Smart Glasses Poised for Massive Growth with Meta, Apple, and More Joining the Market

Smart glasses are gaining popularity with Meta's Wayfarer AI glasses selling nearly 2.6 million units since 2023. Tech companies see smart glasses as a way to spur AI adoption and bridge to future augmented-reality glasses. Apple plans to launch smart glasses by late 2026, while Meta has invested $3.5 billion in eyeglass maker EssilorLuxottica. Expect more models and styles in the next couple of years, but adding more tech may make the glasses too bulky.

The convergence of artificial intelligence (AI) and wearable technology is poised to redefine consumer tech, with an unlikely alliance at the forefront: Meta Platforms Inc. and EssilorLuxottica. This partnership, rooted in strategic synergy between Meta's AI infrastructure and EssilorLuxottica's wearable tech production, represents a bold bet on smart glasses as the next major growth frontier.

Meta's 3% stake in EssilorLuxottica, valued at approximately €3 billion, marks a pivotal shift in its hardware strategy. The collaboration, which began in 2019, has already produced two generations of Ray-Ban Meta smart glasses, blending Meta's AI-driven voice assistant with EssilorLuxottica's expertise in optical design and global distribution. The second-generation glasses, launched in 2023, now boast features like real-time landmark identification, voice-controlled messaging, and recipe recognition via smartphone tether [1].

The partnership's true power lies in its complementary strengths: Meta's AI prowess and EssilorLuxottica's unparalleled access to 150+ eyewear brands, including Oakley, Prada, and Chanel. This synergy enables the duo to tackle two critical barriers to wearable tech adoption—usability and desirability—while leveraging EssilorLuxottica's 8,000+ retail locations worldwide [1].

The global smart eyewear market is projected to grow from its current $3.1 billion to over $8.26 billion by 2030, driven by rising demand for AI-integrated devices. Meta and EssilorLuxottica are already capturing early momentum: over 2 million units of the second-gen Ray-Ban Meta glasses were sold by late 2023, generating $600 million in revenue [1].

Recent product launches underscore their ambition. The 2024 Oakley Meta Performance AI glasses, featuring 3K video capture and real-time performance metrics for athletes, expand their addressable market beyond fashion into sports and enterprise. Meanwhile, plans to launch AI-powered glasses under luxury brands like Prada signal a play for premium pricing power [1].

To meet this demand, EssilorLuxottica is aggressively scaling production. A new 220,000 sqm manufacturing campus in Rayong, Thailand—complete with solar energy systems and water recycling—has consolidated lens and frame production under one roof. In Mexico, two facilities now handle 10 million lenses and 25 million frames annually, while a French Excellence Laboratory centralizes quality control for AI-enhanced lenses [1].

The goal is clear: 10 million annual smart glasses by 2026, up from 2 million in 2023. This expansion is underpinned by ISO 13485-certified labs ensuring precision in lenses like the AI-powered Varilux XR series. Automation and proprietary software further streamline production, reducing costs while maintaining luxury standards [1].

Meta's reported intention to raise its stake to 5% by 2025 is no mere financial move. It reflects a deepening partnership at a critical juncture: as competitors like Apple and Google enter the space, Meta needs to solidify its lead. The 5% stake would provide Meta with board-level influence, accelerating decision-making on product roadmaps and data integration [1].

For EssilorLuxottica, the stake expansion secures access to Meta's AI capabilities and global tech infrastructure. This symbiosis positions both companies to dominate not just glasses, but the broader augmented reality (AR) ecosystem [1].

Catalysts for value appreciation include upcoming product launches, production efficiency, AI integration, and regulatory tailwinds. Investors should consider both EssilorLuxottica and Meta as long-term bets on AI-driven wearables, a sector primed for exponential growth [1].

References:
[1] https://www.ainvest.com/news/glasses-future-meta-essilorluxottica-shaping-ai-driven-wearables-revolution-2507/