A decade ago, the release of the Apple Watch redefined the concept of a watch, transforming it from a simple timekeeping device into a versatile tool for health management, payments, navigation, and communication. Now, AI’s rise is reshaping another wearable technology: smart glasses. These devices, which integrate advanced technologies such as augmented reality (AR), artificial intelligence (AI), and mixed reality (MR), are claiming that they enhance user interactions with both the digital and physical worlds. And in turn, global tech companies have increasingly turned their focus to the AI-powered smart glasses market in recent years. At its Connect conference in September, Meta unveiled its Ray-Ban Meta smart glasses, and other industry giants such as Apple, Google, Samsung, and Amazon have also signaled plans to enter the space.
The trend is mirrored in China. Recently, AR manufacturer Rokid teamed up with fashion eyewear brand Bolon to launch AR+AI glasses. Earlier this month, Baidu announced its Xiaodu AI glasses, slated for release in the first half of next year. Additionally, reports suggest that Xiaomi is collaborating with GoerTek to develop a new generation of AI glasses aimed at competing directly with Ray-Ban Meta, with a launch expected in the second quarter of 2025. Companies such as Huawei and Thunderbird have also introduced AI glasses to the market. This brings the industry to a crucial moment: will AI glasses unlock the next wave of innovation, or are they destined to remain a niche product?
Why AI glasses?
Despite the hype surrounding AI’s transformative potential across multiple industries, a significant gap remains between expected revenues from AI infrastructure investments and the actual growth of AI-driven ecosystems. Since ChatGPT ignited an AI arms race, tech companies have invested tens of billions of dollars in data centers and semiconductors to support large language models. As a result, businesses operating in the AI space are increasingly aware of the urgency to develop practical applications for these AI models.
AI-powered smart glasses stand out as a potentially profitable avenue. During Siggraph 2024, an annual technology conference, Meta CEO Mark Zuckerberg, alongside Nvidia CEO Jensen Huang, expressed his belief that AI-driven smart glasses have the potential to become the next major breakthrough in technology.
Smart glasses’ wearability and broad consumer acceptance make them an appealing choice for tech companies. A significant factor driving interest is the massive global population with vision impairments – over 2.2 billion people, according to the World Health Organization’s World Report on Vision published in Oct. 2019. The global smart glasses market was estimated at USD 1.2 billion in 2022 and is likely to grow at a compound annual growth rate of 27.1% from 2023 to 2030. In China alone, the eyewear market is expanding rapidly. A white paper published in 2022 by iResearch Inc. estimates that the retail market for eyeglass frames in China will reach RMB 37.6 billion ($5.2 billion USD) by 2025.
Lessons from Magic Leap
Even with the vast market potential, the consequences of overestimating the speed at which technology can merge with market demand are foreseeable. Magic Leap, once touted as the next big thing in augmented reality, offers a valuable lesson for the current wave of firms chasing smart glasses development. Founded in 2010, the company generated massive excitement with its vision for immersive AR experiences, backed by high-profile investors and billions of dollars in funding. However, despite its bold promises, Magic Leap has faced significant hurdles in achieving commercial success.
Initially marketed as a revolutionary device for both entertainment and enterprise use, Magic Leap’s first-generation AR headset failed to deliver on its promises. The company’s struggles have been compounded by internal challenges, including leadership changes and an evolving business strategy that now focuses on licensing its AR optics technology to other companies, rather than pushing out consumer-facing products.
This pivot highlights a key challenge in the smart glasses market: while the technology shows great potential, it has yet to find a balance between innovation and practical, everyday use. As smart glasses manufacturers like Meta, Apple, and Xiaomi continue to explore the space, they will need to heed the lessons from Magic Leap’s experience. These include managing consumer expectations, refining hardware design, and ensuring that the product delivers a true, practical value to the user.
Looking ahead: what next?
Several obstacles still hinder smart glasses from becoming mainstream technology. One primary challenge lies in hardware limitations, such as short battery life and bulky, uncomfortable designs, which affect their usability and long-term appeal. Leading players are addressing these issues in various ways: Xiaomi has focused on lightweight designs, Rokid is prioritizing user privacy, and Baidu is tackling battery efficiency.
Cost remains another critical barrier. Advanced components such as high-resolution displays, cameras, and sensors significantly increase production expenses, making many models unaffordable for the average consumer. As of now, no company aside from Meta has made a substantial breakthrough in capturing the market, leaving the path to mass adoption both uncertain and full of opportunity.
