Wearable Healthcare Devices Market

Market Overview

The global wearable healthcare devices market size was valued at USD 32.5 billion in 2023 and is projected to reach USD 68.4 billion by 2032, registering a CAGR of 8.6% during the forecast period (2024-2032). Wearable Healthcare Devices Market growth is primarily prompted by the growing adoption of 3G and 4G networks for uninterrupted healthcare services, growing access to smartphone-based healthcare devices, and a growing preference for wireless connectivity among healthcare providers.

Highlights

• Diagnostic Devices account for the largest share of the market by device type.
• Smartwatches generate the highest revenue share by product type.
• Sports and Fitness are the most common applications in the market.
• Consumer-Grade influenced the market growth by grade type.
• E-commerce occupies the maximum share of the market based on distribution channels.

Wearable healthcare devices are electronic gadgets that individuals can wear on their bodies to track different health parameters, gather data, and offer insights into their overall well-being. The popularity of these devices has increased due to advancements in sensor technologies, heightened awareness of personal health, and the growing trend of preventive healthcare.

The expected rise of businesses such as remote patient monitoring and home healthcare will impact the market, as well as a growing emphasis on Fitness and a health-conscious lifestyle. The industry offers tremendous prospects due to technology developments, merger and acquisition activity, increased clinical trials, and increased awareness of personal health monitoring.

Market Dynamics

Global Wearable Healthcare Devices Market Drivers

Prevalence of Chronic Diseases

The rising global prevalence of chronic diseases has fueled the adoption of wearable healthcare devices. Chronic diseases, such as diabetes, cardiovascular disease, and obesity, frequently necessitate ongoing monitoring and management. Wearable devices provide a proactive and personalized approach to tracking health metrics, allowing people and healthcare professionals to monitor and manage chronic conditions better. 

Furthermore, the World Obesity Federation's 2023 report predicts that the global economic impact of overweight and obesity will be USD 4.32 trillion annually by 2035 if prevention and treatment measures are not improved. Obesity raises the risk of developing chronic conditions such as type 2 diabetes, cardiovascular disease, and certain cancers, emphasizing the need for proactive health management strategies. The IDF Diabetes Atlas contains data and projections about the global impact of diabetes. It also shows that the prevalence of diabetes rises with age. For example, in 2021, the prevalence of diabetes was 2.2% among adults aged 20-24 and 24.0% among adults aged 75-79. The IDF predicts that the number of adults with diabetes will reach 700 million by 2045.

Similarly, the World Health Organization (WHO) states that cardiovascular diseases (CVDs) are the leading cause of death worldwide, accounting for an estimated 17.9 million deaths each year. Risk factors for CVD include hypertension, high cholesterol, and sedentary lifestyles, which necessitate ongoing monitoring and management. The prevalence of these chronic diseases highlights the critical importance of effective management and monitoring strategies. As the prevalence of chronic diseases grows, so will the demand for wearable devices that allow for proactive health monitoring and management, influencing the global wearable healthcare devices market trend.

Global Wearable Healthcare Devices Market Restraints

Data Privacy and Security Concerns

The increasing reliance on wearable healthcare devices for continuous health monitoring raises serious concerns about the privacy and security of sensitive health information. Data breaches, unauthorized access, and the misuse of personal health information can erode user trust and impede the widespread adoption of wearable devices. More than 809 data breaches occurred in the US healthcare sector in 2023. In addition, 87 million patients in the United States had their confidential health information compromised in 2023, more than doubling the number of breaches in 2022. 

In late October 2023, Welltok, a healthcare Software as a Service (SaaS) provider, announced that its MOVEit Transfer server had been compromised on July 26, 2023. The breach exposed the personal information of approximately 8.5 million US patients. Similarly, Zoll Medical reported a data breach in March 2023, allowing access to personal information on more than 1 million patients who use the LifeVest wearable cardioverter defibrillator device. 

