TechInsights: Smartwatch sales are expected to increase by 5% in 2025.

The wearable device team at TechInsights focused their insights on smartwatches released at the CES on the third day of 2025. The team expects smartwatch sales to increase by 5% in 2025, driven by the increase in AI functionality, powerful new models, improvement in sensor and feature combinations penetrating into lower price ranges, consumers upgrading from fitness bands and basic smartwatches to watches supporting third-party apps, improved economic conditions, strong emerging markets, and continued consumer interest in health and fitness. After experiencing a decline in smartwatch sales for six consecutive quarters, the market is starting to mature, with a decrease in the proportion of new buyers and sales of smartwatches returning to a growth trajectory. Although smartwatches had a weaker presence at CES this year (especially compared to smart rings and smart glasses), there were still several noteworthy product launches, including: Garmin introduced the Instinct 3, offering three versions - one with a new AMOLED display, one with CECEP Solar Energy charging for "infinite battery life" (weather-dependent!), and one with a lower price and simpler functionality. These three versions come in two case sizes and the battery life is measured in days rather than hours. Despite Garmin's large and sometimes confusing product line, they target a highly segmented market, with growth in the past few quarters surpassing the top three smartwatch suppliers - Apple, Samsung, and Huawei. Amazfit launched the Active 2 at an amazing $99 retail price. Interestingly, it first debuted in the US market, with a global release scheduled for February. This is a great example of high-end features entering the lower price range, including offline maps, AMOLED display, improved heart rate sensor, and AI voice assistant. With a battery life of up to 10 days, the upgraded version, priced $30 higher, comes with durable sapphire glass and NFC for contactless payments. Amazfit hopes to reverse the trend of declining sales in the past few quarters. There were also many small smartwatch suppliers at the exhibition, with a lot of design creativity, offering models ranging from cellular-connected watches for children to models with built-in headphones. Examples include the Rooftop Shark AI-10 smartwatch, Aurafit G12 smartwatch, and children's watches Pinwheel, MyFirst, and Watchout Wearables.