Smartwatch Market Size, Share & Trends Analysis Report  By Type (Extension,  Standalone,  Classical),  By Application (Personal Assistance,  Wellness/ Healthcare,  Sports), By Operating System (iOS, Android), Others (By Connectivity, NFC) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

 The global Smartwatch market size accounted for USD 48,148.60 million in 2023. This market is expected to grow by USD 108,893.2 million at a CAGR of 25.78 % during the forecast period (2023-2031).

Smartwatches feature a built-in touchscreen for daily use and a corresponding smartphone app for management and telemetry. In the form of a watch, a smartwatch is a wearable computer. Early iterations of smartwatches could perform elementary functions like math calculations, digital timekeeping, translation, and gameplay. Smartwatches, on the other hand, have advanced functionality more akin to smartphones since their release in 2015, including mobile apps, a mobile operating system, and WiFi/Bluetooth connectivity. Several smartwatches function as portable media players thanks to Bluetooth headset playback of digital audio and video files and FM radio. Some watch phones, or "phone watches," include cellular capabilities like call-making.

The Internet of Things (IoT) wearable enables users to interact with coworkers remotely for video conferencing and supports data-driven decision-making. Smartwatches come with IoT-related technologies that transmit the gathered data to a distant server, enabling real-time behavioral tracking. Smartwatches built on the Internet of Things can also be connected to other IoT devices to track users' physical activity. Smartwatches with IoT capabilities are employed in many industries, including sports, edge analytics, computational offloading, biometric readings, automatic device connection, etc. The market is anticipated to be driven by smartwatches' expanding uses, which have enabled IoT applications with human components.

A few popular smartwatch apps are as follows

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

Market Dynamics

Global smartwatch market drivers

Growing urban population

As a smartwatch can easily access a mobile phone, enabling the user to make calls, send message notifications, listen to music, play games, etc., smartwatches spread knowledge about the emerging idea of tracking personal health and so embracing a healthy modern lifestyle. People are turning to technologically advanced smartwatches, which make life easier at your fingertips and allow you to track your everyday activities.

Massive investment in building smart cities 

The key success factors that support the demand for smart wearables are the rise in data dependency among end users and significant government investments in creating smart cities. Smartwatches can play games, make calls, listen to music, receive message alerts, and more. The smartwatch makes it simple to access the mobile phone.

Global smartwatch market restraints

High price

Even though smartwatches serve numerous purposes beyond simply telling the time, they are expensive and out of the reach of the typical individual. Additionally, its battery life is constrained, with some watches lasting just one or two days after being ultimately charged, and it is heavily reliant on the capabilities of a smartphone. When certain features are frequently used, energy consumption may occasionally be high, which could cause a smartwatch's battery to run out rapidly.

Global smartwatch market opportunity

Increased spending on healthcare

The progressive rise in the number of older adults, their different age-related ailments, and the rise in heart-related issues among young people are driving up consumer healthcare spending, driving demand for smartwatches. The adoption of watches that aid in exchanging health data with experts and alerting emergency services in times of need results from an increase in the home healthcare approach among consumers. Additionally, the key players' strategy of growing the company through strategic alliances and acquisitions is anticipated to accelerate the expansion of the smartwatch industry.

Hybrid smartwatches

The hybrid smartwatch, which combines the features of a smartwatch and a traditional mechanical watch, gives companies in the smartwatch market a considerable advantage. A hybrid smartwatch lacks a touchscreen user interface and charging capabilities but has all the characteristics of a conventional smartwatch (plus certain linked features). It appears like a typical mechanical watch with additional functions like a heart rate tracking system and a calorie (burned) tracking system, but it is smart with Bluetooth connectivity. Customers, particularly those in the upper and business classes, have demonstrated a strong love for these hybrid smartwatches, as opposed to more complicated smartwatches that need a lot of technical expertise to work effectively and extended charging times. As a result, the market's players may expect this segment to rise rapidly.

Regional Analysis

 Depending on the region, the market is analyzed in North America, Asia-Pacific, Europe, and LAMEA. North America dominates the market.

