The wearable band market grew 3% to 54.6 million units in Q3, but revenue jumped 12% to $12.3 billion as consumers shifted toward higher-priced devices. The average selling price rose 9% to $225, driven by major players — Xiaomi, Apple, Huawei, Samsung and Garmin — which now control 84% of market value. Budget growth came from a rebound in basic bands, especially in the $50–99 range, while smartwatches expanded in the $200–300 tier as premium features trickled down.
Premiumization continues to accelerate: the $500–700 and $700+ segments grew 29% and 34% thanks to new models featuring generative AI coaches, advanced health tools, satellite messaging and even 5G in the latest Apple Watch. Although smartwatch shipments rose only 1%, their value increased 8%, showing strong demand for higher-end devices.
Omdia says the future of smartwatches depends on richer native software, cloud-based generative-AI health coaching and integrating other wearables like smart rings and health-enabled earbuds to build a complete wellness ecosystem.
Source: Omdia
