Below the Cuff: How AI and Miniaturization are Re-energizing Wearables

The global market for hand-worn wearables is entering a high-growth phase, with total retail revenues projected to approach $100 billion over the next five years. This momentum is fueled by a significant rebound in the smartwatch category and the rapid emergence of smart rings as a mainstream health-monitoring tool.

As always, this newsletter is designed to be a light, easy read on this week’s topic. For deeper insight into individual markets, we cover 200+ equipment markets on our market intelligence platform, dataportl.

After a market correction in 2023 and 2024, the smartwatch sector began a strong rebound in 2025. This resurgence is driven by the launch of advanced models featuring 5G standalone capabilities and AI-driven health monitoring, such as hypertension tracking.

Leading global vendors including Apple, Samsung, Huawei, and Xiaomi are successfully leveraging these high-performance features to trigger new replacement cycles in mature markets while expanding their reach in emerging economies.

Smart rings have transitioned from a specialist niche into a high-growth mainstream category, boasting a projected CAGR of nearly 20%. The market was validated in 2024 by the entry of major tech giants like Samsung, which established the ring as a viable "set-and-forget" passive data collector.

Unlike more active wearables, smart rings are becoming essential for continuous, AI-driven preventative care and deep medical integration, locking users into broader health ecosystems through advanced biometric monitoring.

This article is based on dataportl’s ongoing tracking of global device and equipment markets. dataportl provides structured visibility across 200+ markets, helping teams understand where demand is forming, how it’s changing, and which players are active in each vertical.

For teams that need to stay close to how demand is shifting across multiple markets, dataportl acts as a single reference point for ongoing analysis and planning.

With that, back to the article.

The fitness band market is currently in a sustained contraction phase. While they remain a primary entry point for mass-market health tracking in emerging economies, they are losing ground to affordable smartwatches that now offer larger high-resolution displays and similar battery life at comparable price points. Consequently, fitness bands are being relegated to a niche role for price-sensitive demographics or specific verticals requiring minimalist trackers without a full operating system.

For product marketing and semiconductor professionals, the market shift emphasizes that ecosystem strength is now as critical as hardware specifications. The rapid growth of smart rings provides a significant opportunity for sensor miniaturization, while the smartwatch rebound proves that integrating AI and advanced connectivity remains the most effective way to maintain high-value retail revenues.

As the market approaches the $100 billion mark, success will depend on whether brands can transition from selling simple hardware to providing indispensable, data-rich health platforms.

This market forms part one of dataportl’s 200+ device coverage. Displayed on our dashboard and used by teams to track how demand evolves over time, where volume is concentrating by region, and which brands/OEMs are driving scale. Market Data. Made Simple.