EssilorLuxottica Bets Big on Smart Glasses to Reshape Our Digital Future

EssilorLuxottica SA, the global leader in eyewear and owner of iconic brands like Ray-Ban, Oakley, and Persol, is strategically positioning itself at the forefront of the burgeoning smart-glasses category. The company envisions smart glasses evolving from mere fashion accessories or prosthetics into a ubiquitous device that could one day become as common and central to daily life as the smartphone, a notion articulated by Chairman and CEO Francesco Milleri.

Central to this vision is a significant partnership with Meta Platforms Inc. to manufacture and sell AI-equipped eyewear, including the popular Ray-Ban Meta line. This collaboration aligns with the broader push by Silicon Valley giants to establish wearable technology as the next major breakthrough in consumer electronics. Milleri foresees a future where "hundreds of millions of smart glasses interconnected with each other, and with the people who wear them creating huge communities," fundamentally altering how individuals interact with technology and each other.

To meet anticipated demand, EssilorLuxottica is aggressively expanding its production capacity for Ray-Ban Meta glasses, aiming to reach an annual output of 10 million units by the end of next year. This enhanced capacity is versatile and can also accommodate the production of other smart glasses models, as well as the company’s innovative Nuance Audio line, which integrates advanced hearing assistance capabilities into stylish eyewear. This strategic expansion underscores a long-term commitment to diversifying into wearables and medical technology, all while maintaining its dominant position in the traditional eyewear market.

Under Milleri’s leadership since taking over as chairman in 2022 following the passing of Luxottica founder Leonardo Del Vecchio, the company's market value has more than doubled to over €125 billion. Milleri, a close confidant of Del Vecchio, has successfully built upon the founder’s vertically integrated business model. This involved expanding Italy’s Luxottica through strategic acquisitions, notably merging with French lens maker Essilor in 2018. The company's vast network of retail outlets, such as Sunglass Hut, provides unparalleled distribution power and direct access to consumers, complemented by lucrative licensing deals with luxury brands like Prada and Armani.

The next phase of Milleri's ambitious plan involves leveraging EssilorLuxottica’s extensive global network of laboratories, factories, and retail stores to develop and market innovative, higher-value products. These initiatives span diverse areas, including advanced myopia-correcting lenses, specialized medical technology for clinical settings, and cutting-edge wearable devices like those developed in partnership with Meta.

The financial implications of the Meta partnership are substantial. Barclays’ most optimistic forecasts estimate EssilorLuxottica’s revenue from this collaboration at €365 million in 2024, potentially growing to €800 million in 2025, and surging past €6 billion by 2030. Analysts project a significant expansion in the global smart-glasses market, with annual sales expected to climb from approximately 3 million units currently to 60 million by 2035, indicating a massive growth trajectory.

Smart glasses offer users a range of augmented reality features, such as messages or turn-by-turn directions projected onto the lens, along with voice-activated AI assistance. Meta is heavily investing in making smart glasses the primary interface for its AI services, reportedly acquiring a 3% equity stake in EssilorLuxottica through a $3.5 billion investment. Mark Zuckerberg, Meta’s CEO, recently unveiled the $799 Meta Ray-Ban Display, which integrates a screen in the right lens capable of showing text messages, video calls, navigation, and visual AI results. It can also function as a phone camera viewfinder and music controller, aligning with Zuckerberg's vision that by the 2030s, smartphones will largely remain in pockets, supplanted by smart glasses for everyday interactions.

Despite the optimistic outlook, both EssilorLuxottica and Meta face increasing competition from rivals in China and the U.S. Success is not guaranteed, as evidenced by Meta's ongoing development with virtual reality headsets. Apple Inc., for instance, recently reallocated resources from its Vision Pro headset to focus on developing its own smart glasses. However, Milleri, who works directly with Zuckerberg on the smart-glasses project, emphasizes that collaboration is paramount for innovation, asserting that "only a collaborative model — a networked company — can maintain leadership in innovation and technology."

Beyond smart glasses, EssilorLuxottica is making strategic investments in medical technology, including AI applications in healthcare that extend beyond ophthalmology. The company also recently acquired streetwear brand Supreme in 2024, aiming to strengthen its connection with younger consumers. Furthermore, EssilorLuxottica has been mentioned as a potential investor in Giorgio Armani SpA, described by Milleri as an "evolutionary prospect," following references in the late designer's will.

Francesco Milleri's influence extends beyond the eyewear industry; as head of Delfin Sarl, the Del Vecchio family's holding company, he has played a significant role in Italy’s recent banking consolidation. Delfin has supported Banca Monte dei Paschi di Siena SpA’s acquisition of Mediobanca, becoming the latter's largest investor with a 17.5% stake.

Nevertheless, eyewear remains at the core of EssilorLuxottica’s identity and future. Milleri envisions a future where "technology, digital, and superintelligence will open up interactions with worlds that are now completely remote." He anticipates wearable computing being applied not just in social and medical contexts, but also in home automation, entertainment, autonomous driving, and even air, light, and sound quality control, illustrating a broad and transformative vision for the company's innovations.