Wearable AI Market

Market Overview

The global wearable AI market size was valued at USD 27,067.75 million in 2022. It is estimated to reach USD 221,351.41 million by 2031, growing at a CAGR of 26.3% during the forecast period (2023–2031).

AI in wearable devices enhances the system's functionality and performance by supplying real-time data and statistics, enhancing the decision-making process, monitoring the users, and interacting with them. The Internet of Things (IoT) enables machine-to-machine communication and provides connectivity to a cloud platform, allowing peripheral devices to utilize artificial intelligence. Wearable AI can monitor and react to a person's physiological and psychological data, such as their heart rate, speech patterns, and state of mind.

AI technology augments the capabilities of existing wearable accessories by adding capabilities such as machine learning, analytics, and enhanced real-time aural and visual feedback, among others. The usability of modern wearable technology spans a wide range and includes Bluetooth headsets, VR headsets, AI smart wearable glasses, fitness trackers like smartwatches, and fitness jewelry. Each AI wearable device functions differently depending on the area they fall under, like fitness, health, or entertainment.

Market Dynamics

Global Wearable AI Market Drivers

Advancement of IoT and Integration of Wireless Technology

The main objective of IoT and AI is wireless connectivity with intelligent operation control. Further, the advancement of these technologies with the miniaturization of computational devices promotes the integration of AI in these wireless wearable devices. An example of an intelligence amplification gadget that has lately and quickly gained popularity is the hearable or wireless in-ear computational earpiece. One example is Apple's AirPods, which use voice commands to interact with Siri and connect to Apple devices. Moreover, Apple has applied for a patent for earbuds with biometric sensors that monitor a user's heart rate, temperature, and movement.

Similarly, Google's Pixel Buds give users direct access to Google Assistant and its powerful knowledge graph. Google Assistant seamlessly connects users to information stored on the Google platforms, such as email and calendar management. Google Assistant also provides users with highly personalized recommendations, helps automate personal communication, and offloads monotonous tasks, including setting timers, managing lists, and controlling IoT devices. Therefore, the advancement of IoT and the integration of wireless technology is anticipated to stimulate market growth.

Growth in the Adoption of AI Assistants

The residential, commercial, and industrial sectors have been making more use of AI help systems in recent years. Autonomous wearable devices assist users and provide ease and convenience in accomplishing tasks. For example, smart wristwatches from Samsung, Gear s2/s3, which incorporated home assistant UI and support light switching, scripts, groups, and covers. Therefore, using such intelligent wearables makes daily activity easy for consumers, increasing the market demand.

Global Wearable AI Market Restraint

Short Life of Smart Wearables

The wearable AI devices offered as products through on-premise and off-premise do not offer long-duration operation. Smart wearables are offered at a high cost with short operation life, whereas conventional electronics provide longer operational life at a low price; this impacts the growth of the market. In addition, smart wearable devices have a low operation span over a single charge, making them unsuitable for travelers. Therefore, these devices' lower battery span and short life hamper the market.

Global Wearable AI Market Opportunities

Advancement in Personal Computing

Personal computing over the years has advanced due to technological advancements. Business executives have a fantastic opportunity to profit from intelligence-boosting technologies. Each new gadget lowers the information gaps between people and organizations even more and offers a fresh platform for companies to create tools for connecting with clients, staff, and partners. In addition, business leaders and stakeholders have begun to plan for an update of their computing systems that would incorporate intelligent interactions between the nodes and servers since intelligence-amplifying gadgets are anticipated to be the main way people engage with the world. Therefore, the factors above are expected to further contribute toward the growth opportunities for this market during the forecast period.

Regional Analysis

Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant global market shareholder and is anticipated to exhibit a CAGR of 22.6% over the forecast period. North America is considered among the most developed across the world. These countries have advanced from automation to autonomous technologies, increasing the demand for wearable AI devices. Autonomous technologies also use self-operating software and hardware owing to their self-learning capabilities. The high disposable income of people allows them to purchase wearable devices such as smart watches, smart wearables, and other such devices. In addition, the growth in the trend of video games among youth has led to the penetration of wearable AI accessories such as wearable gloves, headgear, and others, including gaming accessories. The advancement of healthcare has also increased the demand for wearable AI devices that indulge in continuous health monitoring of patients.

Furthermore, North America is analyzed across the U.S., Canada, and Mexico. The U.S. is the leading market owing to the highest penetrations of industrial revolution 4.0. The use of IoT and AI in the industrial sector has increased the demand for wearable AI technology. Smart wearable devices also assist in industrial operations. Likewise, developing AI and machine learning is profitable and will support the local market.

Europe is estimated to exhibit a CAGR of 24.9% over the forecast period. The industrial sector supports the European economy. The adoption of wearable AI in industries due to the various applications such as connected workers, remote management, safety, and security has led to the demand for AI devices. The region has technologically advanced countries, out of which most are developed and in the developing phase. Therefore, technical advancement is one of the major factors in adopting wearable AI technology. In addition, Germany dominates the regional market. Germany is a developed nation with automotive, chemicals, metals, coal, ships, textiles, and other major manufacturing industries. Over the years, German industries have adopted autonomous devices for AI assistance. Hence, the region demands wearable AI for various applications in automotive industries, especially for augmented and predictive modeling. For instance, in Epson's Moverio BT-350 Smart Glasses, the embedded camera allows the glasses to overlay digital information related to the wearer's sight. It has practical uses in the construction and design industries since it can supplement procedures in these fields to produce a digital representation of the final model to be built.

