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The wearable technology market size is estimated to grow at a CAGR of 17.28% between 2023 and 2028. The growth of the wearable technology market hinges on various factors, including the popularity of wearable devices for payment, the increasing digitization of the global economy, and advancements in miniaturized electronic components. These devices, serving as convenient payment methods, are becoming increasingly sought-after by consumers. Moreover, as the global economy continues its digital transformation, the demand for wearable technology is expected to surge. Additionally, ongoing developments in miniaturization techniques for electronic components are enabling the creation of smaller, more efficient wearable devices, further fueling market expansion.
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The market is driven by the diverse needs of swimmers, cyclists, runners, and gym-goers seeking enhanced performance and health monitoring solutions. Trends include the rise of smart clothing and IoT-based apparel, integrating features like MEMS sensors and GPS for precise tracking. However, challenges such as counterfeit products and consumerism pose threats to market integrity. Additionally, ensuring health self-efficacy and addressing privacy concerns regarding clinical data remain critical challenges for manufacturers and developers in this dynamic and evolving industry. Our researchers analyzed the data with 2022 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.
The growing digitization of the global economy is the key driver for the growth of the market. Emerging economies in regions such as APAC and MEA are seeing a significant increase in digitalization, due to increasing internet penetration rates, and a growing mobile subscriber base. The number of IoT devices is increasing and a number of smart city projects are underway. With the increasing integration of advanced gadgets, such as contactless payments, AI, and virtual reality, into electronic devices, the use of electronic devices is expected to increase.
Furthermore, the growth of the mobile application ecosystem has increased the preference for portable and electronic devices. As the market is witnessing an increase in the number of wearable-compatible applications, the adoption of technology devices is expected to increase, thus driving the growth of the wearables market during the forecast period.
The increasing number of strategic partnerships and M&A activities is the primary trend in the market. The market is still in its infancy. Market players form strategic partnerships with market participants and acquire other companies that provide technology. These partnerships and M&A enable suppliers to develop innovative products by leveraging the technology and technical expertise of market participants.
Moreover, such activities lead to the development of an ecosystem, which will increase the adoption of wearable technology. For instance, in January 2021, Alphabet Inc. (Google) acquired certain smartwatch technology intellectual property from Fossil Group Inc. for USD 40 million. The growing number of partnerships and M&A activities among market participants is expected to fuel the market growth and trends during the forecast period.
Unattractive designs of devices are the challenge that affects the growth of the market. Electronics reflect the fashion style of the user. Several electronics manufacturers focus on technology rather than device design. The trend of integrating multiple electronic devices into portable electronic devices to add more functions leads to design limitations. Factors such as weight, thickness, battery life, performance, corrective lenses, eye position, and connectivity are all considered when designing smart glasses.
Furthermore, Bluetooth-enabled smart rings are bulkier than NFC-enabled smart rings because they contain more microelectronic modules and need to be paired with a smartphone. Due to the use of a Bluetooth chipset that requires power, these rings must contain batteries, making them even less compact. The unattractive design of some devices, such as smart glasses, could negatively affect the development of technology which will impede 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.
Xiaomi Communications Co. Ltd.: The company offers products such as Redmi watch 3 active, Xiaomi buds 3, and Xiaomi smart band 7 NFC.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 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.
In the dynamic landscape of wearable technology, innovations cater to diverse user needs and preferences. athletes, including swimmers, cyclists, runners, and gym-goers, benefit from advanced solutions like smart clothing and fitness-tracking wearables. The integration of IoT-based apparel and health monitoring solutions revolutionizes personal wellness management. However, challenges arise with the proliferation of counterfeit products and concerns regarding consumerism. Cutting-edge features such as MEMS sensors, GPS, and IMU enhance functionality, empowering users to monitor performance and health metrics. From electronic displays to head-mounted displays, wearable tech seamlessly integrates with mobile phones to provide real-time data and insights, bridging the gap between patients and clinical data.
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 11.60 billion in 2018. A smart band is a wearable device that 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 42% 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. Increasing consumer adoption of new technologies is driving market growth in the region. The presence of some of the biggest crowdfunding platforms, such as Kickstarter and Indiegogo, helps startups raise funds to develop innovative wearables in the region.
Furthermore, the region is home to several local and international players offering wearable devices. Apple, Fitbit, Microsoft, Google, and Vuzix are some of the major wearable electronics players operating in the North American market. The region benefits from the sale of products made available to US customers for the first time. End users, such as consumers and businesses, are always eager to try new technologies. Therefore, the market in North America is expected to experience a high growth rate during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
In the expansive realm of wearable technology, diverse innovations cater to a wide range of users, from adventure lovers to sports enthusiasts. Augmented Reality (AR) intersects with the multimedia industry, enhancing experiences through AR/VR headsets and smart hats. Companies like Spree Wearables offer cutting-edge fitness bands for health-conscious consumers. In the healthcare sector, IoT-enabled garments and telehealth solutions empower healthcare providers and patients alike, enabling real-time monitoring and intervention for chronic diseases like cardiovascular disease and obesity. From smart fabrics with small sensors to wristbands and ear-wearables, the market thrives on technological innovativeness, although concerns persist regarding data security and technological literacy.
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Market Scope |
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Report Coverage |
Details |
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Page number |
192 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 17.28% |
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Market growth 2024-2028 |
USD 87.3 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
14.39 |
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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 42% |
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Key countries |
US, China, Japan, Canada, 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 market forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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