AI Glasses War Heats Up in China as Big Tech Enters Market

Humanoid robots stole the spotlight at China's Spring Festival celebrations for the second consecutive year. Some models became so popular after performances that they sold out entirely. However, experts agree that high prices and technological limitations mean household adoption will take more time. The real contender for mass adoption is something else entirely: AI glasses. With more than 70 companies entering the market, industry observers are calling it the "War of 100 Glasses" (百鏡大戰). Big tech firms have been joining the fray since last year, leading analysts to predict 2025 will mark the first year of mass AI glasses adoption.

New Year Purchases Surge 80%, Becoming Core of Spring Festival Consumption

AI glasses sales at Huaqiangbei, Shenzhen's largest electronics market, jumped 80% year-on-year over the past two months, according to Chinese tech media outlet Kechuangban Daily on February 20. This far exceeds the 30% growth rate for overall IT products during the same period. The outlet noted that "AI glasses have emerged as a core product in the Spring Festival consumer market."

Government subsidies are driving the surge in demand. A policy offering 15% discounts on smart device purchases (up to 6,000 yuan) has directly stimulated consumer interest. Major tech companies including Baidu, Xiaomi, and Alibaba have also released new products since last year, further stoking purchasing desire. During Singles' Day shopping festival in November, smart glasses sales surged 346%.

Big Tech Mobilizes as 'War of 100 Glasses' Intensifies

Analysts point to the wave of new product launches in late 2024 as the decisive factor behind rising demand. INMO kicked things off in October, followed by Baidu, Rokid (partnering with eyewear brand Bolon), and Alibaba in November. Automaker Li Auto joined in December. Alibaba's Quark AI glasses series attracted enthusiasts by offering features like foreign language translation and mobile payments at 70% of Meta's Ray-Ban glasses price. ByteDance plans to enter the market this year.

Nearly 70 companies are now competing in China's smart glasses market. New products launch almost daily, prompting the industry to call this the "War of 100 Glasses." Hardware-focused companies like Huawei and Xiaomi initially entered to expand their ecosystems. Since last year, internet giants Alibaba, Baidu, and ByteDance have joined in earnest. They need hardware platforms to deploy their large language models in real-world environments while collecting first-person perspective and spatial behavior data. Startups targeting outdoor sports and travel are also emerging, expanding the market.

A robust supply chain is another key factor drawing companies to the sector. About 80% of the smart glasses supply chain—optical components, structural parts, surface processing, and final assembly—is located in China. Meta and Google rely heavily on Chinese suppliers for key components and assembly. Analysts suggest China could replicate its success in humanoid robots, where supply chain advantages enabled mass production ahead of the United States.

China Controls 80% of Supply Chain—Will It Dominate AI Glasses Too?

Meta still dominates the global market with approximately 75.7% share. However, industry experts agree that China's supply chain dominance will prove decisive as the market enters mass production. According to McKinsey & Company, smart glasses manufacturing requires 60-80% more supplier coordination points than traditional wearables. Even trailing 5-10 years behind in computing power, algorithms, and operating systems, China's overwhelming manufacturing competitiveness cannot be ignored.

Government and capital market backing remains strong. Chinese authorities included AI glasses in subsidies for replacing old consumer goods, covering 15% of purchase prices. Thunderbird (Rayneo), a TCL spinoff specializing in AI glasses, recently completed funding exceeding 1 billion yuan. Sharge, known for portable chargers, raised 100 million yuan after entering the market. Net capital inflows to 17 AI glasses companies exceeded 200 million yuan in Q4 2024.

According to U.S. market research firm IDC, China's smart glasses shipments are projected to grow from approximately 2.9 million units last year to 4.91 million units this year. Global shipments are expected to exceed 40 million units by 2029. China is forecast to rank first worldwide with a compound annual growth rate of 55.6%. IDC predicted that "China's smart glasses market will enter a full-scale growth phase this year."