Core Viewpoint - The smart glasses industry is expected to enter a rapid growth phase, with related companies poised to benefit from an upward cycle in market conditions [2]. Group 1: Industry Trends - CES 2026 showcased a variety of new smart glasses from leading Chinese brands such as Thunderbird Innovation, XREAL, Rokid, and others, highlighting a clear industry trend [2]. - Key product highlights include differentiated designs for competitive advantage, innovative multi-core solutions for better performance and power balance, and a focus on niche markets to meet specific needs [2]. - The integration of AI technology is deepening, with products like Looki L1 claiming to automatically record life events and store data locally [2]. Group 2: Future Product Launches - Google plans to launch Project Aura in December 2025 in collaboration with Xreal and is reviving its independent AI glasses project, aiming for a 2026 release [3]. - Apple is concentrating resources on the development of Apple Glasses, expected to be announced at WWDC 2026, which will rely on the iPhone and focus on AI and audio [3]. - Meta is delaying the release of its mixed reality glasses, code-named "Phoenix," to optimize product experience after significant losses in its Reality Labs division [3]. - ByteDance is set to release its first AI glasses in Q1 2026 [3]. Group 3: Market Projections - Global smart glasses sales are projected to reach 1.52 million units in 2024, with a significant increase to 3.5 million units in 2025, representing a 230% year-on-year growth [4]. - The growth is primarily driven by the continued sales of RayBan Meta and the introduction of multiple new AI smart glasses from major manufacturers [4]. - By 2029, global sales are expected to reach 60 million units, with a CAGR of 109% from 2025 to 2029, indicating a substantial market share for China [4].

Core Viewpoint - The global AI eyewear market is expected to experience rapid growth driven by the launch of multiple new AI glasses, with Essilor Luxottica reporting significant sales increases in its smart eyewear segment, particularly with the Ray-Ban Meta collaboration with Meta [1][4]. Company Overview - Essilor Luxottica, formed from the merger of Italian eyewear giant Luxottica and French lens maker Essilor in 2018, holds a dominant position in the traditional eyewear market, managing the entire supply chain from design to distribution [4]. - The company operates over 18,000 retail stores in more than 150 countries and owns well-known brands such as Ray-Ban, Oakley, Vogue Eyewear, and Persol, as well as luxury eyewear lines for brands like Chanel, Prada, and Tiffany & Co. [4]. Financial Performance - In the first half of the year, Essilor Luxottica reported total sales of €14.02 billion (approximately $16.25 billion), reflecting a year-on-year growth of 7.3% [1]. Product Launches and Collaborations - The second-generation Ray-Ban Meta smart glasses are set to launch at the end of 2023, priced between $300 and $379, and are considered a flagship product in the AI eyewear category [5]. - After a five-year partnership, Meta has renewed its long-term collaboration with Essilor Luxottica to develop multiple generations of smart eyewear over the next decade [5]. - New Oakley Meta smart glasses were launched in collaboration with Meta's Facebook, with prices ranging from $399 to $499 for limited editions [5]. Market Trends and Future Outlook - The rise of AI technology is driving innovation in terminal devices, with AI glasses seen as one of the best hardware carriers for edge AI [6]. - Analysts predict a surge in new AI eyewear releases by 2025, as the market shifts from novelty to practicality, with features like translation, photography, and AI voice assistance becoming common in daily use [6]. - The upcoming releases of products like Oakley Meta HSTN and Xiaomi AI glasses are expected to significantly boost global AI eyewear shipments [6].

Investment Rating - The report maintains an "Outperform" rating for the electronic industry [1]. Core Insights - The rise of AI technology is driving innovation in terminal devices, with AI smart glasses emerging as a new carrier for AI applications. Compared to traditional XR devices, AI smart glasses integrate AI technology and focus on visual and auditory functions, making them lighter and more suitable for daily life scenarios. Users primarily utilize AI smart glasses for photography, live streaming, music, calls, and AI voice interaction [3][24]. - With an increasing number of entrants, 2025 is expected to see a surge in new AI smart glasses releases. The market is shifting from "showing off technology" to "practical use," with features like translation, photography, and AI voice assistants becoming common in daily scenarios, especially in sports, commuting, and translation contexts. Major smartphone manufacturers like Xiaomi and Samsung are anticipated to launch their first AI smart glasses in 2025 [3][18]. - The AI+AR future application potential is significant, with SoC and optical display being core value segments. The cost structure of AI smart glasses shows that the chip segment accounts for a substantial portion of the overall cost, with SoC being the primary cost driver [3][28]. Summary by Sections 1. New Products and Market Potential - AI smart glasses are expected to become a new carrier for AI applications, integrating essential sensory interaction methods [3][19]. - The market is entering a phase of dense new product releases, with a projected global shipment of 5.5 million units by 2025 and a CAGR of 144% from 2024 to 2027 [3][49]. 2. Core Components and Technology - SoC is identified as the core cost source for AI smart glasses, with a significant portion of the BOM cost attributed to chips [3][62]. - The report highlights the importance of Micro LED and optical display technologies in enhancing the application scenarios of AI+AR smart glasses [3][97]. 3. Market Trends and Competitive Landscape - AI smart glasses are transitioning from novelty to practicality, with features that enhance user experience in various scenarios [3][37]. - Collaboration between AI smart glasses brands and traditional eyewear brands is emerging as a significant trend, enhancing the distribution and service ecosystem [3][33].