In-depth research on “AI glasses”

This article will provide an in-depth analysis of the market development overview, core technology, industrial ecology and future trends of AI glasses, explore their potential and challenges in the consumer market, and reveal how AI glasses move from “smart accessories” to “core personal computing devices” through the analysis of benchmark cases such as Xiaomi AI glasses, Rokid and XREAL, as well as their key layout in ecological competition.

I have always held the view that in the future, AI will not only make traditional software do it again, hardware will also usher in a deep combination with AI, bringing a new product experience of consumer hardware, compared with paying for AI software, more domestic users are willing to pay for AI hardware with touchable experience, which may also be the first entry point for the commercialization of domestic C-end AI applications.

Last year, I analyzed a report on Doubao AI headsets, which is the two days Xiaomi is releasing AI glasses, today mainly through an article to quickly understand the field of AI glasses, the following full text is to read and merge 8 analysis reports on AI glasses after summarizing the output results, the whole output process from the collection of relevant information, to passing「Gemini」Batch reading extracts key information, and finally uses “AI Quick Research Hero” kuaiyanai.comThe whole process of constructing a research outline and organizing it into an article takes about 3 hours, although it is not as long as the previous output, but I think it should be enough as a quick literacy, see below for specific content.

1. Overview of the development of the AI glasses market

1.1. Ray-Ban glasses started the AI glasses war, and AI glasses entered the first year of the outbreak

In September 2023, Ray-Ban Meta detonated the market, and sales quickly exceeded one million. Its success lies in the fact that AI glasses focus more on fashion and wearing attributes, and the product form is easy to accept by consumers. At the same time, the pricing range of 1,000-3,000 yuan allows users to obtain a combination of “glasses + OWS headphones + action camera + AI” at a lower cost. With the entry of major manufacturers such as Xiaomi, Huawei, and Samsung, it is expected that 2025 will usher in the explosion of new AI glasses.

1.2.AI the core product capabilities of the glasses

To sum up, the current AI glasses are an intelligent hardware with AI voice interaction, image recognition, and shooting capabilities, or a combination of “glasses + open headphones + action camera + AI”.

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The integration of AI large models is the fundamental driving force for the development of this round of AI glasses, which makes glasses no longer simple display or shooting tools, but personal intelligent assistants with powerful functions such as voice interaction, real-time translation, image recognition, and intelligent question answering, which greatly enhances the practical value of the product.

1.3. Smart glasses track layout

To sum up, the track of smart glasses mainly includes 4 tracks: AI glasses, AR glasses, VR glasses, and MR glasses, and the differences between these four are mainly as follows:

1. AI glasses: As mentioned earlier, AI glasses are a combination of “glasses + OWS headphones + action camera + AI”, in terms of form, it is not much different from ordinary glasses and model shapes, adding AI voice interaction, image recognition, shooting, headphones and other functions; The core advantages of its experience layer are lightweight, low power consumption, comfortable to wear, suitable for all-weather use, and can be applied to sports, outdoor, daily life, office scenarios, etc.
2. AR glasses: The AI eyes mentioned above only have the ability to capture the visual content seen by the real world eyes in terms of vision, and will not display machine-generated content in the glasses vision, while AR glasses in addition to seeing real-world content, computer-generated images, text, 3D models and other virtual information are projected onto the user’s retina in real time, and accurately aligned with objects in the real world.
3. VR Devices:products for VR equipmentThe form often presents VR all-in-one machines and headsets, providing a fully immersive virtual experience, which means that the content you see is virtual content, not real-world content, and the main application scenarios are games, film and television, education, and tourism.
4. MR equipment: mainly in the form of a helmet, it integrates AR and VR, and has virtual and real interaction.

To put it simply, with AI glasses, you can see that there is an apple in the real world, you can only shoot or identify this apple, etc., and cannot have other visual interactions with the visual content of the apple; In addition to allowing you to see the apple, you can also see the digital information of the apple, such as size, color, calories, and ripeness; In VR glasses, you only see a virtual apple, while in MR glasses, you not only see a virtual apple, but also use your hands to cut apples to make fruit cutting games;

1.4.AR the challenge of glasses and the opportunity of AI glasses

The concept of AR glasses has been around for a long time, but the development of consumer-grade AR glasses is very slow, with only 500,000 units shipped worldwide in 2024, and the reasons behind it are the three major challenges of hardware, scenario and price;

