The AI glasses race is heating up with fierce competition, as listed companies chase the trend with "GPT on the nose bridge"

With the rapid development of large-model technology, and the compelling performance of Meta Ray-Ban smart glasses’ massive shipments, 2024 saw AI glasses spark a new wave of smart eyewear.

As a new blue-ocean market in the wearable space, AI glasses have drawn major bets from tech giants such as Apple, Samsung, and Amazon. On the domestic front, manufacturers including Huawei and Meizu have also moved to roll out AI glasses. Recently, Baidu released native AI glasses powered by a Chinese language large model—Xiaodu AI Glasses—adding another boost to this hot AI glasses track. With the AI glasses craze surging, listed companies across the industry are also eager and ready to seize the initiative in this opportunity.

In the capital markets, the AI glasses concept has attracted significant attention. Since the end of September, shares tied to the AI glasses concept have been rising for three consecutive months. Recently, AI glasses concept stocks have been active; multiple stocks such as Zhuyi Technology have hit daily trading limits.

Despite the heat in the sector, the AI glasses industry may still be on the verge of an explosion. A research report by Western Securities noted that 2025 is expected to become the breakout year for AI glasses. According to wellsennXR data and forecasts, starting in 2025, AI smart glasses will quickly penetrate traditional glasses amid a backdrop of stable growth in traditional eyewear sales. By 2035, the sales volume of AI smart glasses is expected to reach 1.4 billion pairs.

New products from many manufacturers roll out one after another, and the “Hundred Glasses Battle” begins

The earliest AI glasses can be traced back to 2012, when Google launched Google Glass. However, because it failed to achieve the anticipated market performance, Google ultimately suspended sales of the consumer version of Google Glass in 2015. After that, in September 2021, Meta and Ray-Ban collaborated to launch the first-generation smart glasses Ray-Ban Stories. As of February 2023, only about 300k units had been sold.

In September 2023, Meta and Ray-Ban’s second-generation product, Meta Ray-Ban, was launched. Weighing under 50g, it had a starting price of $299. After its release, it became a major hit product, especially after it added AI features in April 2024, when sales surged rapidly. According to IDC data, in Q4 2023 and Q1 2024, Meta Ray-Ban shipments reached 360k units and 100k units, respectively. As of Q2 2024, shipments of the product had already exceeded 1 million units.

Meta Ray-Ban’s booming performance has fully ignited market enthusiasm for AI glasses, and domestic manufacturers quickly followed suit.

In May this year, Huawei held its Huawei Summer Full-Scenario New Product Launch Conference and officially released the Huawei Smart Glasses 2 Frame Sunglasses, priced at RMB 2,299. The product is equipped with Huawei HarmonyOS 4, and has already been connected to Huawei Pangu AI large model. In August, Hive Tech launched Jiehuan AI audio glasses. In September, Starry Meizu released “StarV Air2,” an AI+AR smart glasses model focused on tech-fashion styling. The embedded AI system can provide real-time translation, voice recognition, and smart assistant functions.

Since November, domestic manufacturers have even more densely released news related to AI glasses, showing how intense the “battle” is.

First, at Baidu World 2024, Baidu released native AI glasses powered by a Chinese language large model—Xiaodu AI Glasses—which include first-person-view recording, asking while walking, object recognition encyclopedia, audio-visual translation, and smart reminders. They are expected to launch in the first half of 2025.

Next, on November 16, Looktech Technology released Looktech AI smart glasses. On November 18, Rokid launched the AI+AR glasses RokidGlasses, integrating the algorithm capability of Alibaba’s Tongyi Qianwen large model. On November 20,闪极科技 announced that it had completed tens of millions of RMB in Series A financing, and previewed that on December 19 it will jointly launch the first domestic mass-produced AI capture glasses with LOHO and iFLYTEK.

Worth noting is that, according to Veshin Information (Wellsenn XR) news, Samsung Electronics also finalized an AI smart glasses project plan in early November, powered by Google Gemini large model, with the product planned to launch in the third quarter of 2025.

