The Wearable Technology Market was valued at USD 27.91 billion in 2019 and is expected to reach USD 74.03 billion by 2025, at a CAGR of 17.65% over the forecast period 2020 - 2025. Wearables are electronic technology incorporated into items that can be worn on a body. These devices are used for tracking information on a real-time basis. Wearables imply wristbands that are launched by companies like Fitbit, Jawbone, Apple, and act as activity trackers, which has gained significant traction, owing to the boom in the fitness trend across consumers. According to Fitbit, in 2018, the company sold around 14 million units of its smart fitness devices.
- Advancements in recent research causing increased innovation were instrumental in increasing the demand for the wearable market, which has led to new product categories like smart clothing, ear-wearables, etc., that incorporate high-end technology and design in daily living. Lately, the focus has been on providing an aesthetic design to devices to attract the customers.
- The smartwatch category is also experiencing a boom owing to additional features, like the brand that suits everyday lifestyle. Strong brands, such as Apple, in 2019, launched its smartwatch, the Apple Watch Series 5. This smartwatch is powered by the latest version of the company's watch operating system, watchOS 6 and it features major upgrades (such as new safety features) over Apple Watch Series 4. With Google's WearOS, many other premium watchmakers, such as TAG, Armani, etc., have entered the segment.
- Although the wearable technology is still in its early stages, the niche segments are expected to have a longer-term perspective. Changing consumer lifestyles and shift toward fitness, along with the need for advanced technologies for healthcare and security applications, are expected to drive the market over the forecast period.
Scope of the Report
Wearable technology is an emerging trend that integrates electronics to the daily activities and fits into the changing lifestyles and can be worn on any part of the body. The ability to connect to the Internet, and enabling data exchange between a network and a device, is the driving factor that leads to the trend of wearable technology.
Key Market Trends
Smartwatches are Expected to Hold a Significant Share
- Owing to the increasing penetration rates of urbanization, the demand for aesthetically appealing advanced featured products with the ability to better serve consumers' daily requirements, such as time schedules, have driven the market for smartwatches, globally. Moreover, the huge millennial population has been adopting smartwatches, owing to increased spending for their regular work hours tracking as well as luxury standards. For instance, European millennials are projected to witness an average expenditure rise by 18%, to just above USD 53,000, by 2022.
- Additionally, several efforts are being taken by the players in the market to gain a competitive edge in this fast-growing market mainly catering to the demand from the millennial generation population. In 2018, Fossil Group launched seven next-generation smartwatches, amplifying the technological features on the wrist, while maintaining the aesthetically fashioned designs for Indian millennials.
North America is Expected to Hold a Major Share
- North America is known as the hub for all significant technological improvements in the world. With the advent of smart gadgets, the demand is growing for more active and sophisticated wearable technologies. The growth in disposable income and the rapid adoption and popularity of enhanced gadgets are some of the primary drivers for the market in this geographical region. Moreover, the region has a strong foothold of wearable vendors, such as Apple, Fitbit, and Garmin, among others, adding to the growth of the market.
- The growing investments by numerous sports associations to eliminate the possibility of any preventable injuries of highly paid professional athletes is anticipated to fuel the growth of the wearables in the region. For instance, the US-based basketball team Golden State Warriors is working with smart clothing company Athos to use these products for injury prevention and optimizing the player performance. This investment represents only the fraction of involvement of the United States athletics sector in the smart clothing industry landscape.
- Apart from the United States, the demand for wearables is also increasing in Canada. The country is expected to provide sufficient expenditure and funding for its military programs (including clothing). In 2018, Wearable Technology Company, North received a multi-million dollar investment from the Government of the country. The company will use the money to expand its existing wearable technology facility and implement advanced testing, assembly, and production systems.
The wearable technology market is highly competitive and consists of several major players. The wearable tech industry is also attracting a lot of startups, which in turn, is intensifying the competition in the market. Thus, to maintain a competitive edge in this market, companies are continuously investing in introducing new products, expanding their operations, or entering into strategic mergers and acquisitions.
- March 2019 - Apple updated watchOS 5.2 software in Apple Watch Series 4, through which direct-to-consumer products can enable customers to take an electrocardiogram right from their wrist by their ECG app.
- March 2018 - Garmin Ltd announced tactix Charlie, a GPS wearable that combines specialized tactical functionality with mapping-enhanced navigation and advanced fitness training features. This watch introduces preloaded full-color TOPO mapping, wrist-based heart rate, advanced performance metrics, and more than 26 built-in activities for any type of adventure.
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