Meta eyes doubling Ray-Ban smart glasses output to 20 million units as AI wearables surge

Meta and EssilorLuxottica Target Aggressive Production Expansion

Meta and EssilorLuxottica are considering doubling production capacity of their AI-powered Ray-Ban smart glasses to 20 million units annually by the end of 2026, according to Bloomberg News1

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. The potential increase in production, driven by strong demand, could see capacity exceed 30 million units if market conditions warrant, though no final decision has been reached3

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. EssilorLuxottica, the European firm behind Ray-Ban glasses, is already nearing its current production target of 10 million pairs by late 20261

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. The eyewear giant said in October it would accelerate production capacity for the booming smart glasses business.

Supply Shortage Signals Unprecedented Market Appetite

The push for doubling production capacity comes as Meta paused international expansion of the Ray-Ban Display glasses to the United Kingdom, France, Italy and Canada due to a supply shortage, prioritizing U.S. shipments1

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. Meta described the situation as "unprecedented demand and limited inventory," with product waitlists extending well into 20264

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. The Ray-Ban Display, launched in September at $799, features a built-in screen that displays text messages, video calls, photos and results from Meta's AI service4

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. Counterpoint Research estimates Meta held approximately 73% of the global smart glasses market in the first half of 2025 and forecasts a compound annual growth rate of more than 60% through 20292

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Strategic Shift From Metaverse to Wearable AI Devices

As Meta expands its AI smart glasses production, the company is simultaneously cutting more than 1,000 jobs from its Reality Labs division, which has burned more than $60 billion since 20201

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. The layoffs affect about 10% of Reality Labs' workforce, with Meta closing three VR game studios: Twisted Pixel, Sanzaru Games, and Armature Studio2

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. Meta CTO Andrew Bosworth stated in an internal memo that resources will shift away from immersive VR and the metaverse toward more practical, large-scale wearable AI devices and mobile experiences2

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. This strategic pivot reflects Meta's effort to lessen dependence on the smartphone ecosystem while pursuing faster-monetizing, demand-driven products.

Partnership Positions Meta for Next-Generation Wearable Dominance

Meta and EssilorLuxottica began their partnership in 2019 and launched Ray-Ban branded frames in 2021, promising to upend the smartphone era by letting wearers take photos and videos through tiny cameras in the lenses, stream content to Meta apps and talk to an AI assistant1

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. EssilorLuxottica owns brands including Ray-Ban and Oakley, as well as retail chains such as Sunglass Hut and LensCrafters, giving Meta strong support to scale production and expand market share2

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. EssilorLuxottica CEO Francesco Milleri has said smart glasses fit the group's wearable and medical technology strategy and could eventually replace smartphones2

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. Meta has strengthened its collaboration with EssilorLuxottica by taking a stake in its partner5

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. Analysts warn that rapid capacity expansion will strain costs and margins, with smart glasses still less profitable than traditional eyewear in the near term, though economies of scale are expected to gradually improve financial performance as volumes increase and component costs fall2

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