Groovy is definitely used in real projects (and my experience suggests it's a growing trend), but perhaps not in as many ways as Java is used (or C#, C++, many others).
Groovy's syntax and ease of use are first-rate; I know of no other language in which I'd rather write code. But (1) Groovy is not as fast as Java (this matters, but not always a lot), and (2) Groovy is dynamically typed, leaving the door open to some bugs & regression that a staticly-typed language would catch for you.
As I see it, Groovy has 2 "sweet spots:"
- unit tests (OMG these are better in Groovy)
- simple command-line tools related to your project (these are x-platform and you can write & maintain them with your Java skills)