Market Dynamics
Wearable Fitness Trackers Market Drivers:
Increasing Health Awareness Among the Consumers
The wearable fitness tracker is an emerging technology that is being widely used. Many global players are now in the race to manufacture highly advanced fitness trackers to dominate the market. These players integrate advanced features in their products, such as IoT, artificial intelligence, and wireless connectivity. Wearable fitness trackers are widely used to promote health monitoring awareness among consumers. These watches offer various health benefits such as heart rate tracking, sleep monitoring, steps monitoring, and pulse tracking.
The market is expanding due to increased investment in strategies for creating innovative technologies to help advance healthcare and fitness. Wearable fitness trackers make it simple to monitor and keep tabs on daily fitness activities, including steps done, calories burned, distance traveled, and others. The wearable fitness trackers can easily be connected to a smartphone via Bluetooth or wireless networking. Therefore, the increase in demand for wireless sports and fitness equipment is a crucial factor supporting the global market's expansion.
Wearable Fitness Trackers Market Drivers
Emergence of a Large Number of Players in the Market
Major brands like Apple Inc., Fitbit, and others dominate the market for wearable fitness trackers. However, numerous essential competitors are joining this industry from China and other nations. Several newcomers to the wearable fitness tracker industry, including Nike, Casio, LG Electronics, and Garmin, are investing more in the design and development of affordable goods with improved, innovative features that open up the lucrative international market potential for the product. Additionally, Huawei has introduced its handy, feature-rich, cost-effective classic line of smartwatches. This further fuels the expansion of the wearable fitness trackers market on a global scale and assists in attracting a broad consumer base.
Wearable Fitness Trackers Market Restraint
High Initial Cost of Wearable Fitness Devices
Due to the integration of numerous devices, such as sensors, screens, and other components, into a small, portable device, wearable fitness trackers have intricate circuit topologies. The gadget has multiple tiny semiconductor components, with a core diameter of 10 micrometers. Design professionals have difficulty linking many components into a single device because control ICs are only a few hundred nanometers in size.
High skill and initial investment are required due to the accuracy needed for the design, development, and raw materials. Fitness trackers are typically regarded as high-end wearable technology. Global luxury brands like Louis Vuitton, Tag Heuer, Emporio Armani Connected, and Fossil are creating high-end goods that cost anywhere from USD 2,900 to USD 180,000. Therefore, the high cost of these intelligent gadgets significantly slows down the growth of the market on a global scale.
What Are Future Opportunities in Global Wearable Fitness Trackers Market
Growing Investments in Building Connected Ecosystem
The main factors driving demand for wearable fitness trackers are the rise in data reliance among users and the rise in interest in linked and smart systems. These discreet fitness monitors may be worn to answer calls, receive text messages, listen to music, play games, and more. The smartphone makes it simple to access the mobile phone. In the future, its connectivity with many other gadgets will lead to ecosystem development. By 2050, 68% of the world's population, according to the UN, is expected to live in cities. Additionally, a rapid increase in IoT spending overall is anticipated in Asia-Pacific. For instance, to create a national IoT ecosystem, the South Korean government agreed to invest USD 350 million in over 300 potential businesses predicted to be globally competitive in the next four years.
Regional Analysis
By region, the global wearable fitness trackers market trends are analyzed across North America, Asia-Pacific, Europe, and LAMEA.
North America Dominates the Global Market
North America holds the highest market share and is estimated to grow at a CAGR of 15.5% during the forecast period. The global market in North America is maturing. North America is anticipated to have a leading position in the wearable fitness trackers market globally due to the availability of cutting-edge technology in the region and significant players functioning in the industry. The US is a very lucrative market for wearable fitness trackers because it is home to businesses like Apple, Fitbit Versa, Garmin, and Fossil Group.
Asia-Pacific is the second-largest and fastest-growing region. Growing at a CAGR of 19.5%, it is predicted to be worth USD 68 billion by 2031. The wide range of products offered by the companies, covering a variety of price points, aids in the establishment of a stable customer base throughout Asia. Smartwatches and smart bands shape the markets for wearable fitness trackers in China and India. Apple has a sizable client base for its iPhones in the area, and it is anticipated that its debut into the market for wearable fitness trackers will draw in a sizable number of users. Android Wear OS or other third-party smartwatch OS provides a software platform for wearable fitness trackers manufacturing companies.
Europe is the third-largest region. Implementing different marketing strategies such as celebrity endorsement is expected to increase the market share of the companies. The UK is one of Europe's major economies and has witnessed rapid advancement and development of consumer electronic products. The adoption of IoT in smartphones has led to an increase in the usage of smart mobile phone accessories. This is expected to drive the wearable fitness trackers market growth in the UK.
Segmental Analysis
The global wearable fitness trackers market share is segmented into device type, component, connectivity, operating system, distribution channel, application, and region.
On the Basis of Device Type
By device type, the market is classified into Smartwatches, Fitness Bands, Smart Glasses, Smart Clothing, and Others.