North America

North America holds a significant market share and is expected to grow at a significant CAGR during the forecast period. In North America, demand for smartwatches has been significantly fueled by the success of Apple, Inc.'s smartwatch line. The rapid adoption of new technologies and the early availability of recently launched products have been key market growth drivers. In addition, more connected devices and the incorporation of IoT into smartwatches, which increases user convenience, have led to higher sales in North America.

Europe

 Europe has become one of the largest regional markets, and it is anticipated that it will continue to develop at a stable rate during the forecast period. Market expansion is expected to be fueled by increased connected car sales and rising disposable incomes among the populace in European nations. Additionally, the growing propensity of young consumers for intelligent wearables is anticipated to fuel market expansion.

Asia-Pacific

Asia-Pacific is expected to have the quickest development in the market due to the region's booming consumer electronics industry and the sudden rise of market vendors in developing nations. Factors influencing the market's growth include the rise in chronic disorders like obesity and diabetes and the popularity of health and fitness to maintain a healthy lifestyle.

LAMEA

The LAMEA Smart Watch market is divided into Brazil, Argentina, the United Arab Emirates, South Africa, Nigeria, Saudi Arabia, and the Rest of LAMEA based on country. Brazil continues to be the market leader for smartwatches in LAMEA. South Africa and the United Arab Emirates would both see strong CAGRs.

Segmental Analysis

The global smartwatch market is segmented By Type, Application, Operating System, Connectivity, and region.

Based on type, the market is further segmented into extension, standalone and classical, where extension dominates.

Extension

the extension segment holds the largest market share and is expected to grow at a CAGR of 25.9% during the forecast period. The rise of feature-rich smartwatches, frequently used for the augmentation of smart devices, is responsible for the increase in demand for this type.

Standalone

SIM cards are included in standalone smartwatch utilities so that you can make and receive calls without a phone. Additionally, the category is being advanced by the growing demand for intelligent devices that monitor everyday activities.

Classical

The Classic type has a rotating bezel and is slightly larger and thicker. Hence, they hold a minor market share.

Based on application, the market is again segmented into personal assistance, wellness/healthcare, and sports.

Healthcare/wellness

Healthcare/wellness holds a significant share of the market. Smartwatches are discrete and simple to put on. While biosensor-equipped smartwatch technology has the potential to be helpful in several healthcare applications, thorough research regarding their use in clinical settings is required. 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 identify individuals at risk proactively.

Sports

Athletes and sportspeople have proven to be important markets for smartwatches with a sports focus. Step counters, training reminders, stopwatches, and timers are just a few of the standard features of sports smartwatches. The device's wearable component is a crucial component that enables unrestricted physical activity and gathering fitness data.

Personal assistance 

Users can easily handle everyday activities thanks to smartwatches that have virtual assistants integrated to aid with day-to-day tasks and voice recognition.

Based on the operating system, the market is further segmented into ios, android, and others.

iOS

The iOS segment holds a significant market share and is expected to grow significantly during the forecast period. It is compatible with portable devices, such as iPhone, iPad, iPod Touch, and smartwatches, offering multi-touch interfaces, such as swipe, tap, pinch, and reverse pinch. Adding to this, it facilitates ease and comfort, rapidly saves the battery from discharge, and supports multitasking.

Android

Since Android is an open-source operating system, most smartwatch manufacturers provide watches with this platform. Additionally, the adoption of Android devices is anticipated to support market growth over the projection period.

Others

The other segment is anticipated to grow significantly steadily as more businesses release smartwatches with various cutting-edge operating systems, including RTOS and WatchOS.

Based on connectivity, the NFC segment is the dominating segment.

NFC

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

Recent Developments

In September 2022, Apple introduced a new, ground-breaking design with ground-breaking features- Apple watch Ultra.

In September 2022, Apple unveiled the new Apple Watch SE and Apple Watch Series 8.

In March 2022, The top-of-the-line Instinct 2 Series, a purpose-built bold color smartwatch created for rugged individualists, was introduced by Garmin India, a division of Garmin Ltd. (NASDAQ: GRMN).