Imagine a mesmerizing experience where, while visiting a renowned architectural marvel, you merely tap the frame of your eyeglasses and instantly witness a captivating timeline displaying the evolution of that structure alongside intriguing little-known factsAs you stroll along, your journey continues into a cozy café, where the menu is no longer confined to flat paper but hovers beautifully in midairYou order a latte, and with the glasses' built-in seamless payment feature, completing the transaction feels as effortless as a thought, with no need to touch any material objects.

Such a vivid scenario represents the potential of augmented reality (AR) glasses, which are currently being pursued vigorously by technology companies worldwide, turning this vision of the future into a tangible realityThe founder and CEO of XREAL, a leading AR glasses company based in China, Xu Chi, recently remarked in a public forum, "Over the next two years, artificial intelligence (AI) will present opportunities of a scale comparable to the Industrial Revolution, with AR potentially standing as one of the best mediums for AI."

Established in 2017 in Beijing, XREAL (originally known as Nreal) has pioneered research in the AR glasses sector in China, releasing innovative products such as the consumer-oriented XREAL Light, followed by the developer version, the second-generation XREAL Air, and the latest iteration, the XREAL One, all designed to redefine how we interact with digital content in real-world contexts.

The experimentation with AR technology dates back to the 1990s in aerospace applications

However, it was not until 2012, when Google unveiled the first iteration of Google Glass at the Google I/O conference, that a significant spotlight was cast upon AR/VR developmentWhile the original vision for Google Glass remained unfulfilled, it ignited a global passion for AR technology, inspiring countless innovations thereafter.

The current surge in AR, fueled by advancements in AI, represents an unprecedented growth phaseMarket researchers from Verified Market Research anticipate a dramatic escalation in the global AR/VR market from 2024 to 2031, projecting a staggering compound annual growth rate of 31.7%. The market's value is expected to soar from $23.73 billion in 2024 to an astonishing $214.82 billion by 2031, illustrating the vast potential of the AR sector.

As 2024 approaches its culmination, the competitive landscape of AR technology is intensifying, with tech giants, consumer electronics companies, and smart hardware innovators all vying for prime market positioning by launching their AR glasses

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This bustling activity vividly encapsulates the fervor surrounding the burgeoning AR glasses market.

Yet, amidst this tidal wave of AR enthusiasm, a significant obstacle looms: convincing consumers to invest thousands in AR products that still lack a robust content ecosystem proves to be a daunting challengeA pressing question arises: when will AR glasses experience their "iPhone moment," igniting a genuine consumer frenzy?

On December 10, XREAL officially launched the new generation of consumer-grade AR glasses, the XREAL One, priced at 3,299 yuanBy the evening of December 12, the product had sold over a thousand units on Tmall's official flagship storeXu Chi expressed optimism for sales: "While the chip development process took longer than expected, and the product launched a bit late, this will positively impact our performance next year with at least double the sales

With a bit of luck, we may even achieve three times this year's performanceWe conservatively predict sales exceeding 600,000 units for this single product."

Looking back a month to November 18, a fellow contender in the AR space, Rokid, released its latest AI + AR glasses in collaboration with BOLONThese glasses, which boast functionalities such as photography, calls, and translations, integrate AI capacities, allowing tasks like object recognition, textual translation, and solving math problems to be executed effortlesslyPriced at 2,499 yuan, they are expected to hit the market in the second quarter of 2025.

Rokid, established in 2014 and based in Hangzhou, China, began as a voice assistant and smart speaker development companyIt forayed into the AR realm in 2018, unveiling products such as Rokid Air and Rokid StationUnlike most AR glasses in a split design, Rokid’s latest offering takes on a shape akin to conventional eyewear, equipped with a camera to support HD photography and video recording

His founder, Zhu Mingming, highlighted that both AI and AR will significantly alter human lifestyles, ultimately converging into a singular entity, asserting that AR stands as the optimal vessel for AI.

The ambition to innovate is not confined to XREAL and RokidAt the end of October, AR manufacturer INMO Technology introduced the world’s first all-in-one AR glasses capable of 1080P resolution with the INMO AIR3, alongside the industry’s first simultaneous translation glasses, the INMO GO2. The company envisions a future where INMO AIR gadgets might replace tablets within two years and upend smartphones within five years.

Simultaneously, by late October, Thunderbirds Innovation, emerging from TCL's innovative labs, launched two AR glasses: the Thunderbird Air 3, priced at 1,699 yuan, and the Thunderbird Air 2 Anniversary Champion Edition at 1,399 yuan

According to CEO Li Hongwei, the AR industry has transitioned past its bubble phase and is now in a critical juncture, poised to enter the mass market poised for an explosion of interest"AI + AR represents a new universal computing platform, ushering in the next ‘iPhone moment’,” Li stated.

In truth, AR glasses have developed as a core medium of AR/VR technology for many years even preceding the current AI boomSince the introduction of Google Glass in 2012, the evolution of AR glasses has spanned more than a decadeNonetheless, a genuine shift in public perception occurred in September 2023 when Meta partnered with Ray-Ban, the century-old eyewear brand, to launch the Ray-Ban Meta smart glasses equipped with Qualcomm Snapdragon AR1 Gen 1 chip, breaking a sales milestone of over 1 million units by May 2024.

