Smartwatch Market Set to Swing to Growth in 2025

Global smartwatch shipments are forecast to climb 7% by the end of 2025, swinging to growth after declining for the first time in 2024, according to Counterpoint Research. In 2025, the smartwatch landscape shifted notably, highlighted by the introduction of new hardware and software features, growing consumer preference for mid-tier and premium smartwatches, and an increased industry focus on health-related functionalities. The recovery was led by Huawei and supported by Apple’s new lineup.

“China has emerged as the global smartwatch market’s key growth driver, with three of the top five brands originating from the country. The government subsidy program encouraged upgrades, while Huawei, Xiaomi, and Imoo each drove momentum due to their distinct strategies to sustain consumer engagement. Combined with rising incomes and strong local adoption, these factors lifted China’s share from 25% in 2024 to an estimated 31% in 2025," said Anshika Jain, Senior Research Analyst at Counterpoint Research.

“Apple’s latest smartwatch lineup drove a 12% YoY shipment increase in its launch quarter, with annual shipments projected to rise 12% in 2025. This rebound was largely due to the highly anticipated introduction of the more affordable Watch SE 3 and the ultra-premium Watch Ultra 3 models, which have broadened Apple’s appeal to consumers across various price tiers. The combination of these launches and the addition of new capabilities such as 5G support, satellite connectivity, and health features like hypertension notifications has enabled Apple to make a comeback after seven consecutive quarters of YoY shipment decline,” added Jain.

“In 2025, the smartwatch industry stood out, as it saw a wave of feature-led innovation that fundamentally elevated device capabilities. AI integration, 5G support, satellite connectivity, and the adoption of MicroLED displays have been among the most notable additions. Even lower-priced models are now offering AI-driven experiences and improved health sensors to re-engage users who had previously moved away from basic smartwatches. This renewed focus on feature upgrades and user value is gaining traction and is expected to support market growth in 2025,” said David Naranjo, Associate Director at Counterpoint Research.