This paper focuses on the applicability of various new product development (NPD) models to small and medium-sized enterprises (SMEs) and the challenges they face, including limited resources, informal innovation systems, and difficulty obtaining external feedback. Traditional NPD models offer structure but may be too rigid for SMEs, while Agile methodologies provide flexibility but can be challenging to implement outside the software industry. Hybrid models, blending traditional and Agile approaches, offer a good compromise. Through comparative analysis, the study evaluates the strengths and weaknesses of different NPD models in the SME context. By utilizing modern technologies like additive manufacturing and artificial intelligence, the NPD process can be accelerated, aligning with Agile principles to provide faster feedback and enhance overall efficiency. In conclusion, SMEs are encouraged to consider hybrid solutions to innovate and compete effectively. Future research should address specific challenges in different industry sectors and focus on scalability.