---
title: "Why are home appliance giants venturing into \"AI glasses\"?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/270810334.md"
description: "The AI glasses market has enormous potential, with technological breakthroughs driving rapid development. AI + AR glasses meet consumer demand, with global eyewear sales potential reaching 145 million pairs and a market size exceeding 100 billion RMB. The value of the industry chain is concentrated in optics, chips, and OS systems. The functions of AI glasses are evolving towards hardware miniaturization, AI interaction upgrades, ecological integration, and metaverse socialization. Home appliance companies are leveraging their advantages to enter the AI glasses market, such as TCL Electronics investing in Thunderbird Innovation"
datetime: "2025-12-26T01:35:44.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/270810334.md)
  - [en](https://longbridge.com/en/news/270810334.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/270810334.md)
---

# Why are home appliance giants venturing into "AI glasses"?

The potential market size for AI glasses is large. Firstly, consumers have a demand for products with AI capabilities. Mature consumer markets pursue "emotional value externalization," while developing markets require "productivity and tool internalization." AI + AR glasses are the perfect carrier for AI, capable of all-weather perception based on sound and vision. Currently, with technological breakthroughs, AI glasses are rapidly scaling up. First, the popularization of small models on the edge adapts to low computing power and high privacy scenarios. Second, the computing power of wearable device chips has improved, enabling natural interaction with vertical small models. Globally, the annual sales of traditional glasses are about 2.3 billion pairs, excluding 850 million pairs of sunglasses, leaving 1.45 billion pairs of other glasses. If the penetration rate of AI glasses reaches 10% of the 1.45 billion pairs of glasses, global shipments are expected to reach 145 million pairs, with a market size exceeding 100 billion RMB.

AI glasses products are still rapidly iterating, and the value of the industrial chain is concentrated in the optical, chip, and OS system parts. With the improvement of software and hardware technology and the richness of content, AI glasses will see greater enhancements in content and interaction experience. Currently, the functions of AI glasses are evolving in the following four directions: miniaturization of hardware and performance improvement, AI-driven interaction upgrades, ecosystem integration, and metaverse and social functions. In the future, holographic AR or higher-level AI glasses product forms may emerge. For cost breakdown of display-type AI glasses, the optical display module (such as waveguides) accounts for about 35%-45%, the main control AI chip accounts for 20%-30%, and sensors and batteries together account for about 15%, with the remainder being structural components and software. In addition, giants with OS ecosystems will seize the system value of AI glasses. Taking smartphones as an example, Apple has built a closed-loop ecosystem of "hardware + software + services" through iOS, not only mastering the distribution rights and revenue-sharing rules of the App Store but also relying on the system to connect multiple terminals such as phones, tablets, and watches, capturing most of the profits in the smartphone industry; Google, on the other hand, quickly occupied the mid-to-low-end market through the open-source strategy of Android, achieving commercial monetization through advertising and application services.

**Home appliance companies leverage their advantages to enter the AI glasses market.**

① On the brand side, TCL Electronics invested in Thunder Innovation, which independently developed the core optical module's light engine + waveguide, relying on TCL Huaxing's semiconductor-level photolithography/etching equipment and processes to directly support the high-precision processing of Thunder's single-layer grating. Combining TCL Huaxing's MicroLED micro-screen technology with Thunder's independently developed single-layer waveguide structure, they created a binocular full-color MicroLED waveguide solution; Hisense V.T. launched its own brand AI glasses Vidda G11 smart glasses and MR V3 Pro, announcing technical integration and product development with XREAL, where Hisense provides display technology and AI large model capabilities, while XREAL offers optical engines and spatial computing technology.

② On the OEM side, Biyu Co., Ltd. strategically invested in Shanghai Lipai Guangjing, binding the core technology of geometric waveguides (molecular bonding, two-dimensional expansion) and attempting to transfer home appliance manufacturing capabilities to operate the assembly business of AR glasses, relying on Lipai's customer resources to expand OEM cooperation ③ On the optical machine side, Appotronics' AI/AR glasses business focuses on upstream core optical components (LCoS optical machine + optical waveguide solutions), leveraging the same-source technology from traditional businesses to directly reuse ALPD laser light sources, polarization control, and optical machine miniaturization technology in AR LCoS optical machines and optical waveguide solutions, with a procurement order of 10,000 units from Gu Dong Intelligent.