AI glasses concept stays hot, and listed companies in the industry rush to grab the opportunity

Smartphone makers and internet tech giants flooding into the AI glasses space have pushed the popularity of AI glasses to a new high, and listed companies across the industry are also eager to seize the initiative in this window.

Judging from the components of AI glasses, the display lenses are undoubtedly an important part. This segment involves several major industries such as optics, display, and chips. Among listed companies, companies such as Crystal Optoelectronics and Sunny Optical Technology Group can provide key optical components for AI glasses, such as lenses and optical waveguides. SoC chips from companies such as Montage Technology and Rockchip Technology can provide AI glasses with computing and processing capabilities.

Leyard stated on an investor interaction platform that its optical motion capture technology can be used for accuracy verification and evaluation of AI glasses positioning, 4D gesture tracking, and more. It has already provided products for multiple AR/VR glasses manufacturers at home and abroad.

In the sensor sector, Will Semiconductor disclosed that its image sensor products have advantages in small size and low power consumption, and are highly aligned with the needs of end customers for AR and VR, including devices such as AI glasses. In addition, its LCOS products, with features such as high resolution, compact form factor, low power consumption, and low cost, will provide additional support for new emerging markets such as AR and VR, including AI glasses, in terms of economic adaptability and feasibility of solutions.

GoerTek, Luxshare Precision, Huaqing Technology, and others, relying on their strong capabilities in complete-device assembly, have become important manufacturers of smart glasses.

Among traditional eyewear manufacturers,博士眼镜 started laying out the smart glasses segment in 2022. It has already established cooperation with industry AI glasses brands (such as Raybird Innovation, ROKID, and Meizu), providing lens fitting and sales channels for smart glasses. In August this year,博士眼镜 and Raybird Innovation jointly collaborated to set up a joint venture company with shared investment. According to Raybird Innovation, the two sides will jointly carry out R&D design, sales, marketing, and services for the next generation of AI glasses. The first AI glasses are expected to be released by the end of 2024.

Recently, multiple listed companies have rushed to disclose their latest plans in the AI glasses field.

Jingwang Electronics said that its products such as HDI/Anylayer, rigid-flex boards, flex boards, and boards resembling carrier boards can be applied to AI smart glasses. The company closely monitors the trend of device intelligence, actively participates in discussions and pre-research on related solutions, and prepares for further expansion of product categories.

Unimicron Technology introduced that AI glasses have high requirements for being lightweight, compact, and easy to assemble with non-standard external forms. SiP module technology can meet these needs and offers advantages. The company’s SiP module products are already used in customers’ similar products. At the same time, its wireless communication SiP module products can be applied to AI smart glasses, and production will start in 2025.

Tianjian Shares said recently that the company has a technical reserve including open-ear audio technology and spatial audio technology, and has production capabilities for acoustic-optical-electronic products such as various headphones and smart glasses. The company continuously tracks the development and application of artificial intelligence technologies, and will plan and deploy related business based on market demand, its own business, and technology development needs. Due to requirements for business confidentiality, it is not convenient to respond to AI glasses contract manufacturing and potential customer information.

“The company has already signed cooperation agreements with multiple domestic and international brand eyewear customers in the AI glasses category. At present, the company’s AI glasses products are still in the sample and optimization development stage and have not reached mass production. Related markets are also in the early stage of industry development; consumer habits need to be cultivated, and there are still uncertainties in market expansion.” 亿道信息 said.

On November 25, Yujing Technology stated on an investor interaction platform that it is actively carrying out pre-research for AI glasses-related products. On November 26, Xingchen Technology said on an interactive platform that it has invested R&D resources in AI glasses chips, is currently engaging with some customers, and plans to have products launched in 2025. The company’s low-power technologies accumulated in security and surveillance and off-grid, off-electrical outdoor scenarios, industry-leading ISP visual effects, and advanced process SOC capabilities will all be applied to AI glasses.

