Global wearable band shipments rose 3% year-on-year to 54.6 million units in the third quarter of 2025, according to Omdia’s latest research. While volume growth remained modest, the market’s value surged 12% to $12.3 billion, driven by a strong shift toward premium devices. The average selling price (ASP) increased by 9% annually to $225, reflecting growing demand for advanced features and higher-end models. The top five vendors—Xiaomi, Apple, Huawei, Samsung, and Garmin—accounted for 84% of the market’s total value and 63% of shipment volume. Their combined scale, financial strength, and investment in research and development are making it increasingly difficult for smaller players to compete on price or innovation. A dual strategy is fueling growth across price segments. In the budget category, basic wearable bands saw a 12% year-on-year increase, led by Xiaomi, Huawei, and Samsung expanding their low-cost portfolios. The $50–99 price band grew by 56%, while the sub-$50 segment declined by 2%. At the same time, mid-range smartwatches in the $200–300 range grew 21%, driven by feature-rich models offering flagship capabilities at accessible prices. The Apple Watch SE 3 exemplifies this trend, bringing cellular connectivity and advanced health monitoring to a lower price point. Premium segments continue to drive revenue growth. Shipments in the $500–700 and $700+ price bands rose 29% and 34% respectively. Vendors are enhancing devices with cutting-edge features such as generative AI, 5G connectivity, and satellite emergency messaging. The latest Apple Watch Series 11 and new Garmin outdoor models now include emergency satellite communication, while Samsung’s Galaxy Watches integrate AI-powered voice assistants like Gemini for health and fitness guidance. Despite smartwatch shipments growing only 1% in 3Q25, value rose 8%, underscoring the ongoing premiumization trend. Jack Leathem, Omdia analyst, emphasized that smartwatch vendors must strengthen native software and services while collaborating with third-party developers to deliver seamless, feature-rich experiences. Looking ahead, the future of wearables lies in cloud-based generative AI coaches that leverage device computing power for personalized health and fitness insights. Integrating non-wrist devices such as smart rings and true wireless earbuds with health sensors will be key to building comprehensive wellness ecosystems and unlocking cross-selling opportunities. These advancements are essential to solidifying the smartwatch’s value proposition beyond basic activity tracking and ensuring long-term market growth.