Omdia: Xiaomi Reclaims Wearable Band Crown for the First Time Since 2020
Global wearable band market share, by category, 2024-2025
Global wearable band market shipment, by top vendors, 2025
AI and subscription services are reshaping competition, transforming from nice-to-have features into essential revenue drivers of growth and profitability. Wearable bands are increasingly optimized for continuous health monitoring, with some vendors exploring screenless or reduced-screen designs to improve comfort and data continuity. “The wearables profit model is undergoing structural change,” said Omdia Research Director Jason Low. “Algorithms and services are becoming standalone profit centers, with advanced health insights, professional training plans, and AI-powered coaching generating recurring subscription revenue.” For vendors with a higher-priced portfolio, subscription services represent more than just additional revenue. They are becoming essential to maintaining profitability as hardware margins compress due to rising component costs. This recurring revenue model provides a critical buffer against the volatility of hardware pricing. Meanwhile, improved insights into health and sport tracking are designed to increase usage and stickiness, which, in turn, provides more data points for more tailored services.
Looking ahead, Omdia expects the global wearables market to deliver modest single-digit growth in 2026, reflecting not only continued expansion in shipment volume but also a gradual shift in industry value dynamics. Growth will increasingly be driven by on-device AI advancements and the rising demand for more professional-grade sports and health management. Meaningful upgrade cycles will rely on real breakthroughs in substantive health monitoring capabilities. For leading smartwatch vendors, such as Apple, Samsung, and Huawei, progress in key physiological metrics, particularly blood glucose and blood pressure monitoring, will become the primary catalyst for renewed growth. Among the three major categories, smartwatches are expected to show the strongest momentum, combining advanced sensing, AI analytics, and deeper ecosystem connectivity to serve as the most scalable platform for AI agent integration. At the same time, improving subscription and service monetization is strengthening profitability and enabling reinvestment in technology and ecosystem development. Over time, competitive advantage will depend less on shipment scale alone and more on the depth of AI capability and the strength of cross-device ecosystem integration.
(To view the table, please visit https://bwnews.pr/3MRqvcz)
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Fasiha Khan
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Eric Thoo
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This news is a press release provided by Omdia.
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