Wearable technology or also referred to as wearables are smart electronic devices worn close to or on the surface of skin wherein they can detect, analyze, and transmit information regarding the body such as vital signals. Wearable devices such as activity trackers are a prime example of the Internet of Things wherein it enables the object to exchange data through the Internet with a manufacturer. The sleek design and multi-functionality are the factors that always attract a customer towards a product and wearable technology products offer these benefits, which are likely to boost the demand for wearable technology products. Apart from this, hand-worn terminals are now used in the industrial and military sectors in providing information regarding maps and routes.
The global wearable technology market is estimated to be valued at US$ 17,142.3 million in 2021 and is expected to exhibit a CAGR of 45.4 % over the forecast period (2021-2028).
In September 2020, Apple Inc., a U.S. based electronics company launched Apple Watch Series 6 and Apple Watch SE for significant developments in health and wellness features to iPhone, iPad, and Apple TV. Apple Watch Series 6 expanded the health capabilities of previous Apple Watch models with a new feature that measures the oxygen saturation of blood for a better understanding of fitness and wellness.
In September 2020, Samsung Electronics Co., Ltd., a South Korea based electronics company launched the first-ever titanium model of Galaxy Watch3, built with premium materials and a stunning signature rotating bezel. The watch features military-grade durability and water resistance.
Figure 1. Global Wearable Technology Market Value (US$ Mn), by Region, 2020
North America held dominant position in the global wearable technology market in 2020, accounting for 43.2% share in terms of volume, followed by Europe and APAC, respectively.
Market Dynamics- Driver
Compactness and portability of wearable devices is expected to drive growth of the global wearable technology market during the forecast period. Over the years, wearable devices have become more and more compact and portable. This is attributed to technological advancements in the sector of wearable technology products. Previously, computing devices were bulky however, the size of these devices kept decreasing gradually and now a new era of technology has arrived where the products with computing technology can be worn in a slim and sleek fashion. These technologically advanced devices such as sleep sensors, smart glasses, smartwatches, and military heads-up displays and so on are compact yet multi-functional.
Growing application of wearable technology products in various sectors is expected to propel the global wearable technology market growth over the forecast period. Wearable technology is being adopted in various sectors including healthcare, infotainment, wellness, medical, military, industry, etc. Wearable devices such as heads-up displays are expected to find applications in various sectors including construction, industrial sector, and military sector apart from the healthcare and fitness sector.
Product innovations can present lucrative growth opportunities. Enhanced product quality design will result in better acceptance of wearable technology products. In the present scenario, only a few players are present in this market that enjoys complete dominance. Products currently available such as Google glasses, Nike+ Fuelband, and so on, offer multi-functionality to the users but are priced high, and hence not affordable to middle-class consumers. This is a niche market and new entrants are likely to enhance product quality and lower the price.
New product launches can provide business opportunities. Key players in the market are focused on research and development activities, in order to enhance the product portfolio. For instance, in September 2011, Adidas Introduced Heart Rate Based Coaching For miCoach Mobile - Runners who are using the miCoach mobile app can now take advantage of the new heart rate based coaching system for mobile to reach their personal training goals. Moreover, in November 2011, Adidas launched adizero f50 Powered by miCoach - The Boot with a Brain - Adidas unveiled the intelligent football boot, the adizero f50 powered by miCoach. Known as the 'football boot with a brain', it is expected to bring smart technology to the field of play.
|Base Year:||2020||Market Size in 2021:||US$ 17,142.3 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||45.4%||2028 Value Projection:||US$ 235,312.4 Mn|
Adidas, Suunto, Abbott laboratories, Sony, Eurotech, Nike, Google, Inc., Garmin International Inc., Medtronic, Fitbit Inc., and Apple Inc
|Restraints & Challenges:||
At present, there are several products available in the market such as smart glasses, smartwatches, sleep sensors, smart clothing, activity monitors, wearable patches, drug delivery, continuous glucose monitors, hand-worn terminals, and more. Additional wearable technology products are likely to arrive in this market as major players continue with their research and innovations in this sector. However, new entrants are also likely to enter this market. For instance, Microsoft is developing its own augmented reality headset, which is expected to be a direct competitor to Google’s Glass headset.
In the fitness and wellness sector, smart sports glasses will attract the youth with its advanced features. Activity monitors and sleep sensors are also likely to witness high growth with increasing incidence of old age diseases and rising awareness about health and fitness both among young and old people. Rising aging population will highly contribute to the sale of wearable technology products in the fitness and wellness segment.
Figure 2. Global Wearable Technology Market Share, By XX, 2020
Key Takeaways of the Graph:
Market Dynamics- Restraints
High cost of wearable devices is expected to restrain growth global wearable technology market during the forecast period. Wearable devices are more expensive as compared to other electronic devices. Since the technology is in its nascent stage and there are fewer players in the market, the price of the product is significantly high. This high price is making the products unaffordable to middle-class consumers.
Slower acceptance of products by consumers is expected to hinder the global wearable technology market growth over the forecast period. Since this technology is new, consumer acceptance remains the biggest obstacle. Easy acceptance of technologically advanced products takes time when it comes to wearable technology products. For instance, products with wearable technology in a cyborg-like shape will be tough for a person to accept when they are not used to such products.
Key players operating in the global wearable technology market are Adidas, Suunto, Abbott laboratories, Sony, Eurotech, Nike, Google, Inc., Garmin International Inc., Medtronic, Fitbit Inc., and Apple Inc.
Wearable technology is quickly becoming a major force in today's world and industries. There are many reasons that wearable technology has developed over the years although the main reason for the recent development has been the development of electronics that are small, lightweight, and can be worn on the body without restricting movement. As with many technological advances, wearable technology has come from the traditional areas of medicine and military research and also from everyday consumer products such as handbags and watches Electronic devices can provide improved sensory feedback. Many people suffer from sensory processing disorders such as sensory integration disorder which means they have problems with textures, smells and other types of "bodily" sensations. Some people with this disorder have an extra sensory organ such as an ear or nose that allows them to fully experience physical things.
Growing smartphone users is expected to boost the global wearable technology market growth over the forecast period. According to the Pew Research Center, in 2019, around 81% of people in the U.S. had smartphones, increasing from 68% in 2015. According to the same source, tablet users in the U.S. increased from 34% in 2013 to 52% in 2019. This, in turn, has significantly increased the adoption of wearable devices including smartwatches.
Moreover, increasing growth prospects of next-generation displays in wearable displays are expected to accelerate growth of the global wearable technology market in the near future.
Key features of the study:
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