EssilorLuxottica, the French-Italian eyewear giant, is doubling down on smart eyewear with its AI-powered Ray-Ban Meta glasses—a bold move that is starting to pay off financially, but also attracting scrutiny. Launched in 2021 in partnership with Meta, the glasses allow wearers to capture photos and videos through tiny lenses, stream content to Meta apps, and interact with an AI assistant.
The futuristic design positions the glasses as a potential disruptor in the post-smartphone era, but experts warn that privacy issues and an influx of competitors could limit growth.
Privacy Concerns Loom Large
The same features that make Ray-Ban Meta glasses appealing are also sparking concerns. By-standers have limited control over being recorded or how their data is used, raising red flags with privacy advocates.
“AI smart glasses raise significant privacy concerns,” said Kleanthi Sardeli, a lawyer at European digital rights group NOYB. “The main issues are linked to the use of people's personal data to train AI models and transparency for bystanders.”
Regulators in Europe have been particularly cautious. Since 2021, Italy and Ireland have sought clarification from Meta on how the devices comply with local privacy laws. Ireland’s Data Protection Commission even questioned whether the tiny LED indicator was sufficient to alert people that they were being filmed, prompting modifications to the light’s size and blinking pattern.
Under the EU’s AI Act and GDPR, recordings of individuals must have a legal basis, unless they are for purely personal or household purposes. NOYB notes enforcement is tricky when the device owner is unknown.
Early Market Success
Despite these concerns, the glasses are driving tangible results. EssilorLuxottica reported that smart glasses contributed more than four percentage points to its nine-month sales growth, helping fuel a 14% market rally for the 140 billion euro company. Shares have gained 28% this year, rebounding from tariff shocks and reflecting investor enthusiasm for the Ray-Ban Meta line.
A 2024 Monash University survey of over 1,000 Australians showed a stark contrast between users and non-users: owners perceive smart glasses as enhancing self-image and social ties, while non-users fear privacy breaches and social disruption.
EssilorLuxottica insists it is working closely with regulators to balance innovation with privacy safeguards.
Competition Intensifies
Ray-Ban Meta glasses currently dominate the AI eyewear market, with EssilorLuxottica estimated to hold a 60% market share, according to Barclays. Analysts credit the success to the company’s ability to combine tech and fashion—an approach that failed for Google Glass a decade ago.
But first-mover advantage may erode quickly as rivals enter the space. Alibaba has released its Quark AI glasses in China, while Apple is expected to unveil its model next year with a release in 2027. Google is collaborating with Warby Parker and Kering on its own product, set for 2026, and Amazon and Xiaomi are also exploring the market.
Bernstein analyst Luca Solca cautions that smart glasses could cannibalize EssilorLuxottica’s traditional eyewear business, which still accounts for roughly a quarter of company revenue.
Leveraging Brands and Distribution
EssilorLuxottica’s strength lies not just in manufacturing, but in distribution and brand portfolio. With 18,000 stores worldwide and luxury labels such as Prada, Armani, Chanel, and Oakley, the company can bring smart glasses to a broad audience.
“Ability to produce is one thing, but their ability to distribute and leverage multiple brands shouldn’t be underestimated,” said Bassel Choughari, a Paris-based portfolio manager at Comgest.
CEO Francesco Milleri, at the helm since 2020, is steering the company toward medical technology and high-tech eyewear, seeing smart glasses as a key pillar. Recent innovations include in-lens displays controlled via a bracelet translating hand gestures into commands.
Looking Ahead
EssilorLuxottica remains optimistic despite rising competition. “A vibrant ecosystem will help us drive market growth, fuel innovation and expand consumer choice,” the company said.
While Ray-Ban Meta glasses account for only about 2% of global sales, their influence on growth, branding, and investor sentiment is outsized. The coming years will test whether EssilorLuxottica can maintain its lead in a market where privacy, regulation, and innovation collide.