As the size and cost of microprocessors continues to shrink, these devices are starting to be integrated into various apparel and textile devices. These smart clothing devices have the ability to interact with the user or the user’s environment through embedded sensors or conductive fabrics. This research analysis examines the smart clothing market and the drivers and inhibitors for both manufacturers and users of this technology. It includes a brief evolution of wearable devices, a look at the industries being impacted by this technology, smart clothing, and other wearable device forecasts, and how smart clothing fits into this wearable technological progression. It closes with a look at the vendors that are operating in this space, what is currently available in the market, and what the future holds for smart clothing.