Wearable Technology Market Size, Share & COVID-19 Impact Analysis, By Type (Smart Glasses, VR Headsets, Smart Jackets and Smart Rings, Smart Watches, Fit Bands), By Technology (IoT Based, AR and VR, Others), By End Use (Health and Fitness, BFSI, Gaming and Entertainment, Fashion, Travel, Education, Logistics & Warehouse), and Regional Forecast, 2023 – 2030

The global wearable technology market size was valued at USD 93.28 billion in 2022. The market is projected to grow from USD 120.54 billion in 2023 to USD 931.31 billion by 2030, exhibiting a CAGR of 33.9% during the forecast period.

Wearable technology is a form of device or electronic device that can be worn on the body (e.g. watch, jacket, belt), implanted in the body (e.g. tracker heart rate monitor, birth control chip) or in some cases body tattoo (i.e. glowing or discolored tattoo). In the scope, we have considered wearable technology provided by key players such as Samsung Group, Apple, Inc., Sony Corporation, Microsoft Corporation, Fossil Group, and Huawei Technologies, among others. Wearable technology is a collective term for a group of devices designed to be worn all day long, such as smartwatches and fitness trackers. These devices are frequently called wearables for short. 

Increasing changes in consumer demographics, such as changes in lifestyle and inclinations, are expected to boost product demand, which in turn drives industry growth. Additionally, high consumer spending on personal care products is expected to support demand for wearables. The demand for smartwatches among swimmers, runners, cyclists, and gym goers is increasing due to the track calories burned, hourly activity, and downtime. 

COVID-19 IMPACT

Declined Purchase of Electronics Devices Owing to Shutdown of Manufacturing Industry Restricted Market Growth

Demand for wearable devices dropped during the COVID-19 pandemic leading to a decline in sales. A survey conducted in the first week of April 2021 received responses from a total of 3,312 individuals spanning across 15 countries exploring purchasing intentions. However, wearable technology devices were the least favored by respondents due to perceived redundancy during COVID-19 lockdowns. Moreover, global demand for wearable devices remained sluggish as individuals prioritized necessities over desire. Wearable devices such as smartwatches, bracelets, and trackers witnessed meager expansion amid the denial of permits for outdoor fitness activities, consequently resulting in decreased sales of these devices.  

LATEST TRENDS

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Increasing Popularity of AR Wearable among Users is Considered a Significant Trending Factor

Today, most wearable categories have a variety of products on the market to suit every budget.

Wearables will likely be directed toward the lifestyle rather than the business or technology market. For instance, Snapchat's Spectacles is tightly integrated with Snapchat's social sharing and messaging service. It allows users to upload images and videos directly on the app from the user’s device and is packed with fun AR technology that has garnered popularity.

While pioneers such as Apple Watch initially commanded premium price points, the trend of designing compact, efficient, and affordable wearables is now prevailing. This evolution has brought the arrival of affordable smartwatches, often sporting basic features to Apple's premium offerings. This trend finds its continuation in headwear wearables from Facebook, Google, and possibly Apple. Simultaneously, this accelerated development of apps and data services is anticipated to increase the user base for these wearables. Consequently, the merger of above factors are considered to shape wearable technology market trends.

DRIVING FACTORS

Rising Adoption of Smart Clothing Drives the Market Growth

Smart wear is expected to witness increased mainstream consumer adoption. The move is often fueled by collaborations between fashion and tech brands, such as the Levi Commuter x Jacquard Jacket, which allows users to control their mobile phone to access Google services or use gestures to control the phone and track users’ Uber location. Moreover, companies continue to see more specialized wearable technology applications, such as connecting the Nadi smart yoga pants to the wearer's smartphone app.  The advantage of clothing over small accessories such as watches and bracelets is that it covers a larger body area and may have deeper, more useful reasons. Samsung plans to develop a smart shirt to detect early warning signs of lung disease and other illnesses. Thus, the above factors contribute to the wearable technology market growth.

RESTRAINING FACTORS

Limited Battery Life of Wearable Devices Restricts Market Growth

The lack of a reliable and efficient battery structure without negotiating the ease of use and compactness of wearable devices is a limiting factor in the market. The big challenges are power demand management, power consumption, and battery recharging. Cost-effectively controlling power consumption to achieve energy efficiency in portable devices is a factor anticipated to have a limiting impact on the market.  

SEGMENTATION

By Type Analysis

Rising Investment in VR Technology by Businesses and Consumers Contributing to Segmental Growth

Based on type, the market is analyzed into smart glasses, VR headsets, smart jackets and smart rings, smartwatches, and fit bands.

The VR headsets segment accounted for over 30% of the market share in 2022. VR technology has great potential for various applications, such as industrial prototyping, medical training, and education. Increasing investment in VR technology by businesses and consumers is expected to drive the demand. The rising adoption of virtual reality technology directly impacts the development of the virtual reality headset industry. For instance,

• According to the 2022 Consumer Attitudes Toward Technology Survey, 32% of respondents stated they own VR devices while another 15% plan to purchase a device in this category within the next 12 months. 

The smartwatches segment is predicted to grow at the highest CAGR during the forecast period. Due to users' health awareness, demand for wireless fitness and sports devices, and technological advancements in smartwatches by market players are expected to impact the smartwatches segment. 

By Technology Analysis

Continuous Advancement in Microelectronics Contributing to IoT Based Segment Growth

The market is analyzed based on technology into IoT based, AR and VR, and others.

