Global Smartwatch Market Sees Renewed Expansion In 2025
After a challenging period of stagnation and decline during the previous year, the global smartwatch industry has officially returned to a positive trajectory in 2025. New data released by Counterpoint Research indicates that global shipments are projected to increase by seven percent year over year by the end of 2025. This recovery marks a significant turnaround following the steep downturn experienced throughout 2024 when consumer demand softened. The report highlights that the resurgence is being driven largely by renewed competition between major technology giants and substantial growth in specific regional markets. Analysts suggest that this upward trend signals a stabilizing interest in wearable technology after the post-pandemic market corrections.
A primary factor fueling this growth is the aggressive expansion of the Chinese market which has outperformed other regions significantly. China has emerged as a key engine for the global industry with its market share rising from twenty-five percent in 2024 to an estimated thirty-one percent in 2025. This surge is attributed to strong local adoption of domestic brands and government subsidy programs that encouraged consumers to upgrade their devices. Huawei played a pivotal role in this regional dominance and even briefly overtook Apple as the global leader in shipments during the second quarter of the year. The intensified rivalry between these two tech behemoths has revitalized consumer interest and accelerated the development of new features.
Apple successfully reclaimed its top position in the third quarter by launching a well-received lineup of new devices. Shipments for the company rose significantly as they introduced the affordable Watch SE 3 along with the premium Watch Ultra 3 models. These releases helped broaden the brand’s appeal across different price tiers and ended a streak of seven consecutive quarters of shipment declines. The strategy to cater to both budget-conscious buyers and high-end outdoor enthusiasts proved effective in stimulating upgrade cycles in North America and Europe. Consumers responded positively to the clearer segmentation of the product lines which made the choice easier for new buyers entering the ecosystem.
Technological innovation has also played a crucial role in convincing users to replace their older wearables this year. Manufacturers have focused heavily on integrating artificial intelligence into their health tracking suites to offer more personalized coaching and analysis. The report notes that 2025 saw the introduction of advanced features such as satellite connectivity and 5G Redcap support in mainstream models. Premium devices have started adopting MicroLED displays which offer superior brightness and battery efficiency compared to previous screen technologies. These hardware improvements gave consumers tangible reasons to upgrade beyond simple aesthetic changes.
Senior Research Analyst Anshika Jain from Counterpoint Research emphasized that the market landscape shifted notably due to these strategic hardware and software updates. She pointed out that the industry is seeing a growing consumer preference for mid-tier and premium smartwatches over basic fitness trackers. This shift towards higher value devices suggests that users are looking for comprehensive health monitoring tools rather than simple step counters. The combination of economic recovery in key regions and the maturing of wearable health technology has set a strong foundation for continued performance.
We are interested to know if these new features would convince you to upgrade your current wearable device so please share your thoughts in the comments.
