According to the latest data from Omdia, global shipments of wearable devices are projected to surpass 200 million units in 2025, representing a 6% year-on-year increase. For the first time since 2020, Xiaomi has reclaimed the top position, capturing an 18% market share to become the world's largest wearable device vendor by annual shipments. Apple follows closely in second place with a 17% share, while Huawei ranks third with 16%. The market shows a clear trend of consolidation. The top five vendors also include Samsung (9%) and Garmin (5%), with competition being particularly intense among the top three. A research manager at Omdia noted that competition in wearables is shifting from being hardware-driven to ecosystem-dominated. She highlighted that the market shares of the top three vendors differ by less than 1%, and competitive advantage now depends on seamless cross-device integration and the ability to deliver profitable value-added data services. Xiaomi's rise reflects its systematic multi-category strategy rather than reliance on a single flagship product. Its wristbands continue to secure a solid sales foundation in the mass market, while its entry-level smartwatches, supported by in-house chips and deeper ecosystem integration, are driving the brand up the value chain. Apple maintains a strong position in the premium segment, retaining loyalty among high-value users through 5G connectivity and advanced health features, including hypertension monitoring. Huawei has solidified its mainstream market presence with a broad product portfolio while increasing its focus on professional sports and medical-grade health applications. Artificial intelligence and subscription services are reshaping the competitive landscape, transitioning from optional features to core drivers of growth and profitability. Wearable wrist devices continue to enhance health monitoring capabilities, with some manufacturers exploring screenless or simplified screen designs to improve wearing comfort and data continuity. A research director at Omdia stated that the profit model for wearables is undergoing a structural transformation. Algorithms and services are becoming independent profit centers, generating recurring subscription revenue through advanced health insights, specialized training plans, and AI-powered coaching services. For vendors with high-priced product portfolios, subscription services serve not only as additional revenue streams but also as a critical buffer to maintain profitability as hardware margins are squeezed by rising component costs. Meanwhile, more precise health and fitness tracking insights aim to increase usage frequency and user engagement, thereby generating more data points to support increasingly personalized services. Looking ahead, Omdia anticipates moderate single-digit growth for the global wearable device market in 2026, reflecting not only continued shipment expansion but also a gradual shift in the industry's value structure. Growth will increasingly rely on advancements in on-device AI and rising demand for more specialized sports and health management capabilities. Substantive breakthroughs in health monitoring functionalities will be essential to drive meaningful upgrade cycles. For leading smartwatch makers such as Apple, Samsung, and Huawei, progress in tracking key physiological metrics—particularly blood glucose and blood pressure—will be a major catalyst for the next wave of growth. Among the three main product categories, smartwatches are expected to demonstrate the strongest growth momentum, combining advanced sensing technology, AI analytics, and deeper ecosystem connectivity to become the most scalable platform for AI agent integration. At the same time, improved monetization of subscriptions and services is enhancing profitability and supporting reinvestment in technology and ecosystem development. Over time, competitive advantage will depend less on shipment volume and more on the depth of AI capabilities and the strength of cross-device ecosystem integration.