## The AI Glasses Sector Heats Up, Home Appliance Manufacturers Compete to Enter

With the effect of Meta AI glasses, domestic manufacturers are joining the exploration and competition in the AI glasses market, including home appliance companies:

-   TCL Electronics: Its subsidiary ThunderBird Innovation has launched multiple AI+AR glasses products.
-   Hisense V.T.: Not only has it completed customized development of AI glasses for multiple clients, but it also officially launched the Vidda G11 smart glasses in October 2025. On February 25, 2025, Hisense V.T. reached a deep strategic cooperation with AR leader XREAL, covering key areas such as product development, optical display, AI large models, and global sales in the AI glasses field.
-   Biyin Co., Ltd.: Invested in Shanghai Litai Optical Crystal to seize the core optical waveguide technology field for AI glasses. In November 2025, Biyin Co., Ltd. revealed that it has designed an AR glasses complete carrier in the China-Italy Smart Home Appliance Industrial Park.
-   Appotronics: Launched multiple core optical machine products compatible with AI/AR glasses in 2025, jointly releasing the Dragonfly G1 optical machine with various smart partners.

## Technological Transformation Drives Industry Growth, AI Glasses Have Great Scale Potential

**There is a demand for AI glasses, with significant differences in consumer tendencies influenced by environmental and cultural factors in major global consumption regions.** Mature consumer markets pursue "emotional value," for example, Meta users pay for selfies; developing markets demand "productivity and tool-based," with Chinese users paying for efficiency.

**AI+AR glasses are the perfect carrier for AI.** AI understands users and the world; AI glasses are products that are naturally close to the main senses, serving as a visually dominant channel for information acquisition, capable of "hearing what you hear and seeing what you see," and possessing the attribute of "all-day companionship," freeing hands from feeling and interaction.

**With technological breakthroughs, AI glasses have entered the stage of mass consumer products.** By the end of 2024, the cumulative sales of smart glasses in collaboration between Meta and Ray-Ban will exceed 2 million pairs, validating the success of the "no screen, strong AI, lightweight" path. This marks the official crossing of smart glasses from "geek toys" to the "mass consumer product" stage.

**The development of AI glasses was previously limited by technology, but current technological breakthroughs are driving rapid development.** It is expected that by 2025, the shipment volume of the AI glasses industry will exceed 10 million pairs, with Meta accounting for 5 million pairs This increase is mainly due to technological advancements. First, the popularization of small models on the edge, suitable for low computing power and high privacy scenarios. In the past two years, the use of reinforcement learning and knowledge distillation techniques has led to significant capability improvements in small models, enabling functions such as speech recognition, real-time translation, and document summarization, thus facilitating the deployment and application of local AI. Second, the computing power of wearable device chips has improved, allowing vertical small models to achieve natural interaction.

**Outlook on the potential scale of AI glasses:** The global annual sales of traditional glasses are approximately 2.3 billion pairs, excluding 850 million pairs of sunglasses, leaving 1.45 billion pairs of other glasses. If the penetration rate of AI glasses reaches 10% of the 1.45 billion pairs of glasses, global shipments are expected to reach 145 million pairs, with a market size exceeding 100 billion RMB.

In addition, the retail scale of traditional eyewear products in China is large, with a high penetration rate, and many Chinese consumers have a habit of wearing glasses, laying the foundation for the penetration of AI glasses in China. With the rapid increase in demand for functional lenses such as blue light blocking glasses, sunglasses, and reading glasses, it is expected that the retail sales of eyewear products in China will reach RMB 128.3 billion by 2029. From 2019 to 2024, the compound annual growth rate of China's traditional eyewear retail market size is 5%, and it is expected to be 6% from 2024 to 2029.

## **AI glasses products are still rapidly iterating, with optics, chips, and OS ecosystems being valuable segments**

3.1 AI glasses products are rapidly evolving, with continuous improvements in hardware and software, and content continuously enriching

Currently, the forms of AI glasses on the market mainly include audio glasses, camera glasses, single green light waveguide AR glasses, and full-color light waveguide AR glasses. At present, AI glasses products are concentrated in the price range of 2000-3000 RMB, with the main product forms being audio camera glasses and single green light waveguide AR glasses.

