Nordic Smartwatch Market - Forecasts from 2022 to 2027

The Nordic smartwatch market is projected to grow at a CAGR of 18.09% during the forecast period to reach US$1,667.357 million by 2027, from US$520.639 million in 2020.

Wearable fitness technology such as smartwatches is becoming increasingly popular. Users connect them to various apps to track various types of data. A smartwatch may often be used as a tracking device, lowering the barrier to entry and providing a positive user experience, which is why smartwatches are likely to become a vital component of the industry in the near future.

The Nordic smartwatch market has a rapid rise in internet connectivity, a surging rate of fitness penetration, and an increase in demand for wireless gadgets. According to data collected annually by the National Statistical Institutes, the percentage of people aged 15 to 74 who use the internet climbed from 95 percent in 2019 to 97 percent in 2020 in Denmark and from 93 percent in 2019 to 95 percent in 2020 in Finland. The integration of AI has aided the advancement and rapid development of healthcare. Smartwatches with AI enable smart diagnostics and clinicians to keep track of their patients' health. Monitoring and measuring physical activities, sensing the surroundings, real-time data collecting, and communication are some of the primary applications that are expected to meet the major needs of customers in smart wireless fitness devices.

Increasing digitalization, surging millennial spending, increased activity levels, and growing government initiatives are expected to propel the market. The Nordics have a higher GDP per capita than the rest of the world. Therefore, the ordinary individual has more money to spend on technology. National governments in Scandinavia have implemented various innovation policies, ranging from R&D tax credits to subsidies, to help IT businesses expand. The Danish government has a policy of allocating €134 million to innovation projects until 2025 as part of its Digital Growth Strategy. In Finland, the Helsinki and Uusimaa Hospital District launched a project to connect local hospitals in southern Finland with the university to conduct joint research. This has aided in developing a more robust conversation on health technology. The increasing prevalence of dark corners on the internet has prompted Finland to raise child cybersecurity awareness in the Nordic region, with Spacetalk securing national distribution of their smartwatches via telecommunications giant Elisa Corporation in all of Elisa's retail stores and online channels in Finland and other Nordic countries.

High costs and skilled labor are expected to stifle the market's growth during the projected period. Due to the integration of numerous components such as sensors, screens, and others into a small compact device, smartwatches have complex circuit layouts. The device contains several minute semiconductor devices with a core diameter of 10 micrometers. Manufacturers struggle to combine several parts into one device since control ICs are only a few hundred nanometers thick. The initial expenditure on raw materials, as well as the high level of talent required for design and development needs, increases the cost of the smartwatch.

Key Developments

Shenzhen DO Intelligent Technology Co., a China-based smart wearables company, has chosen Nordic's Low Energy Bluetooth advanced multiprotocol System-on-Chip to provide the core processing power and wireless connectivity for its ID206 smartwatch with Alexa Built-in in November 2021.

By product type, the Nordic smartwatch market is segmented into standalone, extension, and classic. The stand-alone segment is expected to have a significant revenue share, which is likely to continue throughout the projection period due to the advanced technology at affordable prices.

By operating system, the Nordic smartwatch market is segmented into watch OS, wear OS, and others. WearOS is Google's wearable platform. WearOS is a slimmed-down version of Android that works best with Android phones, whereas watchOS is the Apple Watch's operating system created by Apple Inc.

By end-user industry, the Nordic smartwatch market is segmented into personal assistance, medical and healthcare, sports and fitness, and others. A significant factor projected to fuel the growth of the Nordics smartwatch market is increasing demand from various end-user sectors such as healthcare and fitness. The healthcare and medical sector account for most growth during the forecast period as health monitoring has become highly significant. The healthcare systems in Sweden, Denmark, and Norway are among the best globally.

By country, the Nordic smartwatch market is segmented into five regions Norway, Sweden, Denmark, Finland, and others. Due to factors such as an increase in the number of health clubs, increased awareness of health and fitness among millennials, and fitness activities, the smartwatch market is expected to grow in Norway, Sweden, and Denmark.

COVID-19 Insights

Due to temporary shutdowns of multiple industries and lockdowns imposed throughout several regions, the COVID-19 outbreak had an impact on various businesses' operations and supply chains. However, smartwatch technology has seen a boom in demand. Internet usage and wearables in the healthcare sector have increased massively as a result of the COVID-19 pandemic. Smartwatch manufacturers are putting more effort into product innovation to track coronavirus infection rates using smartwatches. The growing popularity of smartwatches is boosting the market growth.

Key Market Segments

• By Product Type

Standalone

Extension

Classic

• By Operating System

Watch OS

Wear OS

Others

• By End-User Industry

Personal Assistance

Medical and Healthcare

Sports and Fitness

Others

• By Country

Norway

Sweden

Denmark

Finland

Others