Smartwatch Market by Type, Operating System, and Geography - Forecast and Analysis 2021-2025

The smartwatch market share is estimated to increase by USD 27.96 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 18.79%.

This smartwatch market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. The smartwatch market report offers information on several market vendors, including Alphabet Inc., Apple Inc., Fossil Group Inc., Garmin Ltd., Lenovo Group Ltd., LG Corp., Mobvoi Information Technology Co. Ltd., Nexxbase Marketing Pvt. Ltd., OnePlus Technology Co. Ltd., and Samsung Electronics Co. Ltd. among others.

This report further entails smartwatch market segmentations, including:

• Type - Integrated and standalone
• Operating system - WatchOS, tizen, wear OS, and others
• Geography - North America, APAC, Europe, South America, and MEA

What will the Smartwatch Market Size be During the Forecast Period?

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Smartwatch Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The technological advances in the semiconductor industry is notably driving the smartwatch market growth, although factors such as the increasing data security and privacy concerns may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the smartwatch industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Smartwatch Market Driver

• One of the key factors driving growth in the smartwatch market is the technological advances in the semiconductor industry.
• The major buying criteria for a smartwatch are sleek, a small design, and high operational efficiency.
• Technological advances in electronic components, such as chip system on a chip (SoC) technology and microelectromechanical systems (MEMS), are opening new opportunities for smartwatch manufacturers to develop small, compact, and less power-consuming smartwatches.
• Advances in SoC technology have helped vendors to reduce the printed circuit board space and integrate a significant number of electronic components in smartwatches.
• The development of MEMS technology has helped in the development of microsensors and microactuators, which helps in the miniaturization of devices and the development of wearable electronic devices, including smartwatches, that can support new features, such as voice recognition, haptics, and gesture recognition. Hence, this factor will drive the smartwatch market growth during the forecast period.

Key Smartwatch Market Trend

• The increasing number of patent filings by smartwatch manufacturers is a smartwatch market trend that is expected to have a positive impact in the coming years.
• A patent is a license that confers the right or title for a fixed period. Therefore, granting the patent right prevents any other person or company from making, using, or selling an invention.
• Several vendors are focusing on obtaining patents related to displays, cameras, sensors, and other related technologies. This is being done to include a greater number of electronic devices on a smaller footprint and integrate advanced technologies in next-generation smartwatches.
• In the highly competitive global smartwatch market, patent rights enable vendors to gain a competitive edge over competitors.
• For instance, in June 2019, Apple granted a patent to integrate an optical camera sensor in a watch band. The company is adding a separate watch band to smartwatches. The watchband is designed to capture images and videos in a 3600 view. Such instances will boost the smartwatch market growth during the forecast period.

Key Smartwatch Market Challenge

• The increasing data security and privacy concerns will be a major challenge for the smartwatch market during the forecast period.
• The data from smartwatches can be easily decoded using a wireless interceptor without the owner’s knowledge.
• As smartwatches store and access large volumes of data in real-time, including calls, messages, health-related information, and others, there is an inherent risk of a data breach.
• The integration of motion sensors is making smartwatches more vulnerable to hackers. With new technology integration, the risk of cybersecurity increases, as smartwatches often connect to wireless networks. This will have a negative impact on the smartwatch market growth during the forecast period.

This smartwatch market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global smartwatch market as a part of the global consumer electronics market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the smartwatch market during the forecast period.

Who are the Major Smartwatch Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

• Alphabet Inc.
• Apple Inc.
• Fossil Group Inc.
• Garmin Ltd.
• Lenovo Group Ltd.
• LG Corp.
• Mobvoi Information Technology Co. Ltd.
• Nexxbase Marketing Pvt. Ltd.
• OnePlus Technology Co. Ltd.
• Samsung Electronics Co. Ltd.

This statistical study of the smartwatch market encompasses successful business strategies deployed by the key vendors. The smartwatch market is fragmented and the vendors are deploying growth strategies such as focusing on acquiring smaller brands to compete in the market.

Product Insights and News

• Apple Inc. - The company offers smartwatches such as iWatch Series 7, iWatch Series 3 and many more.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The smartwatch market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Smartwatch Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the smartwatch market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the consumer electronics market includes the following core components:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Aftersales service
• Support activities
• Innovation

The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

Which are the Key Regions for Smartwatch Market?

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56% of the market’s growth will originate from North America during the forecast period. US and Canada are the key markets for smartwatches in North America. Market growth in this region will be faster than the growth of the market in the South American and MEA regions.

The increase in disposable income, the emergence of built-in LTE smartwatches, and the rise in health and fitness-focused features in smartwatches will facilitate the smartwatch market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In 2020, the rapid spread of COVID-19 impacted the growth of major industries, such as manufacturing and transportation, and that of major players operating in the regional market. Several countries in the region were affected by the COVID-19 pandemic. However, in the first half of 2021, manufacturing and supply chain activities resumed, owing to the vaccination drives being ramped up all over the region. Furthermore, smartwatches with blood oxygen level sensors became a trend during the COVID crisis, which helped in market growth. Thus, the demand for smartwatches in the region is expected to grow during the forecast period.

What are the Revenue-generating Type Segments in the Smartwatch Market?

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The smartwatch market share growth by the integrated segment will be significant during the forecast period. The integrated segment accounted for a majority of the market share in 2019 and is expected to hold a major market share during the forecast period. The demand for integrated smartwatches is likely to grow owing to the increasing penetration of low-cost smartwatches in emerging countries and the entry of several traditional watch manufacturers in the market. Thus, an increase in integrated smartwatches will drive the smartwatch market growth during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the smartwatch market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Smartwatch Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive smartwatch market growth during the next five years
• Precise estimation of the smartwatch market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the smartwatch industry across North America, APAC, Europe, South America, and MEA
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of smartwatch market vendors

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