Smart glasses market will be worth US$200 billion by 2040: HSBC

[LONDON] The rapid growth of the market for smart glasses is set to accelerate further, providing a boost for prime beneficiary EssilorLuxottica, HSBC Holdings analysts said.

Analysts including Anne-Laure Bismuth increased their estimate of the industry’s size by a third to US$200 billion by 2040, reflecting the early success of glasses made by EssilorLuxottica in collaboration with Facebook parent Meta Platforms.

They foresee a more than 1,800 per cent jump in smart glasses users to 289 million by the end of the next decade, up from 15 million in 2025.

“The more competition, the more likely this market will gain critical mass and attract R&D efforts to the benefit of all players,” Bismuth wrote in a note. HSBC upgraded the stock to buy after having a hold recommendation for almost two years. The shares rose as much as 2.9 per cent.

With sales of Ray-Ban Meta frames taking hold, the companies are discussing potentially doubling production capacity for AI-powered smart glasses by the end of this year, in a bid to capture growing demand and head off rivals, Bloomberg News reported this week.

HSBC kept a buy rating on Meta, which it thinks can play a major role in the smart glasses computing platform, and leverage its services with top-end hardware. The bank expects Apple, Samsung Electronics or Amazon.com to join the smart glasses race in 2026-27.

SEE ALSO

Chinese smart glasses firms eye overseas conquest

HTC bets its open AI strategy to drive smart glasses sales

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

“The more competition, the more likely this market will gain critical mass and attract R&D efforts to the benefit of all players,” the analysts said. BLOOMBERG