LONDON -- Global wearable device shipments climbed past 200 million units in 2025, growing 6% year on year according to Omdia. Xiaomi has reclaimed the top spot for the first time since 2020, capturing an 18% market share to become the world’s largest wearable vendor by annual shipments. Apple followed closely in second place with 17%, while Huawei secured third with 16%. The market is also seeing increased consolidation, with the top five vendors, including Samsung (9%) and Garmin (5%), with the top three in a tight race.

“Wearables are moving from a hardware-driven race to an ecosystem-led competition,” said Omdia Research Manager Cynthia Chen. “With less than one percentage point separating the top three vendors, competitive advantage now depends on seamless cross-device integration and the ability to deliver monetizable, value-added data services.” Xiaomi’s rise reflects a structured multi-category strategy rather than reliance on a single flagship product. Its bands continue to anchor volume in the mass market, while its basic watches, supported by in-house chip development and deeper ecosystem integration, are enabling the brand to move up the value chain. Apple retains a strong premium position, leveraging 5G connectivity and advanced health features, including hypertension monitoring, to sustain high loyalty among its high-value users. Huawei has consolidated its mainstream presence through a broad portfolio, while intensifying its focus on professional sports and medical-grade health applications.

AI and subscription services are reshaping competition, transforming from nice-to-have features into essential revenue drivers of growth and profitability. Wearable bands are increasingly optimized for continuous health monitoring, with some vendors exploring screenless or reduced-screen designs to improve comfort and data continuity. “The wearables profit model is undergoing structural change,” said Omdia Research Director Jason Low. “Algorithms and services are becoming standalone profit centers, with advanced health insights, professional training plans, and AI-powered coaching generating recurring subscription revenue.” For vendors with a higher-priced portfolio, subscription services represent more than just additional revenue. They are becoming essential to maintaining profitability as hardware margins compress due to rising component costs. This recurring revenue model provides a critical buffer against the volatility of hardware pricing. Meanwhile, improved insights into health and sport tracking are designed to increase usage and stickiness, which, in turn, provides more data points for more tailored services.

Looking ahead, Omdia expects the global wearables market to deliver modest single-digit growth in 2026, reflecting not only continued expansion in shipment volume but also a gradual shift in industry value dynamics. Growth will increasingly be driven by on-device AI advancements and the rising demand for more professional-grade sports and health management. Meaningful upgrade cycles will rely on real breakthroughs in substantive health monitoring capabilities. For leading smartwatch vendors, such as Apple, Samsung, and Huawei, progress in key physiological metrics, particularly blood glucose and blood pressure monitoring, will become the primary catalyst for renewed growth. Among the three major categories, smartwatches are expected to show the strongest momentum, combining advanced sensing, AI analytics, and deeper ecosystem connectivity to serve as the most scalable platform for AI agent integration. At the same time, improving subscription and service monetization is strengthening profitability and enabling reinvestment in technology and ecosystem development. Over time, competitive advantage will depend less on shipment scale alone and more on the depth of AI capability and the strength of cross-device ecosystem integration.