**With the improvement of hardware and software technology and the enrichment of content, AI glasses will see greater enhancements in content and interaction experience.** The functions of AI glasses are evolving in four directions: miniaturization and performance enhancement of hardware, AI-driven interaction upgrades, ecosystem integration, and metaverse and social functions. In the future, holographic AR or higher-level AI glasses product forms may emerge 

The hardware value of AI glasses is concentrated in optics and chips, with giants possessing OS ecosystems capturing system value. Overall, the production cost of AI glasses hardware is concentrated in the optics and chip sections. Due to different AI glasses products using various waveguide technologies, chips, and optical machine solutions, the value chain proportions of the products vary. For display-type AI glasses, the optical display module (such as waveguides) accounts for about 35%-45%, the main control AI chip accounts for 20%-30%, sensors and batteries together account for about 15%, with the remainder being structural components and software. For non-display AI shooting glasses, taking Ray-Ban Meta as an example, the chip cost accounts for over 50% of the total device.

In addition, giants with OS ecosystems will capture the system value of AI glasses. This logic is highly similar to the development trajectory of the smartphone industry: during the transition from feature phones to smartphones, hardware manufacturers once dominated the market, but as the iOS and Android mobile OS ecosystems matured, Apple and Google, leveraging their control at the system level, became the core beneficiaries of the industry chain—Apple built a closed-loop ecosystem of "hardware + software + services" through iOS, not only mastering the distribution rights and revenue-sharing rules of the App Store but also relying on the system to connect multiple terminals such as phones, tablets, and watches, capturing most of the profits in the smartphone industry; Google, on the other hand, quickly occupied the mid-to-low-end market through the open-source strategy of Android, achieving commercial monetization through advertising and application services, while hardware manufacturers gradually became "assembly plants," with profit margins continuously compressed.

## Relying on the accumulation of traditional business capabilities, home appliance companies are entering different segments of AI glasses

4.1 Brand side: TCL Electronics invests in Thunderbird Innovation, Hisense V.T. collaborates with XREAL

TCL Electronics invests in Thunderbird Innovation, holding a total of 35% of shares with the founder of TCL Technology. TCL Electronics holds approximately 10.39% through related entities such as Huizhou TCL Mobile Communication and Shenzhen Thunderbird Network Technology, while TCL Technology founder Li Dongsheng, with a 24.83% shareholding ratio, becomes the largest individual shareholder, ensuring that TCL has strategic control over Thunderbird Innovation Thunderbird Innovation's current core AI glasses are divided into three main series (Air, V3, X3 Pro), with clear differences in positioning and functionality. The Air series is "dual-eye non-transparent," focusing on immersive viewing experience without environmental perspective, using a polarized BirdBath optical scheme, paired with a self-developed Peacock light engine and Vision 4000 image quality chip. Its low cost comes from a mature supply chain, focusing on positioning and large-scale integration. The V3/X3 Pro are "transparent," supporting AR interaction and environmental integration. The V3 (including V3 Slim) is an AI glasses product that emphasizes first-person AI photography + smart voice assistant, rather than a display-type viewing/AR product. The X3 Pro (true AR flagship) is priced high (starting at 7,649 yuan), targeting technology development and developers, using diffraction waveguide technology.

Thunderbird Innovation's core optical module features a self-developed light engine + waveguide, setting a display benchmark. ① Firefly full-color MicroLED light engine (core of X3 Pro): self-developed and produced, with a volume of only 0.36cc (the industry's smallest mass-produced full-color MicroLED light engine), integrating red/green/blue three-color micro-displays, a total of 6 for dual-eye, paired with self-developed ultra-micro lens focusing, achieving a peak brightness of 6000 nits and 95% suppression of rainbow patterns. ② RayNeo single-layer etched diffraction waveguide (high-end display solution for X3 Pro): the world's first mass-producible surface relief grating etched waveguide, developed in collaboration with Applied Materials using nano-lithography technology, replacing traditional low-efficiency nano-imprinting, achieving dual-eye full-color, 43-inch aerial transparent screen, compatible with a 76g ultra-light body, balancing light transmittance and display clarity. ③ Peacock light engine + Birdbath optical system (core of Air series viewing): self-developed Birdbath optical design, combined with Micro-OLED dual-layer screen (Air4), achieving a refresh rate of 120Hz, a contrast ratio of 200,000:1, and 98% P3 color gamut, optimizing EyeBox and MTF parameters through self-developed optical components to create an immersive viewing experience.