The growing digitization of healthcare and the proliferation of connected devices have attracted cyber criminals. As of July 25, 2023, the average cost of a healthcare data breach was nearly USD 11 million, up 8% from 2022 and 53% since 2020. Cybersecurity breaches can result in financial losses, reputational damage, and compromised patient confidentiality.

Global Wearable Healthcare Devices Market Opportunity

Integration of Artificial Intelligence and Machine Learning

Incorporating AI and ML technologies into wearable healthcare devices creates numerous opportunities for enhancing their capabilities, providing users with personalized insights, and advancing the field of predictive healthcare analytics. Wearables with AI algorithms can analyze various datasets, including physiological parameters, activity patterns, and genetic information. For example, an AI-enabled wearable device can analyze heart rate variability, sleep patterns, and physical activity to provide personalized health information. This can include suggestions for improving sleep, identifying stressors, and developing personalized fitness routines based on individual health goals.

According to Statista, the artificial intelligence (AI) healthcare market, worth USD 11 billion in 2021, is expected to grow to USD 187 billion by 2030. Further, The Centers for Disease Control and Prevention report that 10% of the US population has diabetes. Patients can now use wearable and other monitoring devices to give themselves and their medical team feedback on their glucose levels. AI can assist providers in gathering, storing, and analyzing information from large numbers of people and provide data-driven insights. This data can help healthcare professionals determine how to treat and manage diseases better.

Regional Analysis

The global wearable healthcare devices market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant global wearable healthcare devices market shareholder and is estimated to grow at a CAGR of 8.8% over the forecast period.  North America held a considerable market share. Reimbursement policies, high per capita expenditure on advanced technologies, market players' continuous focus on launching ground-breaking wearable devices in the United States and Canada, government boosts, and state investments are all responsible for this region's dominant position. For example, total health spending in Canada is expected to reach USD 344 billion by 2023, or USD 8,740 per Canadian. Health expenditures are expected to account for 12.1% of Canada's GDP in 2023. Total health spending in Canada is expected to rise by 2.8% in 2023, following a 1.5% increase in 2022. This will further boost the regional market.

Furthermore, rising partnerships for the distribution of wearable medical devices in the United States are expected to drive market growth in this region as adoption increases. For example, in April 2022, Medtronic plc formed a strategic partnership with BioIntelliSense to distribute the BioButton multiparameter wearable for continuous, connected monitoring exclusively in the United States hospital and 30-day post-acute hospital-to-home markets. The FDA's approval of wearable devices is expected to accelerate market growth as market players develop innovative devices. For example, in June 2022, the FDA approved Medicalgorithmics' ECG wearable device, Qpatch. This ECG wearable device measures individual ECG signals and provides accurate cardiac arrhythmia diagnoses from monitoring sessions lasting up to 15 days. 

Europe is anticipated to exhibit a CAGR of 9.0% over the forecast period. Europe is expected to be the second-largest market in terms of revenue. It is attributed to a large pool of patients suffering from chronic diseases, as well as an aging population, rising disposable income, and an increase in investments and grants. In 2022, 21.1% of the European Union (EU) population was 65 or older, with a median age of 44.4 years on January 1, 2022. This means half of the EU's population is over 44.4 years old. These factors contribute to the adoption of wearable devices in this region. 

Additionally, the European Commission's 2022 report shows that 36.1% of EU citizens reported having a chronic health condition in 2022. The report also states that by 2050, approximately 30% of the EU's population will be 65 or older, up from 21% in 2022. According to the World Health Organization (WHO), 58% of Germany's population aged 65 and up suffered from chronic diseases in 2018.

The Asia-Pacific market is expected to grow at the fastest CAGR due to the increasing focus of governments and non-governmental organizations (NGOs) on reducing patient hospital stays in emerging countries such as China, Japan, and India. Furthermore, in 2023, Japan had the largest market share in Asia Pacific for remote patient monitoring devices. It is expected to maintain its dominance during the forecast period, owing to rapid technological advancements and an increasing demand for home care devices and round-the-clock monitoring. Japanese companies highly value health, skincare, and other human consumables.

