I don’t think there is much innovation around currently, lots of variations on a theme, lots of oddball for the sake of it stuff, lots of revisiting past ideas.
Then there are things like AI, and other emerging technologies being looked into, but as far as I can see not much innovation in terms of bringing new ideas and means of expression, or user interface.
I think the technology exists to create electronic instruments as (or more) expressive than acoustic instruments, to create sequencers with features not yet seen, and to control all of this with precision, reliability and without being fiddly or awkward to use.
But I’m ok with it, sometimes half the fun is coming up with your own concepts and adapting and combining gear into your own instrument.
DIY instruments are getting easier to create with the numerous platforms available now in hardware and software.
I think one to watch is Tats from Korg, he seems like he is interested in making interesting stuff, and he certainly seems to know what he is doing wrt user interface and interesting features.
Teenage Engineering could be much more interesting than they are, but I think they have been drinking their own for too long, and their quality control is shameful, and that is a shame. Lots of design faux pas in most of their products, ironic as they are a design company.
Elektron has some extremely talented people, but I think they are a bit too large too innovate now, maybe?
Polyend have done some interesting things, I think they are also worth watching.
Going slightly off topic here, but not much gear is built to last, or built with longevity/servicability and environmental impact in mind, that is pretty criminal IMHO.