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The global smartwatch market size was USD 18.62 billion in 2020. The market is projected to grow from USD 22.02 billion in 2021 to USD 58.21 billion by 2028, with a CAGR of 14.9% in the 2021-2028 period.The global impact of COVID-19 has been unprecedented and staggering, with the industry witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a stellar growth of 21.23% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden fall in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
The growing consumers' inclination towards technological devices owing to incredible attributes to help simplify their life has a significant contribution towards spiking the product usage. The device comes with multiple positive aspects, including navigation, fitness tracking, notification checking, and others, which thus help users of various needs from athletes, tech enthusiasts to regular users. Nowadays, key brands are offering innovative wristwatches to influence people buy such items. This key brands’ efforts will offer newer market growth opportunities. An independent news publisher in Pakistan ‘Pro Pakistani. Pk’, in September 2020, mentioned that Xiaomi was working towards the launch of its futuristic curved screen smartwatch.
COVID-19 Propelling Consumers to be Health Conscious to Bolster the Growth
The impact of the COVID-19 pandemic has prompted a large number of people around the world to be more cautious and put more emphasis on the maintenance of their well-being. This is thus playing a significant role in surging the utilization of the product, especially for monitoring the body’s health is assisting in escalating the demand for the product during the outbreak. For instance, the published statistical data by the National Interest.Org in August 2020, declared that the worldwide wristwatches market experienced an increase of 20% in the first half of 2020.
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Key Brands Shifting their Focus Towards Kids to Spike the Development
The key companies of the industry are increasingly shifting their attention towards kids by increasing the manufacturing of products that are designed to specifically target them is expected to drive the market growth. This is due to a large number of parents increasingly aware of how it could help enhance the lives of their children by allowing them to be more physically active. The released data by the Gadget. NDTV, in June 2021, stated that the launch of GOQii smart vital junior wristwatch, which is specifically designed for kids, and the product, even comes with 18 activity modes.
Growing Popolarity of Fitness among Youth and Urban Population to Reinforce Market Progression
The growing popularity of fitness in youth and increasingly adoption of fitness tracking devices among them is expected to help surge the consumption of such products. International Health, Racquet and Sportsclub Association, in January 2020, declared that 33% of the Millennial Generation and 14 % of Generation Z in the U.S. were evaluated to be health club members in 2018. Likewise, the escalating rise of the urban population around the world is likely to propel the need for the product as they are more exposed to and aware of the multiple types of smart devices. United Nations.Org in May 2018, stated that the worldwide urban population grew speedily from 751 million in 1950 to 4.2 billion as of 2018.
The High Spending Power of Developed Economies to Fuel the Demand
The high consumer expenditure of the developed economies has played an essential role in spiking the product's sales owing to its ability to help boost the spending on smart devices, including smart wearables. The published data by the Trading Economics, states the consumer spending of the United Arab Emirates was USD 154,959.54 million in 2019. Additionally, growing production of the kids smartwatches by the companies will support the market growth.
Moreover, countries of the European Union possessing a high per capita income are also acting as a propelling factor that is driving the market development. It is because high per capita income could encourage more consumers to intensify their shopping for smart wearables. As per the data published by World Bank Group, an International Financial Institution, in 2020, GDP per capita of various European countries such as Italy, France, and Germany reached USD 31,714.2, USD 39,030.4, and 46,208.4 respectively.
Presence of Substitute Product to Restrain Market Growth
The substitute products, such as regular watches have a strong existence in the marketplace and hold a steady sentimental value among consumers worldwide. Inclincation of a large number of high-income consumers towards luxury watches and also middle- and many low-income consumers favoring regular watches are expected to hamper the market growth.
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IOS to Hold the Dominant Share due to Apple’s Robust Market Penetration
The global smartwatch market analysis can be conducted based on various operating systems such as IOS, Android, and Others. IOS is anticipated to hold the dominant market share on account of the Apple brand’s strong market penetration in the wristwatches market worldwide. The growth is attributed to Apple’s higher edge when it comes to the overall built quality, features, and durability as compared to other products.
The android and other segments are also gaining traction due to focus on a wider range of consumers and manufacturing varieties of products that are available even for people with lower power purchasing ability.
Male Segment to Lead Global Market Share Due to the Massive Presence of Tech Enthusiast
Based on end-user, the market is fragmented into male and female. Male segment is evaluated to be the larger market shareholder due to a large number of male population being fascinated by tech products and willing to make a higher spending as compared to women.
On the other hand, women segment also has witnessed an intensifying growth owing to key players increasingly manufacturing products specifically designed for women. For instance, Gadget.NDTV, in March 2021, stated that the Garmin Lily brand launched a women's wristwatch that even comes with a pregnancy tracker.