As companies from various sides enter the field and “add fuel to the fire,” AI glasses concept stocks have been igniting multiple times in the secondary market this year.

In mid-August, AI glasses concept stocks triggered a surge to the daily limit; multiple stocks hit strong limit-up positions.博士眼镜 repeatedly closed at four consecutive “20CM” daily limit-up moves from August 13 to August 16, with a total rise of more than 107% over four trading days. On August 16, 亚世光电 closed with four consecutive daily limit-up boards. Starting at the end of September, AI glasses concept stocks have continued rising for three consecutive months. Among the 68 AI glasses concept stocks on Eastmoney, 65 saw their prices rise.

Recently, AI glasses concept stocks have continued to rally. On November 28, Zhuyi Technology saw a straight-line limit-up intraday and closed up 5.28%. Zhongke Lanjun closed up more than 10%, and Mingyue Lenses closed up more than 6%.博士眼镜, 亿道信息, Juxin Technology, 恒玄科技, and others also followed the rise.

2025 is expected to become the breakout year for AI glasses

Although a number of manufacturers are tightening their layout for AI glasses, the AI glasses industry may still be on the verge of a breakout. The industry generally believes that 2025 could become the breakout year for AI glasses.

A research report by Bank of China Securities suggested that the manufacturers entering AI glasses in the near term have strong capabilities in defining both hardware and software, and also possess the central ecosystem of smart phones. Their entry will accelerate the industry trend of AI glasses. On one hand, it could better refine AI glasses application scenarios and hardware design; on the other hand, it will better expand interaction experiences between eyewear and mature application ecosystems (such as smart agent calls to APPs), enhancing the practicality of AI glasses. AI glasses could become a new type of hardware terminal from “0 to 1.” At this point, 2025 may be the time node for major releases of AI glasses products from various players.

“The AI glasses are still in the early stages of development, but industry heat is increasing and the room for vision is large.” the research report by Bank of China Securities also noted.

“Tech giants are actively laying out, and 2025 is expected to become the breakout year for AI glasses.” Western Securities’ research report believes that with interactive multimodal large models, the interaction mode of AI glasses will shift from “providing hardware services to users” to “providing large-model services to users.” Interactive multimodal large models can understand multiple input modalities such as speech and images, helping eyewear products achieve more efficient and concise human-computer interaction, thereby increasing user acceptance.

From the supply chain perspective, a research report by Everbright Securities stated that, because current AI smart glasses do not yet require displays, by removing upstream AR optical displays and optical segments, upstream technologies in the supply chain are mature, and each segment of China’s supply chain is very mature and well developed. AI glasses may enter a moment where they break beyond niche adoption.

According to wellsenn XR data and forecasts, global eyeglass sales in 2023 were about 1.56 billion pairs. After 10 years, global eyeglass sales are expected to reach around 2 billion pairs. Starting in 2025, AI smart glasses will quickly penetrate traditional eyewear amid a backdrop of stable growth in traditional eyewear sales. By 2029, annual sales of AI smart glasses are expected to reach 55 million pairs. By 2035, AI smart glasses sales are expected to reach 1.4 billion pairs.

However, in Zhongguancun Online’s intelligent PC and hardware analyst Yin Hang’s view, the development of the AI glasses industry also faces considerable challenges.

“On the technical side, as AI applications deepen, requirements for chip performance are getting higher. The addition of real-time computing and cloud AI computing also makes battery life a new challenge. In terms of comfort, although AI glasses compared with head-mounted displays have greatly improved comfort, there is still room for further improvement.”

Yin Hang believes that looking ahead, the long-term development of the AI glasses industry will depend on technological progress and innovation capability. Among them, large models play a crucial role. Large models are the underlying driving force that promotes development in AI glasses’ sub-sectors. Their diversification and optimization for hardware directly affect the AI glasses application ecosystem and user experience. In the future, AI glasses will not only need strong local computing power, but also must be able to be compatible with and support multiple devices to realize a diversified development path.