Smartwatch Market

Market Overview

The global smartwatch market size was valued at USD 32.42 billion in 2022. It is projected to reach USD 64.21 billion by 2031, growing at a CAGR of 7.7% during the forecast period (2023–2031).

The acknowledgment that health is the only wealth steals the thunder of all the worldly possessions. Health and fitness are unquestionably the most ideal paths to lead a complacent and happy life, forget about the fickle affluence. Smartwatches disseminate the awareness about a newborn idea of tracking personal health thereby incorporating a healthy modern lifestyle as a mobile phone can be easily accessed by a smartwatch enabling the user to make calls, send message alerts, listen to music, play games, etc. As a result, people are moving towards technologically advanced smartwatches for tracking their daily activities, making life simpler on fingertips.

Many smartwatches are launched with a prime focus on health. Such as Apple watch series 4, launched in September 2018, can track heart rate, emergency or inactivity alerts, nervous system, and health-related events. Similarly, in March 2019, Fitbit launched four new wearables namely, Fitbit Versa Lite Edition, Fitbit Inspire HR, Fitbit Inspire, and Fitbit Ace 2 for making health and fitness accessible and affordable for the consumers across the globe. However, privacy and security concerns with the use of smartwatches are anticipated to hamper the market growth during the forecast period. Smartwatches collect personal data, such as, from the number of steps taken in a day to various financial information if the device is enabled to make payments. And if such data collected is maliciously captured by the third party, it can lead to cybercrime. Additionally, smartwatches control smart home, which might increase the possibility of theft if the security setting is not updated correctly.

In February 2019, Nubia Alpha announced the launch of foldable smartwatch rolling out in China from April followed by Europe and North America. Nubia Alpha features air interaction mechanics, motion gestures, voice-based commands, 5-megapixel camera for photos and video recording, and 500mAh battery with two days of battery backup. Similarly, the increasing integration of haptics technology in smartwatches is also expected to boost the global smartwatch market growth during the forecast period. It is used in smartwatches, smart jewelry, and other fitness devices for alerts and notifications. 

Few Popular Smartwatch Apps are as Follows

• Google Fit
• Water Drink Reminder
• One minute workout
• FittWell Personal Fitness Coach
• Endomondo – Running and Walking
• 7 Minute Workout

Segmental Analysis

Based on type, the extension segment holds the largest market share in 2019 and is expected to grow at a CAGR of 25.9% during the forecast period. The growth is attributed to innovative features offered by smartwatches, such as tracking, alerts, and connectivity. Extension smartwatch is followed by hybrid smartwatch and standalone smartwatch holding the market share of 30% and 12.68% respectively in 2019.

Based on Application, the market is segmented into personal assistance, healthcare/wellness, sports, and others (spiritual wellness, gaming, kids’ learning, and fashion). The healthcare/wellness segment holds the largest market share of 38.04% and is followed by sports, personal assistance, and other segments. According to Juniper, by 2023, the healthcare sector will be entitled to remotely monitor five million individuals using the data generated by smartwatches combined with AI-enabled software analytics to proactively identify individuals at risk.

Based on Connectivity, NFC Segment is expected to grow at the highest CAGR, owing to its growing adoption by brands like Apple (Watch), Samsung (Galaxy Gear), etc. Samsung Gear S3 smartwatch supports both NFC and MST contactless payments with and without a phone. Few popular smartwatches that support NFC connectivity are Fossil Q Explorist, LG Smart Watch, Michael Kors Access Sofie, Skagen Falster, TAG Heuer Connected Modular 45, Fitbit Versa, Huawei Watch 2, and TicWatch Pro.

Based on operating system, iOS segment holds the largest market share, as, it is compatible with portable devices, such as iPhone, iPad, iPod Touch, and smartwatches, offering multi-touch interface, such as, swipe, tap, pinch, and reverse pinch. Adding to this, it facilitates ease and comfort and saves the battery from discharge rapidly and also supports multitasking.

Regional Analysis

Based on regions, the market is segmented into: North America, Europe, Asia Pacific, and LAMEA.

• North America
  • In 2018, the shipments of smartwatch grew by more than 35% in North America, Samsung holding the largest market share.
  • The major focus of smartwatch vendors in North America is smartwatches offered between US$ 200 TO US$ 299 price segment.
  • In May 2019, Apple confirmed the launch of ECG app for smartwatch in Canada.
• Europe
  • In March 2019, the feature of Apple Watch ECG went live in UK and Europe. It had an update of WatchOS 5.2. According to Apple, the Samrtwatch offered is "CE marked and cleared in the European Economic Area".
  • In February 2019, EU recalled children's smartwatch over data fears.
• Asia- Pacific
  • In 2018, China holds the largest market share in Asia Pacific and the growth is attributed by the growing penetration of internet and the increase in spending capacity of the people.
  • In July 2019, China issued 17,000 smart watches to pupils to track movements.
  • In May 2018, Chinese manufacturing giant, Xiaomi, released its new Xiaomi Mi Band.
• In LAMEA
  • Brazil holds the largest market share in LAMEA, and the growth is attributed by the growing awareness and the launch of various smartwatches in the region.
  • Such as, Galaxy Watch LTE gained support from Brazil and is available for claro customers in the region.
  • Brazil is followed by Saudi Arabia and South Africa, with the combined share of more than 25% in the base year.

Smartwatch Market Segmentation

By Type

• Extension
• Standalone
• Classical

By Application

• Personal Assistance
• Wellness
• Healthcare
• Sports
• Others

By Operating System

• iOS
• Android
• Windows
• Others

By Connectivity

• Bluetooth
• Wi-Fi
• Near-Field Communication (NFC)
• Cellular Network

By Regions

• North America

  • U.S.
  • Canada
  • Mexico

• Europe

  • U.K.
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe

• Asia-Pacific

  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia-Pacific

• LAMEA

  • Brazil
  • Saudi Arabia
  • South Africa
  • Rest of LAMEA