The IoT based segment accounted for over 43.2% of the market share in 2022. Internet of Things (IoT)- based technology is a rapidly growing field that has the potential to revolutionize various industries and enhance our daily lives. Continuous advancement in microelectronics has allowed for the development of smaller and energy-efficient components. These advancements have enabled the integration of various sensors, processors, and communication modules into compact wearable devices. IoT-based wearables have found significant applications in the healthcare sector, including early detection of medical conditions, remote patient monitoring, and continuous health tracking, contributing to the growth of IoT-based technology.

Further, the AR and VR segment is predicted to grow at the highest CAGR during the forecast period. These technologies have been gaining traction owing to advancements in display technology. Developing high-resolution and low-latency displays has significantly improved the visual experience in augmented reality (AR) & VR wearable devices. These advancements enable a more immersive and realistic virtual environment, leading to better user engagement.

By End Use Analysis

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Rising Health Consciousness by Individuals to Scale Health & Fitness Sector 

Based on end use, the market is divided into health & fitness, BFSI, gaming & entertainment, fashion, travel, education, and logistics & warehouse.

Among these, the health & fitness segment holds the major market share in 2022 owing to rising health consciousness. Individuals are increasingly aware of the importance of fitness and health. Wearable devices provide real-time data on vital health metrics, encouraging people to approach their well-being proactively. Additionally, rising remote health monitoring allows healthcare providers to track patients' conditions and progress without requiring them to be physically present at healthcare facilities. This is particularly valuable for patients with chronic illnesses and contributes to segmental growth.

The fashion segment will grow at the highest CAGR during the forecast period. The intersection of fashion and technology has sparked creativity and collaboration between fashion designers and tech companies. This collaboration has resulted in wearable tech products that are both stylish and technologically advanced. Wearables in fashion often offer customizable features, allowing users to personalize their accessories according to preference, style, and functional needs.

REGIONAL INSIGHTS

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The market is geographically studied across North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries

North America held the largest wearable technology market share in 2022. The region is a hub for technological innovations and advancements. The region’s strong research & development capabilities have led to cutting-edge wearable devices incorporating advanced sensors, processors, and connectivity features. The growing focus on health and fitness in North America has fueled the demand for wearable devices that track and monitor various health metrics such as heart rate, sleep pattern, and physical activity. Consumers in the region are keen on adopting technologies that can help them lead healthier lifestyles.

The Europe market is anticipated to grow at a considerable CAGR during the forecast period. The region has a significant aging population, leading to increased interest in wearable devices that can assist in elderly care, remote patient monitoring, fall detection, and other healthcare applications. European countries have actively promoted digital health initiatives, including wearable technology, to improve healthcare outcomes and reduce healthcare costs.

Asia Pacific is estimated to hold the highest CAGR during the forecast period. The region’s rapid urbanization and increasing disposable income have led to a growing demand. Asia Pacific is known for its strong mobile-first approach, with a high penetration of smartphones and mobile devices. The technology related to wearables integrated with mobile apps and services fits seamlessly into the region’s digital lifestyle, contributing to the region's market growth.

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The Middle East & Africa and South America are in a growing phase as major cities in these regions have shown interest in developing smart city initiatives, which could potentially include the integration of wearable technology for various urban services and applications.

KEY INDUSTRY PLAYERS

Key Players Focus on Launching and Expanding Wearable Technology to Boost Revenue

Companies operating in the market, including Fitbit, Inc., Sony Corporation, Xiaomi, Huawei, and Fossil Group are launching an updated series and version of wearables. Also, the high competition in the market is forcing SMEs to focus on upgrading strategies to strengthen their positions.

List of Key Companies Profiled:

• Samsung Group (South Korea)


• Apple, Inc. (U.S.)


• Fitbit, Inc. (U.S.)


• Sony Corporation (Japan)


• Xiaomi (China)


• LG Electronics (U.S.)


• Huawei (China)


• Microsoft Corporation (U.S.)


• Garmin Ltd (Switzerland)


• Fossil Group (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2023: Samsung Electronics and the National Sleep Foundation have stepped up their partnership to combat the rise in sleep disorders using new technologies. The tech company will use NSF information to improve its wearable innovations. 


• April 2023: QMS MAS (Medical Allied Services) launched a wide range of products under the Q Devices banner. This event was organized in cooperation with Varanium Cloud Ltd. It also announced Vyana, a revolutionary medical wearable. Vyana objects to meeting the growing requirement for medical wearables that deliver timely assistance. It is designed to constantly monitor critical parameters, send immediate notifications, and communicate directly to users and their emergency contacts in the event of significant fluctuations. 


• April 2023: Xiaomi launched Xiaomi Mi Band 8 smart wearable device. The Mi Band 8 features a tablet-molded dial with an AMOLED display. The Mi’s Band 8 bands are attached to both sides of the wearable unlike other models where the bands are wrapped around. 


• September 2022: Apple launched the new Apple Watch Series 8 and Apple Watch SE, upgrading two of the best-selling smartwatches with breakthrough performance and technology and significant security improvements. This Apple watch design is included in the Apple Watch Series 8, which features a large, durable, shatter-resistant front glass and an always-on Retina display.


• June 2022: Apple launched an updated feature for its watch series, WatchOS9. This feature comes with structures that allow users to track fitness and health most efficiently.

REPORT COVERAGE

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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation