The global smart glasses market is poised for far faster expansion than previously expected, with analysts predicting the category will become a major pillar of consumer technology over the next two decades. HSBC analysts say the accelerating uptake of connected eyewear is likely to significantly benefit EssilorLuxottica, one of the sector’s early leaders.

HSBC has lifted its long-term estimate for the smart glasses industry to approximately $A300 billion by 2040, representing an increase of roughly one third on earlier forecasts. The upgrade reflects strong early momentum for smart glasses developed by EssilorLuxottica in partnership with Meta Platforms, the parent company of Facebook.

User numbers are also expected to surge. HSBC now forecasts the global smart glasses user base will grow to around 289 million people by the mid-2030s, up from about 15 million in 2025. That represents growth of more than 1,800 per cent over the period, driven by improving hardware, broader use cases and rising consumer acceptance.

Analyst Anne-Laure Bismuth said increasing competition is likely to accelerate innovation across the sector. As more companies enter the market, research and development spending should rise, helping the entire ecosystem mature more quickly and reach critical mass.

On the back of the stronger outlook, HSBC has upgraded EssilorLuxottica shares to a buy rating after maintaining a hold stance for nearly two years. The stock responded positively, rising as much as 2.9 per cent following the note.

Demand for Ray-Ban Meta smart glasses is already prompting discussions between the two companies about expanding manufacturing capacity. According to reports, production of AI-enabled frames could potentially double by the end of this year as the partners seek to meet demand and defend their lead against emerging competitors.

HSBC has also reiterated a positive view on Meta, arguing the company is well positioned to shape the future smart glasses computing platform by combining software services with premium hardware. The bank expects other technology heavyweights, including Apple, Samsung and Amazon, to enter the smart glasses market between 2026 and 2027, adding further momentum to the category.

Analysts believe the arrival of more major players will only strengthen the market’s trajectory, reinforcing smart glasses as one of the most promising new frontiers in consumer technology.