This phenomenon has cast light on the prospect that AR, as a technology that overlays digital content onto the real world, could indeed serve as a potent medium for AI

Consequently, AR glasses integrated with AI capabilities surged in popularity this yearThe April launch of the upgraded second-generation Ray-Ban Meta smart glasses by Meta and Ray-Ban demonstrated enhanced AI functionalities powered by an integrated large model, facilitating intelligent conversations and diverse interactive experiencesFollowing suit, major tech players like Huawei, Baidu, and Xiaomi unveiled or launched their AI glasses productsBy late September, both Snap and Meta introduced their latest pairs of AR glasses, indicating a new cycle in the AR marketAt the recent Meta Connect conference, founder Mark Zuckerberg revealed that Meta had invested $5 billion in developing AR glasses, fully believing they would ultimately replace smartphones.

Samsung is preparing to join this fierce competitive landscape as wellMarket speculation suggests that the South Korean electronics giant will introduce its first AR glasses in the third quarter of 2025. Similar to Meta's glasses, these devices are expected to feature Qualcomm’s Snapdragon AR1 chip tailored for AR, also supporting Google’s Gemini AI model, with an initial production run of 500,000 units planned.

In August of this year, TrendForce released an encouraging market outlook, predicting that due to proactive positioning by AR device manufacturers and the flourishing AI technology and application ecosystem, the global shipment of AR devices is projected to hit 25.5 million units by 2030, reflecting an impressive annual growth rate of 67% from 2023 to 2030.

Focusing on the Chinese market, a September report from IDC provided extensive insights

Despite a slight reduction in total shipments of AR/VR headsets to 233,000 units in the first half of 2024—down 29.1% year on year—the market remains vibrant with innovation, particularly within AR and immersive augmented reality (ER) sectors, which exhibited robust growthSpecifically, AR device shipments hit 20,000 units, achieving a remarkable 101.7% year-on-year increase, while ER shipped 102,000 units, reflecting a 75.4% riseOn the contrary, mixed reality (MR) and VR devices faced market challenges, with shipments plummeting 49.3% and 65.5%, respectively.

The burgeoning enthusiasm for AR technology has captivated a multitude of investorsAccording to IT Juzi data, by September 10, 2024, there were 21 funding events in China's AR/VR industry, with estimated capital inflow surging to approximately 2.3 billion yuan, displaying steady growth as compared to the same period last year

Notably, in January, XREAL secured $60 million in strategic financing, while an AR glasses manufacturer named “Multi-screen Future,” founded in 2022, also raised several million dollars in the new round of funding in AugustRokid attracted nearly half a billion yuan and 100 million yuan in financing in January and September of 2024, respectivelyFurthermore, Thunderbirds Innovation successfully raised several rounds of financing amounting to over a billion yuan within just half a year.

Even though the market is bustling with new products and investments, the AR glasses sector arguably remains in its nascent developmental stageSignificantly, while technology progresses and product diversity expands, consumer awareness and acceptance of AR glasses still require enhancementCultivating consumer habits will take time and effort.

As a digital product enthusiast, Xue Chengcheng (pseudonym) exhibits a keen interest and curiosity towards emerging technologies

This November, as the AR glasses market brimmed with new launches, he promptly ordered two distinct AR glasses from different brands, eager to delve into the innovative experiences offered by cutting-edge technologyHowever, regret ensued as both pairs of glasses ultimately fell short of his expectations, leading to their returns.

Xue stated that price was not the principal reason for his decision to return the productsIn fact, as competition heightens, many businesses now introduce AR glasses at more accessible prices compared to the prohibitively expensive smartphones, making these glasses more consumer-friendlyInstead, what disappointed him was the surprisingly limited range of application scenarios for the AR glasses, despite their affordability.

"I’ve attempted using them to watch videos, play games, and even explore some so-called AR applications, but they felt somewhat underwhelming," Xue admitted, "Currently, most AR glasses available are still in a phase of functional exploration, with very few applications capable of truly impressing or ensuring long-term usage.”

“To achieve the ‘iPhone moment,’ AR glasses must first make breakthroughs at the hardware level to attract more content creators to develop killer apps

We are still in the first half; the second half hasn't commenced yetIn this first half, when current AI or AR glasses fail to deliver an improved experience, industry players need to innovate independently,” Xu Chi stressedHe emphasizes that the essential competition in this AR glasses realm is centered on the depth of research and development and technological innovations rather than superficial marketing tactics.

Discussions within the industry underscore a prevalent belief that content and ecosystem establishment remain crucial impediments to AR glasses' developmentAnalysts predict that over the next three to five years, AR glasses will gradually penetrate the mass market, leading to rapid growth once this momentum sets in, although widespread adoption will require a more extended accumulation period.

BOC International presented an optimistic outlook regarding AR glasses, highlighting that challenges such as mass production difficulties and insufficient user demand are progressively being addressed

They foresee that the market for AR glasses could potentially reach a billion units, metamorphosing into the next generation of computing terminalsAnalysts liken Meta's forthcoming first-generation AR glasses, expected in 2025, to the initial iPhone of the smartphone eraBy 2027, Apple’s anticipated AR glasses, potentially akin to the iPhone 4, could catalyze a rapid development phase for the entire industry.

As competition among AR glasses manufacturers intensifies, numerous companies are strategically lowering product prices to capture market shareFor instance, Thunderbirds Innovation previously drew consumer attention with its Air 2s AR glasses priced at 2,698 yuanBy the end of October, the latest model, Air 3, was priced at 1,699 yuanSimilarly, Rokid reduced the price of its recently released Rokid Glasses to 2,499 yuan, lower than the initial price point of 2,999 yuan for its previous generation, Rokid Max.