Significant Consumers’ Preference Towards Running Exercises Make Running Segment to Dominate Market
Based on end-user, the market is segmented into running, checking notifications, swimming, cycling, and others. Running is estimated account for a significant percentage of the smartwatch market share as it is one of the most popular and easy exercising activities. Additionally, growing awareness regarding the health benefits of running among youngsters is further supporting the running-purpose wristwatch demand globally.
Besides, checking notifications, swimming, cycling, and other segments have also experienced a significant development owing to working professionals increasingly using the device for alert notifications. Also, people participating in outdoor activities, such as swimming and cycling increasingly incorporating smart devices to help improve their skills boosted the usage in this segment.
North America Smartwatch Market Size, 2020 (USD Billion)
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Singificant Working Population’s Preference for Wristwatches Result North America to Dominate Market
North America is holding the leading share in the market, boasting a size of USD 7.13 billion in 2020. The people of this region making massive expenses on consumer units are expected to play a vital role in the market progression. In September 2021, the U.S. Bureau of Labour Statistics claimed the United States average yearly expenditures for every consumer unit were USD 61,334. Likewise, the elderly population making high expenditure on tech products is expected to have a notable impact on the consumption rate. In January 2020, the American Association of Retired Persons asserted that 51% of older Americans proclaimed to purchase tech in the past year.
Europe is anticipated to display a significant growth owing to the low youth unemployment rate, giving end-users a higher spending ability. The trend is fostered by the growing number of youth consumers being inclined towards smart wearable devices as compared to the rest of the population. The World Bank.Org stated that the youth unemployment rate of the European Union in 2019 was 16.83 % which was a decline from 18.02% in 2018. In addition, the high physical activity participation rate in the European Union countries is expected to provide a vital contribution to the growing demand as it assists in monitoring and helps enhance their performance. Global Wellness Institute.Org claimed 46.6% of European population were evaluated to be participating in physical activity in 2018.
Asia Pacific is projected to have a vital presence in the global market. Rising disposable income across the emerging economies is likely to foster the product demand. As per the Hindu Business Line, in July 2019, India had lifted 271 million people from poverty within ten years. In addition, the escalating production of affordable smart wearables, which is mainly targeting middle and lower class populations, is likely to boost the Asia Pacific smartwatch market growth. Gizmo China, in October 2021, stated that Xiamoi had launched an affordable wristwatch that comes with a slim bezel and 2.5 D glass.
South America is projected to show a considerable growth owing to the escalating growth of e-commerce businesses encouraging more people to spike their expenses on smart electronic goods. According to Trade.Gov, in January 2021, Brazil witnessed an e-commerce industry growth of 16 percent in 2019, compared to the prior year.
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The Middle East & Africa wristwatch market growth is attributed to the rising economic progress and increasing disposable spending of the population in the region. Take-Profit.Org disclosed the growth in per capita income of various countries, including Kenya, USD 79.58 billion in 2019 from USD 73.49 billion in 2018; and South Africa, first quarter of 2021 USD 221.58 from its prior year of USD 219.03 billion.
Key Players are Shifting towards Production of Health-Related Device to Gain a Competitive Edge
The companies operating in the market are progressively shifting towards the manufacturing of health monitoring watches. This is anticipated to help surge the sales as more consumers are increasingly putting efforts into owning a device that assists in upholding their health. Mobi Health News, in September 2021, declared that the Withings band was launching its new cardiac-monitoring wristwatch in France, Germany, and the UK market.
An Infographic Representation of Smartwatch Market
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The global market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, end-users, and leading operating system. Besides this, the report offers insights into the current smartwatch market trends and highlights key industry developments. In addition to the aforementioned factors, the global market outlooks several factors that have contributed to the growth rate of the market over recent years.
Value (USD Billion)
By Operating System
Fortune Business Insights states that the global market size was USD 18.62 billion in 2020 and is projected to reach USD 58.21 billion by 2028.
In 2020, the North American market value stood at USD 7.13 billion.
Growing at a CAGR of 14.9%, the smartwatch market forecasted to grow from 2021 to 2028.
IOS operating system segment is projected to be the leading segment in this market during the forecast period.
The rising consumer's inclination towards smart wearables is one of the major factors driving the market's growth.
Apple Inc, The Samsung Group, Garmin Ltd., Fitbit LLC, Huawei Technologies, and others are few of the key players operating in the market.
North America dominated the market share in 2020.
The growing online promotional activity is expected to drive the adoption of this product.
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