According to the Zhitong Finance APP, Guosen Securities has released a research report stating that the global AI smart glasses market is experiencing explosive growth, with sales expected to reach 600,000 units in Q1 2025, a year-on-year increase of 216%. As tech giants like Meta, Xiaomi, and Huawei enter the market, industry competition is becoming increasingly fierce. The report points out that the main control SoC chip accounts for about 30% of the overall cost, and its performance directly determines the differences in product experience, while the dynamic stabilization and low power consumption characteristics of the ISP module are key factors affecting imaging quality. A system-level low-power SoC may be the optimal solution, with domestic chips providing a rich array of options for the market.
<h2>The main viewpoints of Guosen Securities are as follows:</h2>
The sales prospects for AI glasses are broad, with brand manufacturers concentrating their layouts
According to Wellsenn XR data, global A1 smart glasses sales are expected to reach 600,000 units in Q1 2025, a year-on-year increase of 216%. It is estimated that global AI sales will reach 5.5 million units in 2025, with a CAGR of 97.4% over the next six years. In September 2023, after Meta-Rayban released AI glasses with shooting capabilities, sales quickly surpassed one million pairs in 2024. Subsequently, domestic AR/VR brand manufacturers, mobile phone manufacturers, and internet companies have all begun to layout AI glasses products, such as the Shanjiji Paipai Mirror and Thunderbird V3, which have received considerable attention. With mobile phone brands like Xiaomi, Huawei, vivo, and Transsion entering the market, competition is expected to be fierce in the future. Currently, according to incomplete statistics from mainstream media, there are already over 60 manufacturers researching AI smart glasses in the market. The firm believes that among the six main types of participants, smartphone manufacturers, XR brand manufacturers, and internet companies have advantages.
The main control SoC accounts for about 30% of the overall BOM, and the ISP module determines the imaging effect of AI glasses
The performance of the SoC in AI glasses determines the user experience to some extent and is one of the key differentiators of AI glasses. Currently, the main control chip accounts for about 30% of the overall cost. Taking the RayBan Meta second-generation smart glasses as an example, its BOM is approximately $174, with the main control chip Qualcomm AR1 accounting for as much as 31.6% of the value. According to estimates from the Wellsenn report, Xiaomi is expected to use the Qualcomm AR1 + Hengxuan Technology 2700 solution as the main control, with the main/sub chips accounting for about 30% of the BOM. In addition, for AI glasses, high-performance ISP is a key factor determining the imaging quality. Since the usage environment for wearers is often dynamic, the requirements for dynamic stabilization are high. At the same time, the ISP chip must meet low power consumption requirements to extend battery life and satisfy long-term wear needs. Therefore, dynamic stabilization and low power consumption are particularly critical for ISP chips used in AI glasses.
Three types of solutions balance performance and power consumption, and system-level low-power SoC may be the optimal solution
Currently, the mainstream SoC solutions for AI glasses mainly include the following three types: 1) System-level SoC single-chip solutions that integrate CPU, GPU, ISP, DSP, WiFi/BT, and other modules, such as Qualcomm AR1 Gen1; 2) System-level SoC + co-processor dual-chip solutions, such as Qualcomm AR1 + Hengxuan 2700; 3) Main control SoC + ISP/BT dual-chip solutions, such as BES2800 + SSC309QL
Currently, Qualcomm's AR1, which uses a 4nm process, is the main choice for many manufacturers. In 2025, it will also see an iterative update, with the new version AR1 Gen2 expected to upgrade its process from 4nm to 3nm. In terms of domestic chips, numerous products such as Ziguang Zhanrui W517, Hengxuan Technology 2800, and Allwinner Technology V821 have emerged, each with advantages in size, performance, and power consumption, providing a rich array of options for the market.
Risk Warning: Risks of AI glasses demand falling short of expectations, risks of AI penetration rate improvement not meeting expectations, risks of intensified industry competition, risks of limited production capacity or geopolitical risks, etc

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HUAWEI

Guosen Securities released a research report indicating that the global AI smart glasses market is experiencing explosive growth, with sales expected to reach 600,000 units by 2025, a year-on-year increase of 216%. With the entry of tech giants like Meta, Xiaomi, and Huawei, industry competition is intensifying. The main control SoC chip accounts for 30% of the total cost, and its performance directly affects product experience, while the dynamic stabilization and low power consumption characteristics of the ISP module are key to imaging quality. The CAGR over the next six years is expected to reach 97.4%

- Guosen Securities reports that the global AI smart glasses market is experiencing explosive growth, with Q1 2025 sales projected to reach 600,000 units, a 216% increase year-on-year.  
- Major tech companies like Meta, Xiaomi, and Huawei are entering the market, intensifying competition, while the performance of SoC chips and ISP modules significantly impacts product quality.  
- The report anticipates a total of 5.5 million units sold globally in 2025, with a CAGR of 97.4% over the next six years, despite potential risks such as lower-than-expected demand and increased competition.

Zhitong

Guosen Securities: The Year of Explosion for New AI Glasses, Domestic SoC Main Control Emerges