Smartwatches Still Lead, but 10 Million Emerging Devices Are Changing the Shape of Wearables

The wearables market continues to expand, though the conditions shaping that growth are changing rapidly. That’s according to the latest Global Wearables Market Outlook report from Futuresource Consulting, which forecasts 229 million shipments worldwide in 2026, a 5.1% increase year on year.  

Retail value is expected to increase even more, at 6%, generating $57 billion. And while those numbers point to continued success, the real story is where the opportunity is strengthening, where it’s losing momentum, and which device types are starting to command the industry’s attention. 

“Wearables are becoming more defined in purpose and more competitive in execution,” says Kavish Patel, Market Analyst at Futuresource Consulting. “We’re seeing the market develop along multiple tracks, all at once. Established categories are deepening through AI, health and ecosystem integration, while newer form factors are opening up fresh areas of demand. That creates opportunity, but it also raises the bar for everyone competing in the space.” 

Scale still matters, but the market is shifting 

Smartwatches continue to hold the high ground, with 93.2 million units shipped in 2025 and further growth expected through the forecast period. Their position still rests on a powerful mix of health tracking, connectivity and premium ecosystem value, particularly in North America and Europe, while China and Latin America continue to support broader volume growth. 

What has changed is that the smartwatch category is no longer carrying the whole market on its own. Wearables growth is being shared more widely, and with that comes a more fragmented competitive landscape. 

New form factors are no longer a sideshow 

In particular, smart glasses and smart rings are beginning to carry real strategic weight.  

Smart glasses shipments rose to 6.1 million units in 2025, with Futuresource forecasting rapid expansion through to 2030 as improvements in AI, voice control and component miniaturisation continue to strengthen the proposition. Meanwhile, smart rings reached 4.1 million units in 2025 and are building traction through discreet, low-friction health tracking with strong relevance in sleep, stress and women’s health. 

“In comparison to smartwatches, these two categories are still relatively small,” says Patel, “but they are shaping the future path for innovation. They also reflect a wider shift in consumer expectations, with greater appetite for devices that feel lighter, less intrusive and more specialised.” 

Ecosystem value moves into the spotlight 

The report points to a wearables market increasingly shaped by connected-device ecosystems, where watches, glasses, rings and smartphones all work together as part of a broader digital environment. 

Advances in on-device AI, sensor fusion and next-generation chip platforms are giving wearables more autonomy and more relevance throughout the day. It’s a watershed moment, where value is accumulating around holistic connected consumer experiences. For brands, the competitive question is becoming more layered, with strategic decisions moving beyond which device to build, and towards how devices fit into a larger system of services, data and interaction. 

The lower end is under pressure 

Not every segment is keeping pace. Activity trackers continue to contract, with Futuresource forecasting an 8.9% drop in volume CAGR through to 2030 as consumers drift towards more capable devices.  

The decline is a clear signal that simpler hardware is losing ground when it can’t justify its place through richer features or stronger ecosystem relevance. Pressure at the lower end is likely to intensify as consumer expectations continue to rise. 

“The market is becoming far more selective,” says Patel. “There’s no doubt that the growth is still there, but consumers are gravitating to devices that can clearly earn a place in their lives, whether through deeper health insight, stronger AI utility or tighter ecosystem integration.” 

To learn more, get in touch with luke.brodin@futuresource-hq.com or visit here. 

About Futuresource Consulting 

Futuresource Consulting provides the insights that power the world’s leading technology and media companies. For more than 30 years, the firm has combined rigorous data, sector expertise and a forward-looking view of market change. Its syndicated research, consulting services and industry partnerships span consumer electronics, entertainment, Pro AV, education and emerging technologies. 

Press contact: 

Nicola Finn, Head of Marketing and Communications, Futuresource Consulting 

nicola.finn@futuresource-hq.com