Smartwatches have dominated wearable technology for years, but the next phase of growth is taking shape elsewhere. AI glasses are selling at a rapid pace, smart rings are gaining ground, and screenless fitness trackers are attracting some of the industry's biggest names.
For investors, the shift is creating opportunities beyond the smartwatch market, even as competition threatens the companies leading these newer categories.
Smartwatch growth is losing steam
CCS Insight expects the global wearables market to shrink 3% in 2026, with smartwatch shipments falling 4%. Watches accounted for 90% of wearables last year, making their slowdown difficult for the broader industry to offset.
Consumers have fewer reasons to upgrade, while higher memory and component costs are making devices more expensive. Average smartwatch prices are forecast to rise 12% this year, adding another obstacle for manufacturers trying to stimulate demand.
The slowdown hasn't been uniform, however. Omdia found that smartwatch shipments rose 6% in Q2, helped by demand for sports-focused models, even as overall wearable band shipments declined 2%.
Where Wearables Growth Is Going in 2026
Bar chart. Growth (%). AI glasses: Growth (%) 263%. Smart rings: Growth (%) 53%. Smartwatches: Growth (%) -4%. Total wearables: Growth (%) -3%.
Meta takes an early lead
The clearest growth is coming from AI glasses. Global shipments surged 263% in the first half of 2026, according to Counterpoint Research, with Meta Platforms dominating the market for models without built-in displays.
Meta captured 94% of that segment, while glasses featuring see-through displays grew even faster at 449%. Rokid led the latter category with 41% market share, followed by Meta at 37%.
The numbers have encouraged more competition. Alphabet, Samsung Electronics, and Apple are expanding their efforts in the category, although Meta already has a substantial head start.
EssilorLuxottica, which sells AI glasses alongside Meta, is benefiting from that early demand. The companies sold more than 7M pairs in 2025, and EssilorLuxottica's CEO believes annual sales could reach 10M by the end of 2026.
Smart rings attract bigger rivals
Smart rings are following a similar growth path, although they serve a different purpose. Shipments are expected to rise 53% to 6M units this year and reach 15M by 2030, according to CCS Insight.
Interestingly, about 75% of ring owners also have a smartwatch. That suggests consumers are buying rings for additional health and fitness tracking rather than abandoning their watches altogether.
Oura, a privately held company, has been the biggest beneficiary so far. It sold 3.6M rings in the 12 months ending June 30, while revenue climbed 74% to $1.21B over nine months.
But its success is attracting larger competitors. Alphabet's Google has gained traction with its screenless Fitbit Air tracker, while Apple is reportedly developing a fabric fitness band with a separate sensor module, although a launch isn't expected before 2028.
Oura's growth also hasn't guaranteed an easy reception from investors. The company postponed its IPO on Sept. 29, hours before pricing, after seeking a valuation of up to $15.6B. Market uncertainty was the stated reason, but competition remains a longer-term concern.
D.A. Davidson analyst Gil Luria has questioned how necessary Oura's products would remain if Apple introduced its own ring.
Where investors can look
For investors seeking exposure to the shift, the companies worth watching aren't necessarily the ones selling the newest devices. Their prospects depend on whether they can turn early demand into sustained sales without losing ground to larger competitors.
Meta and EssilorLuxottica already have an established position in AI glasses, while Garmin is benefiting from continued demand for specialized sports watches. Garmin's smartwatch market share reached 15%, and its Q2 revenue rose 11% to $2.02B, supported by 25% growth in its fitness business.
Apple faces a different challenge. It still controls 46% of global smartwatch shipments, but that leadership comes in a category expected to contract. Its rumored 2027 glasses and later screenless tracker could provide new avenues for growth, although neither is available to consumers yet.
The next test is whether glasses and rings can move beyond early adopters and become products people regularly replace and upgrade. Meta has the advantage in glasses, Oura leads rings, and Garmin has found strength in specialized watches. With Apple and other major technology companies preparing competing products, today's market leaders still have plenty to prove.
