(Yicai) March 28 -- Xreal Technology, a Chinese maker of augmented reality glasses, aims to develop a CNY1 trillion (USD138 billion) industry ecosystem in Shanghai, according to its chief executive.

"We hope to open up a trillion-Chinese yuan new industry ecosystem in Shanghai's Pudong New Area through AR glasses," Xu Chi said at the 2025 Pudong New Area Investment Promotion Conference yesterday.

AR glasses will become the next main terminal after smartphones, Xu noted, adding that Xreal expects its shipment volume to range between 300,000 to 500,000 units this year, exceeding one million between 2022 and 2025.

In the next five years, Xreal will leverage the strengths of Shanghai to achieve exponential growth in both production capacity and market presence, Xu predicted.

Xreal established technical cooperation and product co-creation partnerships with two Shanghai-based entities in the past year -- Shanghai Shiya Information Technology and ShanghaiTech University.

Last month, it signed an artificial intelligence/AR industrial chain deal with Zhejiang Jingsheng Mechanical & Electrical, Shanghai Longcheer Technology, and North Ocean Photonics to jointly build an open ecosystem, establish complete manufacturing capabilities, and develop a green intelligent manufacturing system with the ability to formulate international standards.

Founded in Silicon Valley, Xreal is a global leader in researching, designing, and manufacturing consumer AR glasses. As the world's first AR company with self-developed chip products, Xreal ranked first by AR glass sales on Amazon for the past three years, achieving a global market share of over 37 percent in 2024.

AR glass sales in China reached 286,000 units last year, according to a report by iResearch. Meizu, Rokid, Xreal, Falcon Innovations Technology (Shenzhen), and Inmo were the four main players in the Chinese market.

Editor: Futura Costaglione