Table of Contents
Introduction
The global market for wearable technology is expected to expand significantly, increasing from USD 61.3 billion in 2022 to an estimated USD 231 billion by 2032. This represents a Compound Annual Growth Rate (CAGR) of 14.60% during the forecast period. The rise in demand for wearable devices is due to technological advancements and the integration of smart features across various sectors. This trend reflects a growing consumer interest in wearable technology.
The market for fitness and wellness gadgets as well as health-monitoring devices is on the rise. This growth is largely due to the increasing adoption of these devices. The Asia Pacific region is expected to see the highest growth rate, thanks to factors such as urbanization, rising disposable incomes, and a mobile-first approach that makes it easy to incorporate wearable technologies into daily life.
The market is also seeing a shift in product offerings, with headwear and eyewear, particularly those with Virtual Reality (VR) and Augmented Reality (AR) capabilities, being the second-largest and fastest-growing segment. This trend is driven by the use of these technologies in fields such as multimedia and healthcare, as well as providing immersive gaming experiences.
The technology market is facing several challenges such as intense competition, the rapid pace of technological evolution, and the need for reliable technology platforms. Additionally, the attractiveness of device designs and the risk of counterfeit products present additional hurdles.
Recent developments in the market show how dynamic the industry is. Key players such as Samsung, Apple, and Xiaomi are launching new products and features. Samsung has recently collaborated with the National Sleep Foundation to address sleep disorders through wearable innovations. Meanwhile, Xiaomi’s Mi Band 8 introduces improved display and design features.
Market leaders are adopting key strategies such as investment in research and development, coupled with strategic partnerships and mergers and acquisitions to sustain growth and innovation. The market’s future outlook is promising, with potential advancements in AR and VR technologies, smart textiles, and devices that offer comprehensive health monitoring and lifestyle management capabilities.
Key Takeaways
- The wearable technology market is projected to reach a value of approximately USD 231 billion by 2032.
- This represents a substantial growth from USD 70 billion in 2023.
- The market is expected to grow at a CAGR of 14.60% during the forecast period from 2023 to 2032.
- The wrist-wear segment dominates the global market, accounting for over 49.45%.
- Headwear & eyewear are expected to be the second-largest and second-fastest-growing segments.
- Consumer electronics is the dominant application segment, representing over 48.95%.
- The Asia Pacific market is expected to witness the highest growth rate, driven by lifestyle changes and increased demand for wearable medical equipment.
- The wearable technology market is highly competitive, with key players including Alphabet Inc., Samsung Electronics Co., Ltd., Apple Inc., and others.
- Recent developments include the launch of Apple Watch Series 6 and the first-ever titanium model of Galaxy Watch3 by Samsung Electronics Co., Ltd.
Wearable Technology Statistics
- Wearable device shipments hit 368.2 million units in 2020.
- Apple’s wearables generated a profit of $6.3 billion in 2020.
- In 2019, 56.7 million people in the US used wearables monthly.
- US wearables segment revenue was $4.05 billion in 2020, with an ARPU of $83.99.
- Global wearables revenue reached $18.98 billion in 2020, with an ARPU of $43.00.
- Connected wearable devices grew from 325 million in 2016 to 722 million in 2019, expected to surpass 1 billion by 2022.
- 30% of middle-income households used fitness trackers in 2020.
- 22% of the global population owned a wearable device in 2020, with daily use by 60% of these users.
- The number of wrist wearables is expected to increase from 66.5 million units in 2019 to 105.3 million by 2023.
- 21% of Americans used smartwatches or fitness trackers in 2019.
- Smartwatch shipments grew from 18.6 million units in 2017 to 27.7 million in 2020.
- Health wearables sales were 223 million units worldwide in 2019, expected to reach 300 million by 2023.
- The global smart glasses market is forecasted to hit $20 billion by 2022.
- Hearables shipments jumped from 48.6 million units in 2018 to 170.5 million in 2019.
