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The smartwatch market size is forecast to increase by USD 38.81 billion, at a CAGR of 14.94% between 2023 and 2028.
The market's growth hinges on key factors including advancements in the semiconductor industry, investments in telecommunication network infrastructure, and heightened awareness surrounding the benefits of a healthy lifestyle. These elements collectively drive demand for innovative technologies, foster expansion in telecommunication capabilities, and fuel consumer interest in health-conscious products and services. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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The market is being primarily driven by the increasing demand for fitness tracking and health monitoring features, compelling manufacturers to integrate advanced functionalities like blood oxygen and SpO2 sensors, stress monitors, and electrocardiograms. Rising consumer awareness about personal health and wellness is fueling the adoption of smartwatches with features such as heart rate monitors, sleep trackers, and activity trackers. However, challenges include addressing cultural factors and local language support, as well as ensuring compatibility with different operating systems like iOS and Android amidst varying levels of smartphone penetration. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Technological advances in the semiconductor industry are the key factor driving the market. The global smartwatch market is witnessing a surge in demand, with consumers prioritizing sleek design, compactness, and operational efficiency. Technological advancements in electronic components, notably chip system-on-a-chip (SoC) technology and microelectromechanical systems (MEMS), are revolutionizing smartwatch development with sleep trackers and activity trackers. SoC technology enables manufacturers to reduce printed circuit board space and integrate numerous electronic components into compact smartwatches.
Moreover, the evolution of MEMS technology facilitates the integration of additional features into smartwatches by enabling the development of microsensors and microactuators. This innovation drives device miniaturization and enhances the capabilities of wearable electronic devices. Consequently, MEMS components, with their size and cost efficiency advantages, are increasingly integrated into smartwatches, meeting the demands of consumers seeking enhanced fitness tracking and health monitoring features in their wearable technology. Thus, technological advances in the semiconductor industry will drive the market during the forecast period.
Medical and fitness accounting for significant market share is one of the primary market trends. Monitoring health has been the most advantageous aspect of wearable technology. Not only does it help fitness enthusiasts by providing them with the necessary health parameters, but it also aids patients by providing insights into their conditions. People are more worried about their health, and this has led to an increase in the adoption of fitness trackers. The wearable fitness tracker, and since the popularity of smartwatches is increasing significantly, they have multi-functional features for recording health parameters such as pulse rate and blood pressure, among others.
Moreover, the accelerometers integrated into wearable devices can detect convulsions and tremors, particularly in illnesses such as epilepsy. When epileptic seizures occur, prompt and effective treatment is critical to minimizing the chances of long-term harm to the body. Further, Fitbit is working on clinical validation and regulatory certification for its software for use in identifying health issues. Thus, medical and fitness accounts for a significant market share during the forecast period.
Increasing data security and privacy concerns is a significant challenge that affects market expansion. There are increasing concerns about data security and privacy for wearable device users, as a majority of smartwatches are embedded with motion sensors that render these devices vulnerable to hackers. The data can be easily decoded without the owner's knowledge using a wireless interceptor. As wearable devices store and access large volumes of data in real-time, including calls, messages, health-related information, photos, maps, and debit/credit card information, there is an inherent risk of a data breach.
Moreover, wearable devices or such watches are connected to the human body and provide invaluable insights into the user's health. One of the serious violations of human privacy may take place in athletics championships, wherein a hacker can easily track the workout routine and the strengths and weaknesses of the competing athletes. Moreover, there are many smartwatches with embedded near-field communication chips. Hence, increasing data security and privacy concerns is a major challenge for the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc.: The company offers smartwatches under the brand name Fitbit, such as Fitbit Versa 4, Fitbit Sense 2, Fitbit Versa 3, Fitbit Charge, and others.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The android wear segment is estimated to witness significant growth during the forecast period. Android Wear OS is an Android OS of Google LLC (Google), a subsidiary of Alphabet Inc., that is specifically designed for smartwatches. The Android OS enables end-users to download applications from the Google Play Store. Android Wear OS is a software platform that allows programs to run on such watches.
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The android wear segment was the largest segment and was valued at USD 8.37 billion in 2018. Android Wear OS supports to connect with smartphones running on Android 6.0+ and iOS 13.0+ OS. Besides, as the Android platform is an open-source platform for software developers, it is easy for them to develop applications for such watches. UV Index Now, Foursquare, Wear Casts, App in the Air, and Wear Reader are among the applications developed on the Android platform and available only in Wear OS-based smartwatches. These applications enhance the functionality of smartwatches and the user experience. Thus, the Android wear segment is expected to drive the development of the market during the forecast period.
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North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is a lucrative market for smartwatch manufacturers, driven by early technology adoption and leading players like Apple Inc., Alphabet Inc., and Garmin Ltd. Factors such as rising disposable income, the emergence of LTE-enabled smartwatches, and a focus on health features fuel demand. The US, particularly tech-savvy consumers, serves as a preferred launch market for new products. Crowdfunding platforms like Kickstarter and Indiegogo support startups in developing innovative wearables. The region's growing ecosystem of connected devices and high penetration among millennials further boosts market growth. Investment in telecommunication infrastructure, including 5G rollout, amplifies smartwatch sales, with major players like Apple, Samsung, Alphabet, Garmin, and Fossil dominating the market.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The Smartwatch Market is experiencing rapid growth due to various factors such as increasing Health consciousness, urbanization, and the launch of advanced products like the Apple Watch Series 5 and Boat Xtend Sport smartwatch. These devices offer a range of features including Blood oxygen saturation, Electrocardiogram (ECG) sensor, and Fall detection, making them popular among the Fitness industry and Health monitoring enthusiasts. Key players like Qualcomm, Montblanc, and Garmin International Inc. are driving innovation with products like the Snapdragon Wear 3100 and Forerunner 945 LTE, while addressing concerns like Data privacy and Supply chain disruptions. As the market expands, opportunities for growth lie in catering to the needs of the Millennial population and older individuals seeking Real-time health status monitoring for conditions like Sleep apnea and Diabetes. However, challenges such as the High cost of the device remain, requiring manufacturers to focus on offering competitive Price bands while enhancing features like UVB and UVA exposure monitoring and Skin sensor technology.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.94% |
Market Growth 2024-2028 |
USD 38.81 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.92 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 41% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Apple Inc., CASIO Computer Co. Ltd., Citizen Watch Co. Ltd., Fossil Group Inc., Garmin Ltd., HK SMARTMV Ltd., Huawei Technologies Co. Ltd., Imagine Marketing Pvt. Ltd., LG Electronics Inc., LVMH Moet Hennessy Louis Vuitton SE, Polar Electro Oy, Samsung Electronics Co. Ltd., Savex Technologies, SUUNTO, Tapestry Inc., Tata Sons Pvt. Ltd., Timex Group, Xiaomi Communications Co. Ltd., and Zepp Health Corp. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by OS
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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