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 enticing results from Meta Ray-Ban smart glasses’ massive shipments of a breakout product, in 2024, AI glasses kicked off a new wave of smart eyewear.

As a new blue ocean in the wearable smart eyewear market, AI glasses have not only attracted tech giants such as Apple, Samsung, and Amazon to bet on the category. On the domestic front, manufacturers including Huawei and Meizu have also been rolling out plans for AI glasses. Recently, Baidu released native AI glasses powered by a Chinese large model—Xiaodu AI Glasses—adding yet another boost to this hot AI glasses track. As the AI glasses craze surges, listed companies across the industry chain are also gearing up, aiming to seize the early opportunity on this boom.

In capital markets, the AI glasses concept has drawn significant attention. Since the end of September, shares tied to the AI glasses concept have been rising for three consecutive months. Recently, shares in the AI glasses concept have been actively trading; multiple stocks, such as Zhuying Technology, have seen limit-up moves during the trading session.

Although the sector is hot, the AI glasses industry may still be on the verge of its breakout. A research report from Western Securities points out that 2025 is expected to become the breakout year of AI glasses. Based on wellsennXR data and forecasts, starting in 2025, AI smart glasses are expected to rapidly penetrate traditional glasses in a context where traditional eyewear sales remain stable with growth; by 2035, sales of AI smart glasses could reach 1.4 billion pairs.

New product launches from many companies one after another, “the Hundred Glasses War” begins

The earliest AI glasses date back to 2012, when Google launched Google Glass. However, because it failed to achieve the expected market performance, Google ultimately paused sales of the Google Glass consumer version 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, about 300,000 units had been sold.

In September 2023, Meta and Ray-Ban’s second-generation product, Meta Ray-Ban, debuted. Weighing less than 50g, it started at a price of $299. After going on sale, it became a major hit—especially after April 2024, when AI features were added, sales grew rapidly. According to IDC data, in the fourth quarter of 2023 and the first quarter of 2024, Meta Ray-Ban shipments were 360,000 units and 100,000 units respectively; as of the second quarter of 2024, shipments for this product had already exceeded 1 million units.

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

In May this year, Huawei held its Huawei Summer All-Scenario New Product Launch, officially releasing Huawei Smart Glasses 2 Rectangular Sunglasses, priced at 2,299 yuan. The product runs Huawei HarmonyOS 4 and has already been integrated with Huawei’s Pangu AI large model. In August, HiveWorks Technology launched Jiehuan AI audio glasses. In September, Starry Meizu released the AI+AR smart glasses “StarV Air2,” featuring a tech-fashion look; the built-in AI system can support real-time translation, voice recognition, and intelligent assistant functions.

Since November, domestic manufacturers have been releasing AI glasses-related news at a high frequency—“the flames” are evident.

First, at the 2024 Baidu World Conference, Baidu unveiled native AI glasses powered by a Chinese large model—Xiaodu AI Glasses. They come with first-person-perspective video capture, ask-as-you-walk, object recognition encyclopedia, audio-visual translation, intelligent reminders, and more, with plans to launch in the first half of 2025.

Then, on November 16, Looktech Technology released Looktech AI smart glasses. On November 18, Rokid launched the AI+AR glasses RokidGlasses, integrating the algorithm capabilities of the Tongyi Qianwen large model from Alibaba. On November 20, Flashlight Technology announced the completion of tens of millions of yuan in Series A funding, and previewed that on December 19 it would jointly launch China’s first mass-produced AI capture glasses with LOHO and iFlytek.

It is worth mentioning that, according to Wellsenn XR information, Samsung Electronics also finalized its AI smart glasses project plan in early November, powered by Google Gemini large model, with plans to launch in the third quarter of 2025.

AI****glasses concept stays hot, industry-chain listed companies scramble for the opportunity

With smartphone manufacturers and major internet companies rushing into the AI glasses space, the heat of AI glasses has been pushed to a new high. Industry-chain listed companies are also eager, looking to seize the initiative in this opportunity.

From the composition of AI glasses, the display lenses are undoubtedly an important part. This segment involves several key industries, including optics, displays, and chips. Among listed companies, companies such as Crystal Optoelectronics and Unisplendour Optics Technology can provide key optical components for AI glasses, such as lenses and light guides. SoC chips from companies such as Hengxuan Technology and Ricoh Tech can provide AI glasses with computation and processing capabilities.

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

In the sensor field, Well shares said its image sensor products have strong advantages in small sizes and low power consumption, making them highly suited to the needs of AR and VR terminals, including AI glasses. In addition, the company’s LCOS products, benefiting from high resolution, compact form factor, low power consumption, and low cost, will provide additional support for emerging markets such as AR and VR, including AI glasses, in terms of economic suitability and feasibility of solutions.

Companies such as Goertek, Luxshare Precision, and Wuxi A-Tech have become important manufacturers of smart glasses due to their strong capabilities in assembling complete devices.

