Global Wearable Market (by Product, Application, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)

Hand-free electronic items or devices that can be implanted in the user's body, worn as accessories, or incorporated in clothes are examples of wearable devices. Wearable devices are microprocessor-powered products with real-time applications that can transmit And receive data over the internet. Wearable technology aspires to have an influence on a wide range of industries, including health and medical, wellness, ageing, disabilities, education, transportation, business, finance, gaming, and music, to name a few. The objective is to become an advantageous component of people's daily lives by connecting with them.

People choose wearable devices to track their health and fitness data because obesity has become a serious concern in many areas. Large companies entering the market, portable and easy usage, greater healthcare awareness, and technical improvements are all factors impacting the market. The global wearable market is expected to be worth US$89.48 billion in 2023, progressing at a CAGR of 12.92%, during the forecasted period.

Segment Covered

By Product: In terms of product, the report identifies six segments of the global wearable market: Smart Watches, Head-mounted Displays, Ear-worn Devices, Sport Watches, Wristbands and Smart Clothing. Smart watches segment dominated the market with highest share. During the COVID-19 phase, the demand for smart watches witnessed an increase because such wearables have been used as an an alternative to medical equipment to monitor essential health parameters including oxygen levels and heart rate. In addition to this, smart watch sellers took their business to online platforms to have a maximum customer exposure. Through various online modes, like social media marketing, companies promoted their products in an attractive way to appeal customers, which helped in the sales growth of smart watches and thereby propelled its market globally.

By Application: The report further offers the categorization of the market based on the application of wearables: Consumer Electronics, Healthcare, Enterprise & Industrial Application and Others. Among the application, consumer electronics segment is expected to grow at a highest CAGR during the forecasted period. Fitness and sports, garments and fashion, multifunction, infotainment and multimedia, and other applications are all possible with consumer electronics. Given the growing consumer demand for wearable consumer electronics, industry players are concentrating on developing devices that can keep end-users track their work hours. Furthermore, the rise in connected devices and growing machine-to-machine communication are expected to support the growth of wearable consumer electronics, thereby supporting market growth.

Geographic Coverage

According to this report, the global wearable market is divided into four regions: North America, Asia Pacific, Europe, and ROW. The countries covered in North America region are the US, Canada, and Mexico, while Europe includes UK, Germany, France, Italy and Rest of Europe. Moreover, China, Japan, India, South Korea, and Rest of Asia Pacific are included in the Asia Pacific region. North America accounted for the maximum share of the global market. Rapid urbanization, population growth, and rising consumer disposable income as well as the rapid adoption and popularity of enhanced devices have all contributed to the region's phenomenal growth over the years. Furthermore, the region has a strong presence among wearable device vendors such as Apple, Alphabet, and Garmin, among others, which contributes to the market's growth. The APAC region is well-known for being a major manufacturing hub. India and China have large manufacturing facilities for a variety of industrial segments (including consumer electronics, car manufacturing, and heavy materials, among others). Increased per capita income in developing countries, high population density in many countries in the region, and the affordability of wearable devices for customers at low prices by manufacturers in India and China, as well as countries such as Japan, Singapore, China, and Australia, which are proving to be digitally mature markets, are the primary reasons for APAC to grow at the fastest CAGR.

Top Impacting Factors

Growth Drivers

• Escalating Spending on New Technologies
• Growing Internet Users
• Rise in Youth Population
• Growth of Augmented Reality/Virtual Reality (AR/VR) Application

Challenges

• Limited Battery Life of Devices
• Data Privacy Concerns in Wearable Technology

Trends

• Upsurge in Connected Wearable Devices
• Increasing Growth Prospects of Next-Generation Displays in Wearable Devices
• Need for the Integration of all Computing Requirements in One Compact Device
• Digital Payments Through Wearable Devices

Driver: Escalating Spending on New Technologies

Technology is advancing at a rapid pace all across the world. With much focus on new technologies, companies are constantly innovating and developing new products in the market in order to grab customers’ attention. Wearable technology is one of the potential segments of the ICT sector, due to its growing popularity among people. Companies are embedding new technological features in wearable devices in order to provide better user experience to customers. Ongoing developments in the wearable technology is further enlarging its market growth opportunity globally.

Challenge: Data Privacy Concerns in Wearable Technology

Defects in technology can sometimes cause problems such as lack of control over data flow links in wearable devices. As wearable devices can collect user data regardless of time and place, uploading data to the cloud can easily make the wearable device’s system vulnerable to attacks and data leakage. Security and privacy concerns of wearable devices are mostly about the user data being hacked and manipulated, insecure communication, physical theft of data, use of wearable tech for spying, lack of encryption and other vulnerabilities. Such data concerns are real and could limit the use of wearable technology among consumers, which pose a serious threat to the growth of the wearable market globally.

Trend: Upsurge in Connected Wearable Devices

Connected wearable are the wearable devices that are connected to a network, either cellular data, Wi-Fi or Bluetooth. wearable are bringing about a new digitized and connected economy, where people and organizations are collaborating in different and deeper ways. With connectivity, wearable technology is easing the entire process of communication and data sharing. In healthcare, patient-worn devices (like smart watches, vests and e-textiles) are increasingly used for monitoring and providing round-the-clock care, to collect biometric data to help with diagnoses, and even administer medicine to alleviate pain. Therefore, connectivity is playing a pivotal factors in the adoption of wearable devices and thereby contributing their market growth globally.

The COVID-19 Analysis

Given the unprecedented large-scale impacts of the COVID-19 pandemic, digital technology has gained momentum as social interaction and health tracking tools in the time of great turmoil. Just like other digital gadgets, wearable technology has gained robust popularity among people, during the time of COVID-19 lockdowns and quarantine, supporting the market growth. During the COVID-19 quarantine, wearable played a role in keeping people healthy and in touch with their loved ones. The elevated stress level among people, due to the COVID-19 related circumstances, has led people opt for indoor yoga activities. To manage the fitness level and healthy living, during the lockdown period, wearable devices like smart watch and fitness bands have helped people track their progress, which eventually resulted in the market growth of wearable globally. New digital technologies like SpO2 monitoring supported the growth of the market and further technological advancements like use of AR and VR as well as multiple application adoption of wearable are expected to support the market growth during the post COVID period.

Analysis of Key Players

The global wearable market is concentrated with top five players, accounting for more than 60% of the market. Market players have implemented sustainable growth techniques in the market. The key players in the global wearable market are Alphabet Inc. (Google), Apple Inc., Microsoft Corporation, Samsung Electronics Co. Ltd., Sony Corporation, Huawei Technologies Co. Ltd., Xiaomi Corporation, Casio Computer Co. Ltd., Fossil Group Inc., LG Electronics, Garmin Ltd., and Imagine Marketing (boat).