Thunderbird Innovation's AI glasses collaborate with TCL Group's traditional business supply chain: ① Single-layer diffraction waveguide development: TCL Huaxing's semiconductor-level lithography etching equipment and processes directly support the high-precision processing of Thunderbird's single-layer grating; jointly developed waveguide coupling optimization algorithms solve the problem of large-angle light transmission, achieving a balance between a wide field of view and a thin form factor. ② MicroLED waveguide integration: TCL Huaxing's MicroLED micro-display technology combined with Thunderbird's self-developed single-layer waveguide architecture creates a dual-eye full-color MicroLED waveguide solution, making X3 Pro one of the world's smallest mass-producible robots. ③ Yield improvement for mass production: directly adopting TCL's global smart terminal quality control system and supply chain collaboration capabilities, based on the rapid adaptation of waveguide technology from R&D to mass production in high-resolution electronic products, significantly shortening the yield ramp-up cycle In addition, Hisense V.T. has launched its own brand of AI glasses. The AI glasses released under the company's own brand mainly include Vidda G11 smart glasses and MR V3 Pro, as well as AI photography glasses (custom developed) aimed at overseas markets and high-end AR/AI glasses co-developed with XREAL (pending mass production). Vidda G11 is a lightweight smart audio AI glasses that does not have shooting and display functions. MR V3 Pro is an industry-level MR/AI glasses suitable for education, medical, and industrial applications.

Hisense V.T. and XREAL have integrated their first technology and product development. Hisense provides display technology and AI large model capabilities, while XREAL offers optical engines and spatial computing technology. The two parties jointly develop high-end AR/AI glasses, achieving strategic cooperation in channel synergy and ecological co-construction.

4.2 On the OEM side: Biyi Co., Ltd. strategically invests in Shanghai Lihui Optoelectronics to build AR glasses assembly capabilities.

Biyi Co., Ltd. strategically invests in Shanghai Lihui Optoelectronics to address the "bottleneck" in optical module production. In its 2024 Series B round, the company invested 30 million yuan in Shanghai Lihui Optoelectronics, holding approximately 5.38% of the shares, binding the core technology of geometric waveguides (molecular bonding, two-dimensional beam expansion). Lihui is one of the few manufacturers in China to achieve mass production of geometric waveguides, supplying Rokid, INMO, and others.

Biyi Co., Ltd. attempts to transfer its home appliance manufacturing capabilities to operate AR glasses assembly business, leveraging Lihui's customer resources to expand OEM cooperation. The company has set up an assembly line for AR glasses and is promoting small-batch assembly trial production through its wholly-owned subsidiary Biyi Intelligent Manufacturing, transferring the precision assembly and quality control capabilities from home appliance manufacturing.

**The processing and manufacturing pain points of AI glasses are as follows:**

① Scratching issues: The lenses, frames, and other components of AI smart glasses generate friction scratches during processing and multi-process transitions due to differences in material hardness. Existing processes lack full-process protective designs, leading to a high scratch rate, which affects appearance and may reduce optical performance, causing user dissatisfaction.

② Glue dispensing process issues: The irregular structure (such as curved splicing and irregular seams) and multi-material contact surfaces of AI smart glasses require extremely high precision in glue dispensing. Existing equipment struggles to adapt to complex profiles, leading to uneven glue application and leakage issues, resulting in insufficient bonding strength or appearance defects, which affect sealing and exceed appearance quality standards.

③ Anti-shake function: The anti-shake function of AI smart glasses relies on the collaboration and calibration of IMU and optical modules. Manual calibration is affected by operational methods and environmental factors, combined with fluctuations in component batches, leading to significant parameter deviations. The anti-shake effect of finished products varies greatly, severely impacting the photo and video experience.

4.3 On the optical machine side: Appotronics focuses on LCoS optical machines + waveguide solutions and signs a procurement order for 10,000 units with Gudong Intelligent.

**Appotronics' AI/AR glasses business focuses on upstream core optical components (LCoS optical machines + waveguide solutions).** The company primarily adopts a laser + LCoS technology route to provide optical machines and optical solutions for ODM/OEM manufacturers and smart wearable brands, without its own complete machine brand. The company plans to launch key products and a "one-to-two" solution in September 2025, has received the first batch of orders, and is advancing mass production **The company has an LCoS AR optical engine production capacity of 500,000 units and has signed a procurement order for 10,000 units with Gudong Intelligent.** The company's LCoS AR optical engines include the Dragonfly G1 and Rainbow C1, with an annual production capacity of 500,000 units per production line, and the production line is ready. The company has signed a procurement order for 10,000 units with Gudong Intelligent, and the Rainbow C1 is in the pre-mass production stage, capable of quickly responding to bulk demand. Guangfeng is responsible for the production of the optical engines, while partners like Gudong Intelligent are responsible for the manufacturing of optical waveguides and complete machines, forming a supply chain collaboration.