- US smartwatch sales increased from 9 million units in 2016 to 22 million by 2020.
- In the US, 25% of smartwatch owners are female, while 63% of fitness tracker owners are male.
- Most wearable users in the US are aged 25-34.
- China, India, and the US are leading in wearable usage, with rates at 34%, 33%, and 32%, respectively.
- Low-income category users represent about 34% of global wearable users, while medium-income category users make up about 41%.
- Wearable technology devices are capable of generating at least 250,000 measurements per day.
- Apple’s wearables, home, and accessories category earned $6.3 billion in revenue in 2019.
Use Cases Of Wearable Technology
- Fitness and Health Monitoring: Wearable technology remains a top fitness trend in 2023, with devices like fitness trackers, smartwatches, heart rate monitors, and GPS tracking devices being widely used. These devices monitor heart rate, calories, activity levels, sleep patterns, and more. The sale of smartwatches, for instance, significantly rose from 9 million units in 2016 to 22 million in 2020 in the US, with Apple leading the market share.
- Women’s Health: A focus area that’s gaining traction is women’s health, with wearables starting to offer features like period prediction and cycle-specific activity insights. Companies like Oura are making significant investments in women’s health and reproductive health research, moving towards more validated and FDA-approved wearable health solutions.
- Innovative Form Factors: Beyond traditional wearables, companies are exploring new form factors, including smart vests for athletes, fashion tech in clothing and accessories, and even smart rings. These innovations offer more personalized and interactive experiences, along with improved safety features through real-time feedback.
- Healthcare Integration: Healthcare wearables enable continuous, real-time patient monitoring, offering critical data for healthcare professionals. Devices now track vital signs and health data, aiding in early detection and intervention of potential health issues. This is also supported by the emergence of wearables with advanced sensors for blood pressure or temperature monitoring.
- Workplace Safety and Productivity in Manufacturing: Wearables are becoming essential in ensuring workplace safety and boosting productivity. Devices equipped with sensors provide real-time alerts on hazardous conditions, monitor worker health parameters like heart rates and body temperatures, and track productivity and efficiency.
- Financial Transactions and Security: In the finance sector, wearables offer a secure and convenient way to authenticate transactions and access sensitive information. For example, NFC-enabled smart rings can authenticate payments at POS terminals, introducing wearable banking to the financial landscape.
Recent Developments
- Movano’s Evie Smart Ring aimed at women was showcased, focusing on health tracking like heart rate, SpO2, and menstrual cycle.
- Fossil Gen 6 Hybrid Wellness Edition was introduced, enhancing hybrid smartwatches with health tracking capabilities.
- Withings U-Scan, a connected urine tracker for analyzing biomarkers related to hydration, ketones, vitamin C levels, and menstrual cycles, was announced.
- Citizen’s second-gen CZ Smart Wear OS 3 smartwatch with a ‘self-care advisor’ powered by IBM Watson was revealed.
- Valencell debuted the world’s first cuffless fingertip blood pressure monitor, pending FDA approval, aiming for a simpler approach to blood pressure monitoring.
- LG Breeze Sleep Earbuds, designed to improve sleep quality through brainwave-tuned sound, were introduced.
Trends and Insights
- Actionable insights from health data, with Fitbit taking a holistic approach to health tracking.
- Women’s health gaining more attention, with wearables moving beyond mere health tracking to potentially offering diagnostic capabilities.
- Fashionable wearables that deliver medical-grade insights, emphasizing the need for designs that support 24/7 wearability.
- Innovative wearable form factors, such as 2-in-1 devices that combine functionality like Huawei Watch Buds.
Conclusion
In conclusion, the wearable technology market’s trajectory is marked by a blend of rapid growth, driven by technological advancements, and the challenges of maintaining innovation and consumer appeal. As the market evolves, it continues to offer substantial opportunities for industry players willing to invest in next-generation wearables and navigate the competitive landscape effectively.
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