1. Hardware Impossible Triangle: AR glasses are difficult to achieve thinness, portability, powerful performance, and affordable price at the same time;
2. Single application scenario: At present, it is mainly used in movie viewing and other scenarios, which cannot meet the requirements of multi-scene and all-weather wear, so it cannot impress users;
3. Expensive: AR glasses, which cost tens of thousands of dollars, can not replace daily glasses, and as electronic devices, the price is too high;

In contrast, AI glasses abandon the “big and complete” design concept of AR glasses, providing new ideas for the gradual development of the AR industry, first solving the lightweight and beautiful and core AI functions, and then gradually adding displays, and finally realizing the capabilities of AR eyes;

1.5.AI the core player of glasses

There are more than 60-70 manufacturers of AI smart glasses under development in the market, which are mainly divided into six categories. Smartphone manufacturers, XR brand manufacturers, and Internet manufacturers have significant advantages due to their technology accumulation, ecosystem, and user base.

1. Smartphones:Manufacturers Xiaomi, Samsung, Interstellar Meizu, Transsion Holdings, etc.
2. XR brand manufacturers:Meta, Rokid, Thunderbird, Dapeng VR, Film and Vision Technology, Li Weike, Tribute to the Unknown, etc.
3. Internet manufacturers:ByteDance, Alibaba, Baidu, etc.;
4. Mobile operators:China Mobile, China Telecom;
5. TWS and other hardware vendors:Shaoyin, Wanmo, Lenovo, Skyworth, Thor, Shanji, KTC, Numiao Technology, Car Return Technology, etc.;

1.6.AI the future market size of glasses

According to welsenn XR, shipments of AI glasses will grow to 90 million by 2030;

2. The industrial ecology and key technologies of AI glasses

2.1. Industrial chain structure

1. Upstream (Core Components):Including chips (SoCs), optics (lenses, optical waveguides), sensors, storage, batteries, etc. This is the link with the highest technical barriers and the greatest value.
2. Midstream (complete machine manufacturer and solution provider):It is mainly an ODM/OEM foundry, responsible for product assembly and manufacturing.
3. Downstream (Brands & Applications):It includes brand manufacturers (such as Meta, Xiaomi, Huawei), content developers and application solutions for various industries.

2.2. Core technology dismantling

1) SoC (System-on-Chip) – the brain and heart of AI glasses

• Importance:SoC is the absolute core of AI glasses, and its performance directly determines the computing power, power consumption and overall experience of the product. It integrates key modules such as CPUs, GPUs, NPUs (AI processing units), and ISPs (image signal processors). It can be said that SoC is the brain and heart of AI eyes, and it is also the core of the cost, taking Ray-Ban glasses as an example, the price of the main control chip Qualcomm AR1 is 31% of its cost
• Localization trend:With the outbreak of the AI glasses market, domestic SoC manufacturers are emerging and beginning to occupy an important position in this emerging field, launching targeted solutions, which is expected to break the monopoly of foreign manufacturers

2) ISP image signal processor – the determinant of imaging effect

An ISP is a specialized processing of raw data captured by image sensorsDigital chip。 It is an integral core part of all camera modules and determines the quality of AI glasses imaging.

2.3. Cost composition

Taking Ray-Ban Meta as an example, in its hardware cost,The main control chip (SoC/CPU) accounts for the highest proportion, about 32.3%。 followed by optical modules, camera modules and storage, etc.

3. Industry challenges of AI glasses

For the current industry challenges of AI glasses, I think it can be summarized in three main points:

1. Too long delay, and the challenge of stable fluency: Users hope that AI glasses can maintain the smooth operation of functions in long-term use, and there are still many problems in terms of latency and fluency, such as the corresponding duration of the dialogue of Xiaomi AI glasses after preliminary testing, and it cannot support the real-time voice experience that can be interrupted at any time;
2. Insufficient development of application scenarios: Users expect AI glasses to accurately match the needs of different scenarios, but the current lack of technology maturity is one of the core issues restricting the development of the AI glasses industry.
3. The supply chain cost of AI glasses is high: mainly affected by three factors: raw material prices, production process complexity, and market demand fluctuations of core components. The cost of core components (such as optical modules and processors) is very sensitive to raw material price fluctuations, such as the price of high-purity optical glass will directly affect the cost of optical modules; The manufacturing of advanced processors requires a high-precision and complex process, which significantly drives up the cost of production; The unpredictability of market demand puts significant pressure on pricing and inventory management upstream and downstream of the supply chain, impacting costs.