The company's traditional business is centered around ALPD laser display, divided into four major segments: core components, cinema projection, professional display (engineering/commercial education), and home projection, which form a synergy with AR glasses optical engines. ① Technical synergy: ALPD laser light source, polarization control, and optical engine miniaturization technology are directly reused in AR LCoS optical engines and optical waveguide solutions. ② Customer synergy: Cinema/automotive/B-end customers (China Film, Huawei) provide channels and trust endorsements for AR solutions, with a procurement order for 10,000 AR optical engines already in place.

## Conclusion

The potential market size for AI glasses is large. Firstly, consumers have a demand for products with AI capabilities, with mature consumer markets pursuing "emotional value" and developing markets demanding "productivity and toolization," while AI+AR glasses are the perfect carrier for AI, capable of all-weather perception based on sound and vision. Currently, technological breakthroughs are driving the rapid growth of AI glasses. First, the popularization of small models on the edge adapts to low computing power and high privacy scenarios. Second, the computing power of wearable device chips is improving, enabling natural interaction with vertical small models. Globally, the annual sales of traditional glasses are about 2.3 billion pairs, excluding 850 million pairs of sunglasses, leaving 1.45 billion pairs of other glasses. If the penetration rate of AI glasses reaches 10% of the 1.45 billion pairs of glasses, global shipments are expected to reach 145 million pairs, with a market size exceeding 100 billion RMB.

AI glasses products are still rapidly iterating, with the value of the industrial chain concentrated in optics, chips, and OS systems. With the improvement of software and hardware technologies and the richness of content, AI glasses will see greater enhancements in content and interaction experience. Currently, the functions of AI glasses are evolving in four directions: hardware miniaturization and performance enhancement, AI-driven interaction upgrades, ecosystem integration, and metaverse and social functions. In the future, holographic AR or higher-level AI glasses product forms may emerge. In terms of cost breakdown for display-type AI glasses, the optical display module (such as optical waveguides) accounts for about 35%-45%, the main control AI chip accounts for 20%-30%, and sensors and batteries together account for about 15%, with the remainder being structural components and software. Additionally, giants with OS ecosystems will capture the system value of AI glasses. Taking smartphones as an example, Apple has built a closed-loop ecosystem of "hardware + software + services" through iOS, not only mastering the distribution rights and revenue-sharing rules of the App Store but also relying on the system to connect multiple terminals such as smartphones, tablets, and smartwatches, capturing most of the profits in the smartphone industry Google quickly occupied the mid-to-low-end market through the open-source strategy of Android, achieving commercial monetization through advertising, application services, and other means.

Home appliance companies are leveraging their advantages to enter the AI glasses market. ① On the brand side, TCL Electronics invested in Thunderbird Innovation, which independently developed a core optical module with a light engine + waveguide, relying on TCL Huaxing's semiconductor-level photolithography/etching equipment and processes to directly support the high-precision processing of Thunderbird's single-layer grating. Combining TCL Huaxing's MicroLED micro-screen technology with Thunderbird's independently developed single-layer waveguide architecture, they created a binocular full-color MicroLED waveguide solution. Hisense V.T. launched its own brand AI glasses Vidda G11 smart glasses and MR V3 Pro, integrating deeply with XREAL's technology and product development, with Hisense providing display technology and AI large model capabilities, while XREAL supplies the optical engine and spatial computing technology. ② On the OEM side, Biyu Co., Ltd. strategically invested in Shanghai Lihui Optoelectronics, binding the core technology of geometric waveguides (molecular bonding, two-dimensional beam expansion) and attempting to transfer home appliance manufacturing capabilities to operate AR glasses assembly business, expanding OEM cooperation relying on Lihui's customer resources. ③ On the optical machine side, Appotronics' AI/AR glasses business focuses on upstream core optical components (LCoS optical machine + waveguide solution), reusing ALPD laser light sources, polarization control, and optical machine miniaturization technology from traditional business to AR LCoS optical machines and waveguide solutions, signing a procurement order for 10,000 units with Gudong Intelligent.

Risk Warning and Disclaimer

The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at one's own risk

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