Among traditional eyewear manufacturers, Doctor Glasses began laying out the smart eyewear track in 2022. It has already established cooperation with AI glasses brands in the industry (such as Thunderbird Innovation, ROKID, and Meizu), providing lens fitting services and sales channels. In August this year, Doctor Glasses and Thunderbird Innovation cooperated to jointly invest in setting up a joint venture company. According to Thunderbird Innovation, the two sides will jointly carry out work including 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 been competing to disclose their latest plans in the AI glasses field.

Jingwang Electronics said its products such as HDI/Anylayer, flexible-rigid boards, flex boards, and boards like carrier boards can be used in AI smart glasses. The company closely monitors the development trend of terminal intelligence and actively participates in discussions and pre-research for relevant solutions to prepare for the next step in expanding product categories.

Unitech Electronics introduced that AI glasses have high requirements for being lightweight, compact, and easy to assemble with unconventional-shaped exteriors. SiP module technology can meet these needs and has advantages; the company’s SiP module products are already used in similar customer products. At the same time, the company’s wireless communication SiP modules can be applied to AI smart glasses products, with mass production planned for 2025.

Tianjin Tianjian Co., Ltd. said recently that it has technology reserves such as open-ear audio technology and spatial audio technology, and also has production capabilities for audio-visual-electronic products such as various headsets and smart glasses. The company continues to track technological development and applications in the AI field, and will plan and deploy related businesses according to market demand, its own business and technology development needs. Due to commercial confidentiality requirements, it is not convenient to respond with AI glasses contract manufacturing and potential customer information.

“The company has already signed cooperation agreements with multiple domestic and international eyewear brand customers in the AI glasses category. At present, the company’s AI glasses products are still in the trial-sample and optimization development stage and have not reached the mass-production stage. The related market is also in the early stage of industry development, and consumer habits need to be cultivated. There are still uncertainties in market expansion.” YiDao Information said.

On November 25, Yimo Technology said on an investor interaction platform that it is actively carrying out pre-research work on AI glasses-related products. On November 26, Starrystar Technology said on the interaction platform that it has invested R&D resources in AI glasses chips and is currently connecting with some customers, planning to have products launched in 2025. The company’s low-power consumption technologies accumulated in no-network, no-electricity outdoor security scenarios, its industry-leading ISP visual effects, and advanced process SOC capabilities will all be applied to AI glasses.

As more companies enter the market and “add fuel,” AI glasses concept shares have been booming multiple times in the secondary market within the year.

In mid-August, AI glasses concept shares triggered a wave of limit-up moves; multiple stocks surged to limit-up strongly. Doctor Glasses repeatedly hit four consecutive “20CM” limit-up closes from August 13 to August 16, with a total surge of over 107% across four trading days; on August 16, Asia Century Optoelectronics closed with a 4-day consecutive limit-up. Since the end of September, AI glasses concept shares have risen for three consecutive months. Among 68 AI glasses concept stocks tracked by Eastmoney, 65 have seen their share prices rise.

Recently, AI glasses concept shares have continued to rally. On November 28, ZhuoYi Technology hit a straight limit-up intraday and ended up closing up 5.28%. Zhongke Lansignal closed up more than 10%, while Mingyue Lenses closed up more than 6%. Doctor Glasses, YiDao Information, Juxin Technology, and Hengxuan Technology followed with gains.

2025 is expected to become the breakout year for AI glasses

Although a number of manufacturers are rolling out AI glasses plans in full force, the AI glasses industry may still be just before the breakout. The industry generally believes that 2025 may become the breakout year of AI glasses.

A research report from Bank of China Securities says that the manufacturers that have moved into AI glasses recently have strong capabilities in defining both software and hardware, and they also have the central position of smart phones within the ecosystem; their entry will accelerate the industry trend of AI glasses. On the one hand, it is expected to better refine AI glasses application scenarios and hardware design. On the other hand, it will also better expand the interaction experience between glasses and mature application ecosystems (such as smart agent calling APPs), enhancing the practicality of AI glasses. AI glasses are expected to become a new type of hardware terminal from “0 to 1.” Judging from current situation, 2025 may be the timing for major AI glasses product launches from all directions.

“The AI glasses are still in an early development stage, but industry heat is increasing and there is a large space for the vision.” The Bank of China Securities research report also said.

“A tech giants are actively laying out plans, and 2025 is expected to become the breakout year for AI glasses.” Western Securities’ research report believes that once interactive multimodal large models are deployed, the interaction mode of AI glasses will shift from “hardware serving users” to “large-model serving users.” Interactive multimodal large models can be understood as supporting multiple input methods such as voice and images, helping glasses products achieve more efficient and concise human-computer interaction, thereby improving user acceptance.

From the perspective of the industry chain, a research report from Everbright Securities says that because at this stage AI smart glasses do not require display, removing upstream AR optical display and optical components, upstream technologies in the industry chain have matured, and every link in China’s industry chain is very mature and well developed. AI glasses are expected to reach a “break out of the niche” moment.

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 rapidly penetrate traditional eyeglasses in the context of stable growth in traditional eyeglass sales. In 2029, annual sales of AI smart glasses could reach 55 million pairs. By 2035, AI smart glasses sales are expected to reach 1.4 billion pairs.

However, in the view of Yin Hang, a smart PC and hardware analyst at ZOL, the development of the AI glasses industry also faces significant challenges.

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

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