Asia-Pacific is considered the fastest-growing region in terms of technological advancement and economy. The region has various industrial sectors such as chemicals, mining and coal, food and beverage, textile, and others. The rapid transformation from automated devices to autonomous devices due to the integration and advancement of IoT and AI technologies increases the need for the market. The countries in Asia-Pacific focus on smart consumer electronic wearable devices such as smart watches, smart wearables, and other smart devices. The regional companies also focus on capturing the smart device market by offering low-range intelligent electronics to the premium range.

Furthermore, the Asia-Pacific market is analyzed across China, Japan, India, South Korea, and the rest of Asia-Pacific. China is formulating new policies to promote the wearable AI industry. For instance, the Chinese State Council published the "New Generation Artificial Intelligence Development Plan" in July 2017. With this policy, China plans to develop a domestic AI industry worth nearly $150 billion over the coming years and surpass all other AI powers by 2030. This formally established the growth of the AI industry as a national priority.

LAMEA comprises developing nations and countries with vast opportunities for intelligent technology adoption. The region has recently witnessed the establishment of various industries. The region's lack of a skilled workforce challenges the market. The adoption of AI by governments and firms in the region drives the market of wearable AI. For instance, the Uruguayan government acquired the predictive policing software Predpol intending to deploy police officers more effectively and predict where crimes are likely to occur. The Middle East has countries with strong economies. This provides the government and citizens with high expenditure capacity. The region's governments support developing AI-based infrastructure that connects people to their surroundings. The initiatives fuel the demand for wearable devices.

Segmental Analysis

The global Wearable AI market is segmented by type and application.

Based on type, the global Wearable AI market is bifurcated into smart watches, smart glasses, smart earwear, smart gloves, and others. 

The smart glasses segment dominates the global market and is expected to grow at a CAGR of 24.5% over the forecast period. Smart glasses are wearable computers in the form of spectacles or sunglasses. Smart glasses add information alongside the sight of the wearer. Smart glasses can change optical properties according to the external environment, which provides the user the convenience of using the same glasses indoors and outdoors. In addition, the key players integrate various technologies into the glasses. The smart glasses are equipped with voice assistance AI such as Alexa, google assistant, and other virtual assistants, drone assistance, and others. For instance, the ODG R-9 at Osterhout Group, powered by Qualcomm's Snapdragon 835 SoC and 6GB of RAM, is one of the most feature-packed smart eyewear. It is designed to provide more industrial options— with a 50-degree field of view—and offers 1080p resolution and a 13-megapixel front-facing camera that can record 4K video.

A smartwatch is an intelligent computer in the form of wrist watch that keeps the user connected to other smart devices. It allows access to various applications on a user's wrist and provides benefits such as keeping a health check and monitoring daily physical activities. The innovations of smartwatches by the key players drive the smartwatch market. For instance, Xiaomi officially launched the Mi Smart Watch in Beijing, China. The watch comes with various smart as well as fitness features. The smartwatch also includes features such as GPS, Wi-Fi, NFC, accept or reject calls, read or send messages and emails, and play or pause music, among other things.

Based on application, the global market is segmented into consumer electronics, healthcare, automotive, military and defense, media and entertainment, and others. 

The consumer electronics segment owns the highest market share and is estimated to exhibit a CAGR of 23.9% during the forecast period. Consumer electronics refer to home electronics devices. These devices are developed for everyday use, which include smart watches, smart wearables, and others. Incorporating advancing AI technology with wearable electronic devices drives the market. The rise in investment in R&D on wearable AI is lucrative to create future opportunities. For instance, wearables, or wireless in-ear computational earpieces, are recently and quickly accepted intelligence amplification technology. Apple has also issued a patent for earbuds with biometric sensors that track a user's movement, temperature, and heart rate. Similarly, Google Assistant provides users with highly personalized recommendations, helps automate personal communication, and offloads monotonous tasks, including setting timers, managing lists, and controlling IoT devices.

The military and defense vertical includes electronic devices and systems that assist these security forums in building various strategies, surveillance, and other plans. Military and defense have the highest investments from developed and developing nations worldwide. Military technology has developed significantly, and modern-day soldiers even carry micro-unmanned aerial vehicles (UAVs/drones) as portable gear. Furthermore, the adoption of smart eyewear, smart wearables, smart wrist display panels, and other technologies drive the market of wearable AI. For instance, the U.S. Military's DARPA (Defense Advanced Research Projects Agency) unit is developing a Google Glass-like augmented reality system for the battlefield. This system allows commanders to send maps and other information directly to the soldier's field of vision. The device can be integrated with the weapons control system and is fitted to a military helmet. Soon, soldiers' adoption of wearable technologies is expected to provide lucrative opportunities for wearable AI.

Recent Developments

• March 2023- Apollo Neuroscience announced the arrival of Apollo LabsTM, the first wearable technology powered by artificial intelligence that responds to changes in your body instead of simply monitoring them. The ApolloTM wearable emits low-frequency sound waves, felt as scarcely perceptible, calming vibrations known as Apollo VibesTM, that restore balance to the nervous system, enhancing cardiovascular metrics and sleep and decreasing feelings of stress and anxiety.

• May 2023- Zepp Health Corporation, a world leader in smart wearables and health technology, announced the development of new generative AI-powered intelligent features and solutions that will continue to empower individuals throughout their fitness and wellness journeys.