China's smart wearable sector set for record financing in 2026: KPMG

(ECNS) — Global professional services firm KPMG said in a report released Monday that China's smart wearable sector is on track for record financing in 2026.

The report defines smart wearables as devices that run operating systems capable of supporting applications. As technology advances and applications expand, it said, these products have become deeply embedded in everyday activities such as sports, rehabilitation, elderly care, and health care.

Investment in the sector surged in 2025, driven by breakthroughs in brain-computer interfaces (BCIs) and smart glasses. The year saw 88 financing deals, with disclosed funding reaching 9.3 billion yuan (about $1.29 billion), the highest on record and well above the combined total of the previous three years.

In the first half of 2026, the sector recorded 83 financing deals, with disclosed funding reaching 8.623 billion yuan, already surpassing the full-year totals for 2022, 2023, and 2024 and equal to more than 90% of the 2025 total.

BCIs have become the hottest segment of China's smart wearable market, the report said. They fall into invasive and non-invasive types: invasive BCIs are moving into clinical use, while non-invasive ones are being rapidly developed and adopted in health management and consumer applications.

In the first half of this year, BCIs accounted for 38 financing deals, or 46% of the sector's total, up from just 17% in 2020. The rising number of deals signals strong capital-market confidence in the field.

(By Tang Yuxian)