The buzz surrounding AI glasses has significantly picked up momentum as the new year approaches, with a noticeable surge in stock prices of companies involved in this burgeoning sectorFor instance, Baoming Technology recently saw its stock reach the ceiling limit, while companies like Skyworth Digital and Thunder Technology also marked gains of over 5%. Other players, such as Guoxing Optoelectronics and Guanghong Technology, joined the upward trend, indicating a robust interest in the AI glasses market.

In early January, the international consumer electronics show set to take place in Las Vegas will feature several companies, including Thunderbird Innovation and BigScreen VR, unveiling their latest developments in AI glassesThis event has drawn considerable attention from industry experts and enthusiasts alikeMeta, the tech giant known for its social media platform, has also announced plans to enhance its Ray-Ban smart glasses by as early as 2025, integrating a display screen that will showcase notifications and virtual assistant responses.

Industry analysts believe this current wave of excitement in AI glasses primarily stems from investment and involvement from major players in the smart hardware sector

Advertisements

While there is a noticeable enthusiasm within the industry, this enthusiasm has yet to fully resonate with consumersExperts suggest that it will take time for the average consumer to see the value in investing in such advanced technology.

Forecasts indicate that the penetration of AI technology in smart glasses could rise significantly, reaching an impressive 60% by 2025. The trend of integrating AI into hardware is anticipated to gain traction starting in September 2024, with various augmented reality brands such as Rokid and major AI models entering the frayThis competition is being dubbed the “Battle of the Hundred Glasses,” reflecting the intense race among brands to capitalize on the technology.

According to data from Loto Technology, online sales of AR (Augmented Reality) glasses in China reached a remarkable 126,000 units in November 2024, showcasing a year-over-year growth of 40%. Analysts predict that by 2025, the proportion of AI features in AR glasses sold in China will leap from under 20% in 2024 to over 60%. CINNO Research has projected that sales of consumer-grade AR glasses will hit around 284,000 units in China in 2024, with a substantial revenue increase to approximately 700 million CNY.

Moreover, analytics indicate a thriving global market, with expectations that global shipments of AR glasses will reach 600,000 units by 2024, reflecting a year-over-year increase of 25%. By 2025, driven by competitive pricing strategies from AR glasses brands, global sales are projected to rise further to about 1.1 million units.

In stark contrast to the mixed reality (MR) market, which is largely dominated by tech giants like Meta, Sony, Apple, and ByteDance, the AR glasses market is seeing rapid innovation and growth spearheaded by rising Chinese brands such as Thunderbird, Xreal, and Rokid

Advertisements

Chen Xuecheng, an XR analyst from Qunzhi Consulting, emphasizes that this advantage can be attributed to the relative simplicity of standalone AR glasses, which primarily consist of optical modules and display screens—lowering barriers to entry in terms of technology and capital.

Furthermore, the AR glasses supply chain is predominantly supported by Chinese manufacturers, allowing domestic brands to excel in supply chain integration and cost optimizationThis foundational support has laid the groundwork for the rapid advancements and adoption of AI glasses across the industry.

The recent surge in AI glasses stock also reflects the multi-faceted nature of smart hardware manufacturing, which encompasses various components and terminal manufacturersSome companies have well-established roots in virtual reality (VR) technology, while others are strategically pivoting towards the smart glasses sector.

For example, Skyworth Digital, which has previously engaged in VR headsets, recently reported that they have formed long-term collaborations with several leading AI model manufacturers to drive innovation in AI glasses

Advertisements

Similarly, Thunder Technology, primarily a gaming laptop producer, announced its plans to launch three smart glasses products at the upcoming CES 2025.

In terms of components and manufacturing, Baoming Technology supplied backlight sources for AI glasses as early as August 2024, while Guoxing Optoelectronics has indicated that their MiniLED backlight products are suitable for VR headsetsMoreover, suppliers like Guoguang Electronics and Guanghong Technology are keenly focused on advancing AI accessory developments, including AI headphones, although uncertainty still lingers about future market conditions.

Despite these advancements, it is worth noting that all six highlighted companies experienced declines in net profit in the first three quarters of 2024 compared to the previous year, hinting at the challenges that remain in this competitive environment.

In the past couple of months, there has been a flurry of announcements regarding AR glasses releases in China

• $4 Trillion! Apple's Full Throttle Pursuit
• Can Japan's Stocks Escape the 'Home-Abroad' Paradox?
• Tech Sell-Off Hits Christmas Rally
• Bitcoin Stalls After Record High
• Economic Prosperity Continues to Improve