AR Glasses: Core Advantages, Mass Production Challenges and Future Prospects

Previously, we discussed what smart glasses are, their functions, and the challenges hindering their development. In this article, we will focus on AR glasses with display capabilities, exploring their increased potential, production bottlenecks within the industry, and anticipated future growth.

1. Why Are AR Glasses More Promising?

The crucial distinction between AR glasses and AI glasses without display capabilities lies in the immersive user experience offered by AR glasses with display capabilities. By seamlessly integrating virtual information with the physical world, AR glasses precisely overlay virtual content, such as images, videos, and text, onto our perceived reality, creating a compelling mixed-reality visual experience. For instance, while visiting a museum, putting on AR glasses can bring artifacts to life, providing detailed historical introductions alongside 3D animated recreations of their production and use, allowing the wearer to have an experience as if traveling through time and space. AR glasses revolutionize the traditional way of obtaining information, making users feel as if they are in a brand-new world.

Furthermore, AR glasses offer the advantage of ubiquitous information accessibility. The inherent portability of AR glasses allows users to access needed information anytime and anywhere. When traveling, users can check real-time road conditions and navigation information through AR glasses. When shopping, users can view product details and compare prices via AR glasses. This ability to access information anytime and anywhere will greatly change people's lifestyles and work practices.

From the perspective of user experience, the absence of a display function represents a significant limitation for AI glasses. In many application scenarios, including map navigation, watching videos, and browsing documents, a display function is essential. However, AI glasses can only convey information through voice prompts, which are often not intuitive or efficient enough in some complex scenarios. For instance, during navigation, auditory instructions are obviously not as clear as directly displaying the navigation route in front of the user's eyes. 

Rokid Glasses are currently the most talked-about AR glasses product, officially priced at RMB ￥3299 yuan, with the first batch of pre-orders shipping from September 15th. According to Rokid's official account, Rokid Glasses achieved sales of 40,000 units across all channels within 5 days, fully utilizing its production capacity for September. Data indicates that sales volume of waveguide-based AR smart glasses in the Chinese market were approximately 20,000 units in the first half of the year 2025, a relatively small figure. With 5-day sales reaching double the total AR glasses sales in the Chinese market for the first half of the year, Rokid Glasses have become the best-selling AR glasses so far.

However, Rokid Glasses went through a relatively long cycle from its release in November 2024, to the first batch of shipments in July, and then to its official launch in September. This reflects that in the early stage of the industry, the mass production of AR smart glasses still faces many challenges.

2. Where Are the Bottlenecks in Industry Production Capacity?

The complexity of manufacturing optical waveguide lenses and MicroLEDs, coupled with their low yields, represents a significant impediment to the widespread adoption of AR smart glasses with display functions.

In terms of optical solutions, optical waveguides primarily rely on total internal reflection to confine and transmit light within the waveguide structure, enabling image projection and display. Key optical waveguide technologies currently available include array waveguides, diffractive waveguides, and volume holographic waveguides. Currently, waveguide technology still faces many challenges in practical applications: the manufacturing process is complex, requiring high-precision photolithography, etching, and other advanced techniques, which consequently drives up production costs. However, optical waveguides still fall short of fully satisfying user requirements regarding field of view, brightness uniformity, and contrast. Consequently, the inherent complexity and stringent requirements of optical waveguide technology limit the number of companies capable of achieving large-scale mass production, thereby making optical waveguides a major bottleneck in scaling up AR glasses production.

Regarding display technology, MicroLED offers superior brightness, contrast, refresh rates, and reduced power consumption, enabling clearer and more realistic visuals compared to traditional LCD and OLED technologies. However, the fabrication of MicroLED chips is intricate, necessitating the miniaturization of individual LED chips to micron-scale dimensions, followed by their arrangement into dense arrays. This process demands high-precision manufacturing technologies and equipment, which contributes to elevated production costs. Furthermore, MicroLED chip transfer and bonding technologies are not yet sufficiently mature. Issues such as chip damage and position deviation during manufacturing can negatively impact mass production efficiency and yields. This makes MicroLED technology another critical bottleneck in improving the production capacity of AR glasses.

3. What Can Be Expected for Future Development?

A) Breakthroughs in Core Technologies

In terms of technological research and development, numerous companies and research institutions have increased their investment in optical waveguide and MicroLED technologies, aiming to improve technical performance and reduce production costs. Furthermore, cooperation between upstream and downstream enterprises in the supply chain is continuously strengthening. Optical waveguide manufacturers collaborate closely with display chip manufacturers and AR glasses OEMs to jointly promote technological development and product optimization. Collaborative innovation across the value chain facilitates more effective solutions to technical challenges and enhances production capacity.

B) Expansion of Application Scenarios

AR glasses are expected to play an increasingly significant role in education, healthcare, and industry. In education, AR glasses can offer students more vivid and intuitive learning experiences, thereby improving learning efficiency. In healthcare, AR glasses can assist physicians with surgical procedures and diagnoses, leading to advancements in medical care. In industrial settings, AR glasses can aid workers in equipment maintenance and operational guidance, resulting in heightened production efficiency.

C) Entry of Major Manufacturers

On September 17, 2025, Meta released its first consumer-grade monocular full-color AR glasses, Meta Celeste, priced at approximately $800. Meta Celeste will employ an LCoS + array optical waveguide solution. Overseas analysts predict that Meta Celeste will reach mass production in Q3 2025, with a product lifecycle of two years and estimated shipments of 150,000-200,000 units over that period. The future entry of companies such as Apple, Huawei, and Xiaomi is worth looking forward to.

Conclusion

Despite current challenges, AR glasses, fueled by technological breakthroughs, expanding application scenarios, and promotion by major manufacturers, have the potential to become the "iPhone" of the AI era, leading a new round of transformation in the technology industry. Let us maintain our curiosity and anticipation for technology and follow the development trends of AR glasses.