The Great Smart Glasses Scramble: A Delicate Balancing Act

Strategic Insights -

As tech giants gear up for the potential launch of the first artificial intelligence consumer gadget, smart glasses, the market is witnessing a scramble to establish leadership. Despite the hype, the future of smart glasses remains uncertain, with many questioning whether these devices will truly go mainstream. According to an S&P Global survey, roughly half of respondents (48.2%) in eight countries, including the US, China, and India, expressed interest in purchasing smart glasses within the next year.

Key Takeaways:

  • Meta Platforms Inc holds a commanding 73% of the global smart-glasses market, according to Counterpoint Research, but its lead may face challenges with the entry of Chinese brands like Huawei Technologies Co, Xiaomi Corp, and RayNeo.
  • Chinese brands have made headlines with new product announcements, but few have entered mass production, with many announcements appearing more speculative than a long-term commitment to product development.
  • Apple Inc's potential foray into the market could unseat Meta and Chinese rivals, leveraging its ecosystem of products and potentially unlocking useful AI features.
  • Smart glasses have not been a sure-fire bet with consumers, with the "glasshole" stigma still prevalent, and concerns over privacy, surveillance, and detoxing.
  • Companies like Meta and OpenAI are seeking more control over hardware, while tech giants try to convince consumers that a screen glued to their eyes is liberation, not intrusion.

Statistics:

  • Roughly half of respondents (48.2%) in an S&P Global survey across eight countries are interested in purchasing smart glasses within the next year.
  • Meta Platforms Inc holds a 73% market share in the global smart-glasses market, according to Counterpoint Research.
  • China accounts for around one out of eight pairs of smart glasses sold globally, with a relatively small market size due to cultural and behavioral differences in sunglass usage compared to the West.
  • The smart watches industry has grown to over $10 billion (Counterpoint Research).

Sources:

  • S&P Global survey
  • Counterpoint Research
  • Bloomberg Opinion columnist Catherine Thorbecke