The Smartwatches segment is the highest contributor to the market and is estimated to grow at a CAGR of 16.6% during the forecast period. An increase in the level of health and fitness awareness amongst people is likely to foster the growth of the smartwatches industry in the near future. A rise in the need for wireless sports and fitness gadgets is predicted open up the scope of development for the global market.
The Fitness Bands segment is the fastest growing. The surge in trend of using fitness tracking devices, increase in awareness about various health-related issues such as obesity, and rise in demand for continuous and wireless health monitoring devices are significant factors expected to positively influence the market demand for fitness trackers during the forecast period.
On the Basis of Component
By component, the global wearable fitness trackers market is classified into Hardware and Software.
The Hardware component was the highest contributor to the market and is estimated to grow at a CAGR of 16.9% during the forecast period. Key drivers for the market's growth include a surge in demand for low latency and real-time processing on edge devices and the emergence of AI coprocessors. However, low power consumption and reduced size parts are a trend in the market.
The Software component is the fastest growing. The market's growth is attributed to an increase in the number of gym and health clubs, a rise in facility space and equipment in fitness clubs, and a surge in alertness about fitness and health.
On the Basis of Connectivity
By connectivity, the global wearable fitness trackers market is classified into Bluetooth, Wi-Fi, Cellular, NFC, and Others.
The Bluetooth segment is the highest contributor to the market and is estimated to grow at a CAGR of 17.1% during the forecast period. The growth in IoT applications and rise in demand for health & fitness products drive the development of the market. At present, many start-ups are developing new apps that can control a specific device. The market of apps is ever-increasing and is triggered by the demand for smartphones and these apps, which in turn drives the market growth.
The NFC segment is the fastest growing. An increase in smartphone penetration and convenient transfer and security of data are the factors that boost the market growth. NFC technology allows users to interact with other devices to access information. It is designed to simplify the transfer and sharing of data. Thus, these factors collectively generate growth opportunities for the market.
On the Basis of Operating System
By operating system, the global market for wearable fitness trackers is classified into Android, iOS, Windows, and Tizen.
The Android segment is the highest contributor to the market and is estimated to grow at a CAGR of 16.6% during the forecast period. Major wearable fitness tracker market players focus on developing products that work on the Android operating system. For instance, Samsung Galaxy Smartwatch, Fossil Hybrid, Huawei Watch GT 2, and Fitbit Versa 2 use an android operating system in their smartwatches as it is convenient and user-friendly. This is expected to boost the growth of the segment in the market.
The iOS segment is the fastest growing. The Apple smartwatch segment can beam messages, simplify applications, and provide Siri to the wrist of the user. The features embedded by iOS in its smartwatches eliminate the need to take out mobile devices to check notifications. The operating system of iOS ensures functionality such as cycle tracks, noise tracking, voice memos, audiobooks, activity trends, watch faces, and reminders. These factors drive the growth of the global market.
On the Basis of Distribution Channels
By distribution channels, the global wearable fitness trackers market is classified Online and Offline.
The Offline segment is the highest contributor to the market and is estimated to grow at a CAGR of 16.5% during the forecast period. Factors such as being easily ordered on short notice, the feasibility of customization, and the facility to create impressive exhibition stands drive the growth of the global market.
The Online segment is the fastest growing. The rise in digitalization, surge in the e-commerce sector, lower business overhead and operating costs, greater sales reach & customer accessibility, improved communications channels, and ability to integrate valuable reporting tools are the major factors responsible for the development of the global market. The dominance of online channels is also due to an increase in internet penetration and the easy availability of smartphone apps, which propels the growth of the online distribution channel for the market.
On the Basis of Application
By application, the global wearable fitness trackers industry is separated into Running, Cycling, Heart Rate Tracking, Stress Management, and Others.
The Running segment is the highest contributor to the market and is estimated to grow at a CAGR of 16.3% during the forecast period. Fitness, health, and data tracking wearables have become increasingly popular. With a fitness tracker, users can keep track of physical activity and its success. Fitness trackers also log the food and water intake. These trackers use Bluetooth to keep users apprised of notifications while on the run or lifting weights. These features boost the adoption of wearable fitness trackers in the market.
The Heart Rate Tracking segment is the fastest growing. An increase in sports activities and the rise in the number of health-conscious people have been observed as critical drivers for the increase in demand for the product. Moreover, tech-savvy millennials opt for wearable fitness trackers equipped with heart rate monitoring systems as they are comfortable and present a trendy outlook. These mentioned factors, coupled with the demand for handy diagnostic equipment, have been projected to propel the market for the product.
Top Key Players
Apple Inc
Fossil Group, Inc
Garmin Ltd.
Samsung Electronics
Google LLC (Alphabet Inc.)
Huawei Technologies Co., Ltd. (Huawei)
NIKE, Inc.
Sensoria Inc.
TomTom N.V.
Xiaomi Corporation.
Others
