Huaxin Securities released a research report saying that recently, various technology companies have intensively launched AI smart glasses, and the implementation of end-side AI applications is accelerating. According to the report of Wellsenn XR, it is expected that after 2030, the AI+AR smart glasses industry will enter a period of rapid development; By 2035, AI+AR smart glasses will eventually replace traditional smart glasses, and the global sales of AI+AR smart glasses will reach 1.4 billion units, which is comparable to the scale of smartphones and become the next generation of general-purpose computing platforms and terminals. At present, the competition pattern of the AI glasses market has not yet formed a stable head effect, and a number of domestic listed companies are laying out the upstream and downstream of the AI glasses industry chain, and have formed a relatively complete industrial ecology.

The main views of Huaxin Securities are as follows:

In the second half of the year, new AI glasses products exploded, and many technology companies actively laid out

In September 2024, Meta and Ray-Ban once again unveiled a new limited edition Wayfarer smart glasses at the Connect conference, which cleverly blends a computer system with a series of built-in sensors, microphones and speakers in the frame, and significantly improves the functionality of integrating Meta AI. Domestic brands are also following suit, Baidu has also entered the AI glasses, and its Xiaodu Technology released the world's first native Xiaodu AI glasses equipped with a large Chinese model in November. Rokid has released an AR+AI glasses based on optical waveguide technology, which has advantages over mainstream Birdbath solutions in terms of clarity, viewing angle, and volume.

In addition, KTC, a brand of KTC Technology, released a teaser poster announcing the upcoming release of AI interactive glasses, Yingmu Technology released two new smart glasses products INMO AIR3 and INMO GO2, Emdoor Information announced a number of new products such as the self-developed AI glasses full-link solution SW3010, and XREAL officially announced a new AR glasses equipped with a self-developed custom chip X1. Various technology companies are intensively launching AI smart glasses, and the implementation of end-side AI applications is accelerating.

AI glasses have become a new outlet in the smart wearable market, or lead the next generation of terminal revolution

The maturity and innovation of technology have laid the foundation for the rise of AI glasses, and the growth of market demand has promoted the rapid development of AI glasses. AI glasses not only have virtual visual enhancement effects, but also realize real-time analysis of user behavior and environment through the integration of artificial intelligence algorithms, providing more accurate and personalized services. AI glasses also improve comfort and durability in terms of design and portability, extending the wearing time. At the same time, it provides a more natural and convenient interactive experience innovation through various sensing technologies.

As the cost gradually decreases, AI glasses are expected to be further widely used. According to the report of Wellsenn XR, it is expected that after 2030, the AI+AR smart glasses industry will enter a period of rapid development; By 2035, AI+AR smart glasses will eventually replace traditional smart glasses, and the global sales of AI+AR smart glasses will reach 1.4 billion units, which is comparable to the scale of smartphones and become the next generation of general-purpose computing platforms and terminals.

The market ushered in the "Battle of Hundred Mirrors", and the industrial ecology accelerated its formation

At present, the competitive landscape of the AI glasses market has not yet formed a stable head effect, and many companies are actively developing and promoting AI glasses products. The AI glasses industry chain covers multiple links such as optics, display, chips, sensors, and foundry. A number of listed companies in China are laying out the upstream and downstream of the AI glasses industry chain, and have formed a relatively complete industrial ecology.

In terms of optics, the optical scheme of optical waveguide has received extensive attention. In terms of acoustics, audio solutions improve the quality of user voice interaction; In terms of display, advanced technologies such as Micro LED are applied to AI glasses; In terms of chips, SoC chips provide powerful computing and processing power for AI glasses; OEMs and private brands integrate optical, acoustic, display and chip technologies into AI glasses products through independent R&D and manufacturing.

It is recommended to pay attention to the AI glasses industry chain

Bose Glasses (300622.SZ), Emdoor Information (001314.SZ), Guoguang Electric (002045.SZ), KTC Technology (001308.SZ), Edifier (002351.SZ), Tianjian (000090.SZ), Hengxuan Technology (688608.SH), Zhongke Lanxun (688332.SH), Torch Core Technology (688049.SH), Rockchip Micro (603893), Mingyue Lens ( 301101.SZ), Goertek (002241.SZ).

Risk Warning

Downstream demand is less than expected, new product research and development is less than expected, industry prosperity is less than expected, market competition pattern deteriorates, and the performance of recommended targets is less than expected.