consumer electronics growth and seek to tap India’s expanding digital ecosystem.
According to Counterpoint’s latest XR 360 Research Service, regional players in India are differentiating themselves through stronger service localisation, deeper ecosystem integration and AI-led experiences aligned with local consumer behaviour.
“Distinct regional ecosystems are beginning to take shape in smaller but rapidly evolving markets such as China and India,” the report said.
Counterpoint noted that while the United States remains the world’s largest smart glasses market, emerging markets such as India are becoming increasingly important due to their large user base and growing appetite for AI-enabled devices.
Industry analysts believe India’s multilingual consumer base and rapidly expanding digital services ecosystem could encourage manufacturers to introduce products with local-language support and region-specific applications.
AR, Smart Glasses Drive Growth
Globally, shipments of augmented reality (AR) glasses rose 136 per cent YoY in the January-March quarter, while display-less smart glasses recorded a 210 per cent increase.
In contrast, virtual reality (VR) headset shipments declined 17 per cent YoY, weighed down by ageing product portfolios, limited new launches and cautious investments by leading vendors.
Meta retained its dominance in the display-less smart glasses segment, accounting for nearly 84 per cent of global shipments during the quarter. However, Counterpoint said local ecosystems in countries such as India could gradually intensify competition as domestic and regional brands offer services better aligned with local consumer needs.
The report also highlighted growing momentum in waveguide-based AR glasses, which integrate AI capabilities with see-through displays to offer more immersive and context-aware experiences.
Despite rising component and memory costs affecting the broader extended reality (XR) industry, Counterpoint remains optimistic about the long-term prospects of AR and smart glasses, citing rapid ecosystem development and increasing industry support for AI wearables.
As global technology companies race to establish an early lead in AI-enabled wearables, India is likely to emerge as an important market shaping the future trajectory of smart eyewear adoption.
