Smart textiles are adaptive materials that use established textile methods to integrate multifunctionalities beyond apparels. Despite recent advancement, a significant gap exists between commercial needs and the academic state of the art. In this perspective, we aim to address the gap by (i) holistically investigating smart textile system operation, (ii) exploring production methods and materials for stimuli-responsive smart textiles, (iii) discussing key emerging application areas for stimuli-responsive textiles, and (iv) identifying markets, production techniques, and strategies for future development. Stimuli-responsive smart textiles rely on materials and processes to interact with the environment and wearer. Smart textile applications, such as assistive soft robotics, smart healing, and thermal comfort regulation, require textiles to meet the needs of form and function. Smart textile commercialization requires the identification of markets ready for adaptive textiles, wherein a smart phone or patch does not address the consumer needs. Interdisciplinary collaborations can focus efforts to the right applications, bridging the gap between academic research and product relevance, bringing smart textiles into the future.