4. Benchmark case: Xiaomi AI glasses

4.1. Core functions of the product

• Core Functions and Configurations:Xiaomi AI glasses integrate a 12-million-pixel camera that supports first-person view (POV) photography and video; Open soundfield speakers are used to take into account both listening and environmental perception; It also deeply integrates the “Xiao Ai classmate” AI assistant, which supports real-time translation, navigation, message reminders, and video calls with third-party applications.
• Hardware Design and Benchmarking:The product is directly benchmarked against the world’s popular Ray-Ban Meta. It adopts the “Qualcomm AR1+ Hengxuan” dual-core architecture, which is designed to optimize performance and power consumption. The design emphasizes lightweight and adaptation to Asian face shapes. It is worth noting that its bill of materials (BOM) cost is about $177.5, which is higher than Meta’s $149, indicating that Xiaomi has not compromised on low prices in the selection of core components, but has pursued higher quality and performance. In addition, a higher premium version of electrochromic lenses is available.
• Pricing Strategy:The starting price of 1,999 yuan (about $275) is on the same level as Ray-Ban Meta’s $299 pricing. This shows that Xiaomi’s strategy is not to launch a “price war” to seize the market, but to set a high-quality industry benchmark while ensuring reasonable profits.

4.2. Strategic positioning: “AI entrance on the go”

• Ecological linkage is the core:The core strategic positioning of Xiaomi AI glasses is to become a key “entrance” to its huge “full ecology of people, cars and homes”. Its biggest differentiated value proposition is that users can seamlessly control smart devices at home through glasses, obtain vehicle information, and integrate glasses into an existing and mature IoT ecosystem.
• Upgrading from accessories to core terminals:Xiaomi released the product with the main brand “Xiaomi” instead of the ecological chain brand “Mijia”, releasing a strong signal: AI glasses have been upgraded from a “smart accessory” to a “core personal computing device” alongside mobile phones, tablets, and cars in Xiaomi’s strategic map.

4.3. Market response and evaluation

Initial sales are hot:After the product was released, it received strong market attention, with more than 30,000 reservations and was quickly sold out on official channels such as Xiaomi Mall, showing strong brand appeal and initial market demand

Industry and user evaluation:Industry evaluations are polarized. On the one hand, its dual-core architecture, ecological integration capabilities, and relatively restrained pricing are recognized. But on the other hand, there are also views that this is more like a strategic investment to “test the waters” than to “go all out”, such as Li Nan, a former Meizu executive, who criticized its high pricing of the electrochromic version, believing that it is not conducive to the popularization of technology. The core challenge facing the product is still how to prove its “indispensable” rigid demand value to a wider range of consumers outside of Xiaomi’s ecological users.

4.4. Comparison of industry competitors

The following is a comparison between Xiaomi and other AR glasses manufacturers in the industry, in contrast, Xiaomi glasses in product positioning, more focused on general portable AI, its strategic value is mainly to use glasses as the new control center of the existing huge IoT ecosystem, enhance user stickiness, and prevent subversion by other platforms.

5. Bid case: Rokid

As a senior player in the domestic AR field, Rokid’s strategic feature lies in its adherence to core technology and the dual-track development model of parallel B-end and C-end markets.

5.1. Product Portfolio Analysis: Spanning enterprise and consumer markets

Enterprise (B2B) Products:Industrial-grade AR headsets represented by Rokid X-Craft are designed for harsh industrial environments, with high durability and professional functions, and are mainly used in equipment inspection, remote expert guidance, employee training and other scenarios, which is its stable source of income.

Consumer Grade (B2C) Products:The consumer-facing product line pays more attention to lightweight and daily experience. Weighing just 49 grams, Rokid Glasses are close to regular sunglasses and offer practical AI functions such as navigation, translation, speech teleprompting, and more. The Rokid AR Studio suite (including glasses and console) provides more powerful spatial computing power and supports AR gaming, office and entertainment applications. Its consumer-grade products have received a positive response from the market, with Rokid Glasses receiving more than 250,000 “handed” orders within a short period of release, showing strong market appeal.

