Smartwatch Demand Outpacing Broader Hardware Market in 2026, Digitimes Analysis Finds

Smartwatch shipments are growing faster than the broader IT hardware market in 2026, according to a new analysis from Digitimes published August 27. While smartphones and notebook PCs face weaker demand due to higher memory costs and longer replacement cycles, wearables continue to buck the trend.

What{"'"}s Driving Growth

Three factors are fueling the smartwatch surge:

• Health sensor proliferation: ECG, blood pressure monitoring, blood oxygen, and skin temperature sensors are now standard on flagships from Apple, Samsung, and Garmin, driving medical-adjacent demand
• AI integration: On-device and cloud AI features — from Gemini on the Pixel Watch 5 to Garmin{"'"}s training intelligence — are creating new use cases beyond fitness tracking
• Busy fall calendar: The Garmin Fenix 9, Pixel Watch 5, upcoming Apple Watch Series 12, and recent Galaxy Watch 9/Ultra 2 are all landing within weeks of each other

Industry Shift Toward Specialization

The report notes a broader industry shift from all-in-one "wrist computers" toward compact, AI-driven devices designed for long battery life and seamless health tracking. Products like the Garmin Cirqa and WHOOP 5 represent this screenless, sensor-forward approach.

What This Means for Buyers

Strong demand means fewer deep discounts on new models through the fall, but it also means more competition and better products. If you{"'"}re shopping now, check our smartwatch comparison guide for the best current deals and upcoming launches.