Imagine it’s 2030. You’re driving around and spot a house for sale. With a single glance, you instantly know its listing price, property taxes, and can even see a virtual tour of the interior—without reaching for your phone or asking a single question. What makes this possible? The answer lies in the power of smart glasses, seamlessly unlocking information at the blink of an eye.
More recently, with the launch of Meta’s Orion and Snapchat Spectacles, smart glasses have moved closer to this futuristic vision. The integration of AI has elevated the user experience, allowing these devices to understand preferences, adjust settings in real time, integrate voice commands, and function as personal assistants. AI also enables smart glasses to provide real-time information about objects in the user’s environment.
Innovation has focused on improving performance, extending battery life, and making smart glasses more scalable and cost-effective. These advancements are crucial steps toward making smart glasses a ubiquitous device in everyday life.
Technology behind smart glasses:
But how exactly do smart glasses achieve this seamless integration of the physical and virtual worlds? At their core, smart glasses function as miniature computers embedded into a pair of eyeglasses. These devices overlay digital information—such as text, images, videos, or 3D objects—directly onto the lenses, perfectly aligned with the user’s field of vision. This hands-free experience enables users to interact with digital content in real-time as it merges with their surroundings, creating an immersive blend of the real and virtual.
History of smart glasses:
The concept of smart glasses dates back to 1862, with John Pepper’s “Pepper’s Ghost” illusion, which used angled glass to project ghost-like images on stage. This early innovation laid the groundwork for blending real and virtual worlds. In the 1960s, Morton Heilig patented a head-mounted display (HMD), inspiring future smart glasses. By the 1970s, AR was in use by the U.S. Air Force’s Head-Up Displays (HUDs), but it wasn’t until the 1980s that AR gained mainstream attention through Hollywood films like The Terminator and Robocop.
AR took a major step forward in 2001 with the first AR browser, Real World Wide Web, and by the 2000s, mobile AR allowed for location-based experiences and digital overlays on print media. In 2011, Google introduced the first AR smart glasses with Blippar, followed by Meta One in 2014 and launches from companies like Vuzix, Epson, and Microsoft. In 2021, Ray-Ban Stories made AR smart glasses more accessible to the public with features like video recording, priced at $320. Meta has since shipped over 700,000 pairs.
Players shaping the market today and where young companies are innovating:
Meta’s Orion, while currently available only to select developers, offers a compelling glimpse into the future of smart glasses. Though it may take years to launch, with production costs expected to exceed $10K, the technology showcases what’s possible as smart glasses evolve. Key differentiating features include:
- Wider field of view (~70 degrees)
- Support for multitasking and life-sized holograms of people
- Integration of AI for enhanced functionality
- Advanced EMH (Electro-Magnetic Hand) technology for hand, eye, and voice tracking
- Pocket-sized charger and processor for increased battery life and computing power
The Snapchat Spectacle, launched earlier this year, offers similar features but has only achieved a 23-degree field of view and 30 minutes of battery life. On the other hand, Chinese AR player XReal has positioned itself as a dominant force in the market, holding 52% of the AR/VR headset market share. Their latest glasses offer longer battery life, are lightweight, and are more affordable at $699. Meanwhile, players like Oppo and Xiaomi have announced their own smart glasses, expected to launch in the coming years, further expanding the market and likely coming with affordable variants – thus driving down the cost of the technology.
The hardware space has also become a point of interest for emerging companies. Singapore-based Brilliant Labs, having raised over $6M in funding, launched their AI-powered smart glasses at $349, leveraging OpenAI’s capabilities to provide real-time assistant-like features. Israel-based Sightful has taken a unique approach by creating a “laptop with no screen,” using AR glasses to offer spatial computing capabilities.
While the role of smart glasses OEMs, catering directly to consumers, is largely dominated by a few big tech players, young startups are driving innovation in hardware—particularly in lenses and optical solutions. Finland-based Dispelix, which recently raised a Series B, has developed advanced display technology for smart glass manufacturers. Similarly, Germany-based Oqmented offers compact light engines that improve the display capabilities of smart glasses.
Leveraging B2B use cases with smart glasses remains an attractive field for exploration. Some key applications include:
- Providing visual cues to perform tasks like maintenance, navigation, repair, and assembly. This streamlines processes and has strong use cases in defense, construction, automotive, and healthcare industries.
- Immersing users in realistic training environments that are typically high-cost, high-risk, or hard to replicate. This is particularly useful in fields like space exploration, healthcare, automotive, and industrial products.
- Enhancing marketing and consumer experiences through interactive, location-based, or web-based AR features. A prime example is Sephora’s recent launch of an AR tool on their website, allowing users to try a virtual makeover by uploading a selfie.
Where India is building:
Enterprise and B2B focused use cases have garnered the attention of Indian startups. Companies like Ajnalens are building strong defense solutions, while Avatar and Scapic (now acquired by Flipkart) have focused on creating 3D models of products to enhance sales and marketing. Trezi, in addition to launching their VR device, also offers AR-based experiences for interior design and architectural applications. Orbo, launched in 2019, focuses on developing AR tools for beauty brands to enable virtual try-ons and effectively increase conversions. With AR advertising in India reaching Flam, another Indian startup has seen global success in mixed reality focused advertising.
Looking forward:
With the rise of smart glasses and rapid technological advancements, we are transitioning from interacting with devices through physical touch or voice commands to more intuitive methods like hand and eye movements. This evolution is paving the way for a more seamless integration of digital and real-world experiences, bringing us closer to a future where smart glasses become an essential, everyday tool.
The AR/VR market is expected to grow from $40.4B in 2024 to $62B by 2025, with users projected to reach 3,728M and the number of AR and VR headsets reaching 90M by 2025. In India, the market is also set to expand from $780M in 2024 to $1,256M by 2029.
This market expansion is expected to be driven by the following innovations in smart glasses:
- Decrease in battery size while increasing overall battery life and improving heat management
- Reducing headset weight and moving to more comfortable form factors
- Expanding optical field of view (>90 degrees) to enhance immersive experiences
- Increased computing power to enable seamless rendering
- Expansion of use cases with developments in Gen AI, especially in voice recognition and personalization
- Increased display brightness (>3000 nits) for a seamless outdoor experience
Kalaari’s outlook:
As AR glasses transition from niche technology to mainstream adoption, the immediate impact is being felt in B2B and enterprise applications, with immense potential across several key sectors.
- Education:
Technology is transforming education by making learning more interactive. AR allows students to grasp concepts better through immersive visual presentations. - Retail:
AR/VR is set to redefine retail by enhancing customer experiences. For instance, customers can now virtually try products before purchasing, as seen with brands like Lenskart and IKEA. - Healthcare:
In healthcare, AR/VR is revolutionizing medical education, diagnostics, surgery, and fitness. AR-powered diagnostics played a crucial role in containing the spread of COVID-19 and continue to support complex surgical procedures, showcasing the value of adopting these technologies. - Gaming:
AR/VR has already transformed the global gaming industry, creating highly immersive experiences that blur the line between reality and the virtual world.
As we move towards consumer-focused commercialization, the key to wider adoption will be reducing costs in both development and the supply chain.
Currently, smart glasses are affordable mainly for niche tech enthusiasts. To scale, entrepreneurs should focus on building applications that expand use cases as device adoption grows. Simultaneously, regulatory frameworks need to evolve to address privacy and security concerns, ensuring these devices are used ethically. Areas likely to see immediate growth and adoption include sectors like education, healthcare, and industrial training.
Until then, most of us will be sticking with our familiar screens and email inboxes—waiting for AR glasses to become an everyday tool.
