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The Wearable Technology Market size was valued at USD 50.20 billion in 2020 and is expected to reach USD 126.02 billion in 2027. The wearable device market is classified into Product, Application, and Geography. The Product segment is expected to hold the largest share in the wearable technology industry during the forecast period.
The global wearable technology market share is estimated to grow by USD 62.81 billion between 2023 to 2027 accelerating at a CAGR of 14.8%.
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The wearable technology market is divided into three segments that are Product, Application, and Geography. The Product segment is classified into wrist-wear, eyewear and headwear, footwear, neckwear, and others. The Application segment includes consumer electronics, healthcare, enterprise, and industrial, entertainment, and others. The Geography segment includes key regions such as North America, APAC, Europe, South America, and the Middle East and Africa.
The emergence of the hybrid smartwatch market is one of the major wearable technology market trends shaping the market growth. An encouraging trend within the global wearable technology in healthcare is the rise of hybrid smartwatches. These innovative timepieces blend the classic aesthetics of traditional mechanical watches with the functionality of connected smartwatches. Attracting individuals who value the timeless appearance of mechanical watches while desiring features like health and fitness monitoring, sleep tracking, and smartphone notifications management.
Unlike touchscreen smartwatches, these hybrids rely on smartphone integration, controlled via dedicated apps. This trend has spurred numerous vendors to expand their offerings, exemplified by Garmin's vivomove HR, launched in India in March 2018, and Fossil Group's Hybrid HR smartwatch, introduced in India in January 2020. These hybrid smartwatches are poised to bolster the adoption of wearable technology, propelling market growth in the foreseeable future.
The development of miniaturized electronic components is a key driver boosting the growth of the wearable device market. Sleek and small design and high operational efficiency are the prominent criteria for purchasing wearable devices among consumers. Developments in Microelectromechanical systems (SoC) technology and microelectromechanical systems (MEMS) are opening new opportunities for wearable device manufacturers to develop small and aesthetically appealing consumer-oriented wearable devices, which will help the growth of the wearable technology market during the forecast period.
The development of MEMS technology has helped vendors integrate more features into the device. It has led to the development of microsensors and microactuators, which aids in the miniaturization of devices and the development of wearable devices that can support new features, such as voice recognition, biometric applications, and gesture recognition. Thus, such factors will drive the growth of the market in focus during the forecast period.
The rising penetration of counterfeit products is a key challenge hindering the growth of the market. The surge in counterfeit wearable devices is a significant impediment to the global wearable technology market. These imitation products, mimicking major brands like Apple, Samsung, and Xiaomi, flood the market, primarily originating in the APAC region due to low-cost labor and established counterfeit markets.
Smartwatches and smart bands are particularly susceptible, appealing to local consumers for their lower prices. These counterfeit items, available through various channels, including retail stores, online platforms, and social media, reduce the sales of genuine devices, posing a threat to privacy and security as they lack the same standards. This hampers the sales, credibility, and brand value of authentic products, limiting the wearable technology market's growth.
The wrist-wear segment is estimated to witness significant growth during the forecast period. Wrist-wear devices include smartwatches and smart bands. A smartwatch is a digital device that provides many features, such as making calls and sending messages, health monitoring by tracking steps taken, calories burned, and heart rate, and tracking sleep patterns. It provides customers with quick access to a variety of applications on their smartphones.
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The wrist-wear segment was the largest segment and was valued at USD 10.58 billion in 2017. Wearable medical devices such as smart bands can be used to monitor a user's fitness, heart rate, sleep statistics, and calorie control in real-time, as well as provide health information. These bands contain miniature electronic components, such as microchips and sensors, that collect information, record activity, and transmit and transform that information in real time. Consumer awareness of health and fitness is increasing demand for smart wearables. Thus, such applications of smart bands and smartwatches will fuel the growth of the segment and 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 was the largest market for wearable technology globally in terms of revenue in 2022. The increasing adoption of new technologies by consumers is driving the growth of the market in the region. The presence of some largest crowdfunding platforms, such as Kickstarter and Indiegogo, which help start-ups raise funds for the development of innovative wearable products in the region, will contribute to the growth of the regional market during the forecast period. The region is the hub of several international and domestic vendors that offer wearable devices. Some major vendors of wearable electronics that operate in the North American market are Apple, Fitbit, Microsoft, Google, and Vuzix.
The increasing adoption of the contactless payment method is expected to drive the growth of the wearable electronics technology market in North America. The manufacturers of POS terminals and EMV cards are integrating NFC technology for the contactless payment mode to make sure that customers have enough options for contactless payment. Thus, the wearable technology market in North America is expected to register a high growth rate during the forecast period.
In 2020, the North American market faced substantial challenges due to the COVID-19 pandemic. The US, the hardest-hit country, implemented lockdowns, causing people to stay at home and reducing the demand for non-essential products like wearables. This led to disruptions in manufacturing and supply chains, resulting in a minor decline in the wearable technology market. Many vendors shifted to online sales to adapt. However, in 2021, as COVID-19 cases decreased and vaccination efforts expanded, the market rebounded. The pandemic also raised health and fitness awareness, further boosting the adoption of wearable products, which is expected to drive market growth in the forecast period.
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.
Apple- The company offers wearable medical devices such as the Apple Watch which includes features Heart rate notifications, Irregular rhythm notifications, ECG app, mobility, and cardio fitness.
Technavio has detailed analyses of the competitive landscape of the market and information about 15 market vendors, 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 wearable technology market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Wearable Technology Market Scope |
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Report Coverage |
Details |
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Page number |
184 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 14.8% |
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Market growth 2023-2027 |
USD 62.81 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
13.27 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 41% |
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Key countries |
US, Canada, China, Japan, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., Apple Inc., ASUSTeK Computer Inc., BAE Systems Plc, CINOPTICS, Citizen Watch Co. Ltd., Elbit Systems Ltd., Fossil Group Inc., Garmin Ltd., Huawei Technologies Co. Ltd., Kopin Corp., Lenovo Group Ltd., LG Electronics Inc., Magic Leap Inc., Polar Electro Oy, Samsung Electronics Co. Ltd., Sony Group Corp., Tex Ray Industrial Co. Ltd., Vuzix Corp., and Xiaomi Communications Co. Ltd. |
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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, Market condition analysis for forecast period |
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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 Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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