EssilorLuxottica Bets on AI-Powered Smart Glasses Amid Privacy and Competition Challenges
EssilorLuxottica is making a bold push into the smart eyewear market, banking on artificial intelligence to reshape how consumers interact with technology. Its Ray-Ban Meta glasses—developed in partnership with Meta Platforms—have begun generating meaningful revenue, but analysts warn that privacy issues and rising competition could hinder long-term growth.
A Fusion of Tech and Fashion
Launched in 2021, the Ray-Ban Meta frames allow wearers to capture photos and videos through built-in cameras, livestream to Meta’s social platforms, and converse with an AI assistant. Designed to blend style with functionality, the glasses mark Meta’s latest attempt to create a device that could eventually rival smartphones in everyday use.
However, the same features that make the product innovative have triggered privacy concerns. “AI smart glasses raise significant privacy concerns,” said Kleanthi Sardeli, a lawyer at European digital rights group NOYB. “The main issues are linked to personal data used to train AI models and transparency for bystanders.”
Meta, which earns most of its revenue from advertising, has faced long-standing scrutiny over its handling of user data. Its collaboration with EssilorLuxottica places the French-Italian eyewear giant at the centre of the debate over balancing innovation with data protection.
Tightened Oversight in Europe
European regulators have monitored the partnership closely since 2021. Authorities in Italy and Ireland asked Meta to explain how its devices comply with privacy laws. Ireland’s Data Protection Commission even challenged whether a small LED light on the glasses was sufficient to warn people they were being recorded, prompting Meta and EssilorLuxottica to enlarge the indicator and introduce a blinking pattern.
Under the EU’s Artificial Intelligence Act and the General Data Protection Regulation (GDPR), any public recording must be legally justified and clearly disclosed. Yet enforcing those rules remains difficult when device ownership cannot be easily identified.
A Monash University survey conducted in 2024 found that while owners view smart glasses as enhancing social status and connectivity, non-users associate them with privacy risks and social tension. EssilorLuxottica responded that it works “with competent authorities to drive innovation, safeguard privacy and set new industry standards.”
Competition Intensifies in the Smart Eyewear Market
EssilorLuxottica currently holds around 60% of the global smart glasses market, according to Barclays. Analysts credit its success to Meta’s decision to pair cutting-edge technology with a fashionable brand. “Instead of trying to make something cool, Meta partnered with people who know what’s cool,” said Ross Gerber, CEO of Gerber Kawasaki.
Still, Bernstein analyst Luca Solca cautioned that EssilorLuxottica’s early lead may narrow as competitors enter the field. New models from Apple, Google, Alibaba, Xiaomi and Amazon could crowd the market by 2027. Apple’s first smart glasses are expected next year, while Google has partnered with Warby Parker and luxury group Kering for a 2026 launch.
EssilorLuxottica also faces the risk of cannibalising its traditional eyewear lines, which account for roughly a quarter of its revenue.
Expanding a Global Brand Network
Despite rising competition, EssilorLuxottica can leverage its vast distribution network of 18,000 stores and a portfolio that includes Prada, Armani, Chanel and Oakley. “Their strength lies not just in manufacturing but in distribution and brand leverage,” said Bassel Choughari, portfolio manager at Comgest.
Under CEO Francesco Milleri, who took the helm in 2020, the company is steering towards medical and wearable technology. Smart glasses contributed over four percentage points to nine-month sales growth this year, helping to lift its market value by 14% to around €140 billion.
The company is now expanding into sports and luxury segments, having held exploratory talks with Prada’s Lorenzo Bertelli. In September, it unveiled a model with an in-lens display controlled through a bracelet that converts hand gestures into commands.
“Competition is welcome,” EssilorLuxottica said. “A vibrant ecosystem will help us drive market growth, fuel innovation and expand consumer choice.”
with inputs from Reuters