5.2. Business model: diversified exploration

• B+C two-wheel drive:Rokid is one of the few companies in the industry that has an in-depth layout on both the B-side and the C-end. The B-end business (industry, cultural tourism, medical care, education) provides it with stable cash flow and opportunities for in-depth vertical industry applications, while the C-end business aims at a broader consumer market in the future. In 2023, its industrial revenue will account for a quarter of the company’s total revenue and maintain rapid growth
• Build an open ecosystem:Rokid is well aware of the importance of the content ecosystem and is actively attracting developers to create rich third-party applications for its platform through its self-developed YodaOS operating system and AR Studio development toolchain, which is a key step towards platformization

5.3. Technology Moat: Obsession with True AR

• Adhere to the OST technical route:Unlike the VST (Video Perspective) technology route used by Apple’s Vision Pro, Rokid firmly chose the OST (Optical Perspective) route. In the OST scheme, the user sees the real world directly through transparent optics, and virtual information is superimposed on it. This choice sacrifices some of the immersion, but in exchange for a lighter device form, lower power consumption and more natural virtual and real interaction, it is considered a more suitable AR glasses form for all-day wear.
• Leading Advantages of Monocular SLAM:As mentioned earlier, Rokid has achieved industry leadership in achieving high-precision SLAM spatial positioning and gesture interaction with only a single camera. This technological breakthrough is the core of its ability to achieve true AR experience in the form of consumer glasses, and it is also an important technical barrier.

6. Benchmark case XREAL

6.1. Market dominance: the king of “portable giant screens”

• Global sales leader:XREAL has ranked first in the global consumer AR glasses market shipments for many years, occupying an absolute dominant position in the market.
• Precise product-market fit:The core of its success is that it does not try to build an all-round “next-generation computer” in one step, but accurately cuts into the scene of “portable giant screen”. For gamers and audio-visual enthusiasts, a pair of lightweight glasses that can project a 130-inch or larger HD screen anytime, anywhere is an attractive value proposition.

6.2. Product strategy: iteration and user center

• Experience first:XREAL’s products, such as the Air 2 series, always put user experience first. Its design focuses on extreme display effects, excellent sound quality, lightweight design of only 72 grams, and wearing comfort. The product has obtained authoritative certifications from TÜV Rheinland in various aspects such as color accuracy, eye comfort, low blue light and no flicker, which has become a strong endorsement of its high-quality experience.
• Listen to your users:XREAL’s iterative process reflects a strong emphasis on user feedback. A classic case is that the company discovered the huge potential of its glasses to be used with Steam Deck gaming handheld by analyzing user reviews on Amazon, and quickly made this an important marketing and optimization direction, thus capturing its core user base.

6.3. Strategic alliances and ecological expansion

XREAL is actively expanding its application boundaries through strategic collaborations. It cooperates with BMW to explore in-car AR displays, cooperates with Hisense to deepen display technology, and cooperates with many content providers to continuously enrich the games and audio-visual resources on its platform, and gradually transform from a hardware company to a platform company.

7. Future trends of AI glasses

1. Deep integration of AR and AI:Future AI glasses will be a transitional form of AR glasses. AI solves the core pain points of AR content ecology and inconvenient interaction, while AR provides the best visual presentation carrier for AI. “The integration of AR and AI is an epitaxial revolution in human perception systems”, which will be the ultimate goal of the industry.
2. Technology continues to mature:In the next few years, the focus of the industry will continue to focus on breaking through core technology bottlenecks.Lightweight(aim for 40 grams or less),Long battery life(breaking the 4-hour limit) andMicro-LED+ optical waveguideThe yield improvement and cost reduction of optical solutions will be the key variables that determine the speed of industry development.
3. Integration and Rise of Domestic Supply Chains:China’s local supply chain in the field of core components such as chips, optics, and sensors will be further matured and integrated. This will not only continue to drive down product costs, but also become the core advantage of local brands to take the initiative and achieve rapid innovation in global competition.
4. From vertical deep ploughing to horizontal platform:A successful market entry strategy will be “vertical first, then horizontal”. Brands first need to establish a solid base and loyal user base in a high-value niche (such as gaming, industry, translation), and then gradually build a horizontal application platform with broader appeal based on this.
5. Ecological competition:With the maturity of hardware, the future competition will shift to application ecology and content services, and whoever can build a strong developer ecosystem and rich application scenarios will win the next stage of competition.

OK, the above is the full text of AI glasses research, for AI hardware, I will continue to pay attention and analysis, I firmly believe that AI products integrating software and hardware in the future are more promising fields, welcome to follow me.