Tianfeng: AI sports glasses market may see development opportunities in the next 25 years. Recommend paying attention to Impulse(Qingdao) Health Tech (002899.SZ) and others.

Tianfeng Research Report: Domestic AI Sports Glasses Expected to Accelerate Popularization Tianfeng released a research report stating that since the launch of the domestic large model Deepseek-R1, the market feedback has been positive. The strong capabilities combined with low costs make domestic AI applications expected to accelerate popularization. AI glasses relying on their 1) voice and image interactive AI assistants, and 2) first-person photo functions, are expected to see a high increase in shipments in 2025. Positive outlook for the development of AI sports glasses in 2025, recommended focus on: Glasses brands: Xiaomi Group/Impulse(Qingdao)Health Tech Chips/Modules: Bestechnic (Shanghai) Co., Ltd./Shanghai Fortune Techgroup/Verisilicon Microelectronics (Shanghai) Co., Ltd./Shenzhen Bluetrum Technology/SigmaStar Technology Channels/Lenses: Doctorglasses Chain (covered by the light textile team)/CONANT OPTICAL/Mingyue Optical Lens (covered by the light textile team) Tianfeng's main points are as follows: Tianfeng believes that sports is one of the important application scenarios for AI glasses. Since the launch of the domestic large model Deepseek-R1, the market feedback has been positive. The strong capabilities combined with low costs make domestic AI applications expected to accelerate popularization. AI glasses relying on their 1) voice and image interactive AI assistants, and 2) first-person photo functions, are expected to see a high increase in shipments in 2025. Considering the characteristics of the sports market, such as 1) users wearing protective glasses for sports (windproof glasses for cycling/snow glasses/swimming glasses, etc.); 2) users finding it inconvenient to use their phones when their hands are occupied during fitness/cycling/skiing/swimming, etc.; 3) users having the need for sports tracking and using AI assistants, it is expected to be one of the important scenarios for the implementation of AI glasses. The launch of AI sports glasses may erode part of the sports watch/wristband market. Under optimistic assumptions, the potential market size may exceed one trillion. Currently available sports glasses on the market, such as Li Weike's Meta Lens S1 Pro professional sports version, have added heart rate and blood oxygen monitoring functions on the basis of having visual/auditory interactive AI assistants. This allows for sports tracking. It is expected that in the future, AI sports glasses will have more overlap in functionality with current sports watches/wristbands, potentially eroding part of the sports watch/wristband market. According to data from "I love Audio", the global shipment volume of smart wrist-worn devices reached 139 million in the first three quarters of 2024. Regarding prices, based on currently released AI glasses (with displays), it is estimated that the future price of AI sports glasses will be in the thousand yuan range. Under optimistic assumptions, the potential market size may exceed one trillion. Meta may launch AI sports glasses, and the entry of giants may accelerate industry development. According to Bloomberg, Meta plans to launch smart glasses under the Oakley brand in 2025 with and without displays, using the Oakley Sphaera as the basic model and project codenamed Supernova 2. The smart glasses under the Oakley brand will have the camera placed in the center of the frame rather than the corner, targeting cyclists and other sports enthusiasts. As a leading AI glasses company, Meta's new product release in the AI sports glasses market is expected to accelerate market education and boost product penetration rates.