Xreal Launches Global HQ in Shanghai for Chinese AR Glasses

On October 29, a prominent Chinese manufacturer of augmented reality glasses announced the opening of its international headquarters in Shanghai’s Pudong New Area. The new facility will focus on research and development, operations, and ecosystem collaboration, aiming to propel the industry into a transformative “iPhone moment.”

The company plans to position Pudong as its innovation hub, fostering the integrated advancement of artificial intelligence and AR technologies. It expressed its dedication to making AR glasses a next-generation smart device accessible to all.

Earlier this year, state-backed angel investor Pudong Venture Capital Group invested approximately CNY200 million (around USD28.2 million) into the company, prompting the decision to establish its global headquarters in the district.

The so-called “iPhone moment” for the AR glasses industry—signifying a major technological breakthrough—is expected around 2027 or 2028. During the headquarters opening, the company’s founder and CEO mentioned that smart glasses will soon be able to anticipate individual needs, marking a significant milestone.

Much of the progress in merging AI with AR, such as multimodal understanding, long-term memory functions, hardware developments, supply chain improvements, and ecosystem growth, is projected to mature over the next two to three years. This era will mark the beginning of a golden decade for smart terminal devices, the CEO noted.

This forecast aligns with Shanghai’s strategic plan for the intelligent terminal industry, which anticipates the sector surpassing CNY300 billion (about USD42.3 billion) by 2027. The plan emphasizes strong government support for the growth of smart glasses, including a range of AR, mixed reality, and virtual reality products, the development of globally influential consumer brands, and the cultivation of two leading companies to create a comprehensive product lineup for consumers, businesses, and professionals.

Since its founding in 2017, the company has maintained a leading position in the global consumer AR glasses market from 2022 through the previous year, according to data from a major market research firm. Its shipments increased by 114% in the second quarter compared to the previous year, capturing a 36% market share and solidifying its market dominance.