According to CNBC, Citi analysts have reiterated a buy rating for EssilorLuxottica, the maker of Ray-Bans, saying AI glasses are “the next fast-growing edge device.” The company reported nearly 12% year-on-year growth in Q3, with over four percentage points directly tied to its wearables, including its Meta partnership. Citi expects the AI glasses market to grow over 100% annually until 2030, surpassing 110 million units and nearing $40 billion in retail revenue. The newest Meta Ray-Ban glasses cost $799 and feature a built-in display, using a neural wristband for gesture control. EssilorLuxottica’s stock is up 20% in 2025, outperforming the broader Stoxx 600 index. The company, which also oversees brands like Oakley and has deals with Prada and Chanel, is expected by Citi to hold about 30% market share by 2030.
The Race Is On
Here’s the thing: this isn’t just a niche gadget story anymore. When a legacy luxury eyewear giant starts crediting double-digit growth to tech wearables, you know a market inflection point is coming. And the competition is about to get fierce. Next year, we’re looking at launches from Google, Snap, Samsung, and, of course, the ever-looming specter of Apple. Basically, everyone wants a piece of your face.
But here’s where it gets interesting for EssilorLuxottica. UBS analysts suggest all this competition might actually help them. How? Because the biggest barrier right now is that most people have no idea what these glasses even do. More companies marketing the category raises all boats—or, in this case, all frames. And when consumers do decide to buy, survey data indicates they’ll gravitate toward a familiar, trusted brand like Ray-Ban or Oakley. That’s a huge moat. You might trust a tech company with your data, but do you trust them with your style? That’s a harder sell.
Beyond the Hype
So, is this all just analyst hype? The early financials suggest it’s not. Attributing a third of your quarterly growth to a new product line is a massive deal for a company of that size. It means the $799 price tag isn’t scaring off the “tech-savvy and richer” customer base they’re targeting. They’re buying these as a luxury tech accessory, not just a gadget.
Now, the wild card is always Apple. Their entry will redefine the space, for better or worse. It could validate the category for the masses or it could completely overshadow the current players. But Citi’s bet is that EssilorLuxottica, with its first-mover advantage with Meta and its unparalleled distribution in optical stores and luxury boutiques worldwide, is uniquely positioned to stay on top. They’re not just selling tech; they’re selling an identity, and they’ve been doing that for decades. In a market where hardware is only half the battle, that brand power might be the ultimate AI advantage.