In addition, as part of China's digital healthcare revolution, manufacturers of home medical equipment, wearable devices, and smart pharmaceutical dispensers prioritize elderly care and chronic illness management. Chronic illness health insurance relies on strategic partnerships between insurers and pharmaceutical companies to collect and analyze patient data, medications, and disease management. Thus, these factors are expected to drive market growth in Asia Pacific.

Latin America, the Middle East and Africa account for a lower market share because they are large and untapped markets. However, improvements in healthcare spending and increased adoption of advanced wearable medical devices in Latin America, the Middle East, and Africa are expected to propel this market forward.

Segmental Analysis

The global wearable healthcare devices market is segmented based on device type, product type, application, grade type, and distribution channel.

The market is further segmented by device type into Diagnostic Devices, Therapeutic Devices, Multiparameter Trackers, heart rate Monitors, Blood Pressure Monitors, Pulse Oximeters, Wrist Actigraphy, Polysomnography Devices, and Traditional Diagnostic Tests.

Diagnostic Devices account for the largest share of the market. The diagnostic device segment dominated in 2023 due to the rising prevalence of chronic diseases, increased disposable income among the young population, and new product launches by market players. Diagnostic wearable devices are intended to monitor and assess specific health parameters, giving users and healthcare professionals valuable information for early detection and diagnosis of medical conditions. These devices frequently use sensors and technologies to measure physiological indicators such as heart rate, temperature, and activity levels, allowing for proactive health monitoring.

Therapeutic wearable devices are designed to provide medical interventions or treatments directly to the user. Examples include wearable insulin pumps for diabetes management and transcutaneous electrical nerve stimulation (TENS) devices for pain relief. These devices are intended to provide targeted therapeutic benefits while maintaining the convenience of wearable technology.

Based on product type, the market is fragmented into Activity Monitors/Trackers, Smartwatches, Smart Clothing, Hearables, Trackers, and Paths.

Smartwatches generate the highest revenue share. The smartwatch segment experienced the fastest growth with the highest CAGR, partly fueled by new consumers entering the marketplace. It will continue in the coming years thanks to new processor technologies. Smartwatches are versatile wearable devices that can do more than track your Fitness. They typically have a digital display and provide a variety of functionalities such as fitness tracking, heart rate monitoring, smartphone notifications, and third-party application integration. Smartwatches are multifunctional devices that combine fitness features with smartwatch capabilities to increase connectivity.

Wearable devices called activity monitors or trackers are designed to monitor and track physical activity metrics like steps taken, distance traveled, and calories burned. These devices, which include sensors such as accelerometers, provide real-time feedback on daily activities, encouraging users to stay active. They are popular with fitness enthusiasts and those looking to improve their health.

The market can be bifurcated by application into Sports and Fitness, Remote Patient Monitoring, Home Healthcare, and General Health and Fitness.

Sports and Fitness are the most common applications in the market. Wearable devices in the sports and fitness application segment are designed to appeal to athletes, fitness enthusiasts, and people who participate in physical activities. These wearables monitor and analyze performance metrics like distance traveled, calories burned, heart rate during exercise, and sports-specific data. They frequently provide real-time feedback to help improve training routines and overall athletic performance.

Wearable devices in remote patient monitoring play an essential role in healthcare because they allow continuous patient health monitoring outside traditional medical settings. These devices can remotely monitor vital signs, chronic conditions, and postoperative recovery. They provide real-time data to healthcare professionals, enabling timely interventions and reducing the need for frequent hospital visits.

The market is sub-segmented into Consumer and clinical Grades based on grade type.

Consumer grade influenced the market growth. The consumer-grade segment dominated the grade type of wearable healthcare devices market. Consumer-grade wearable devices are intended for personal use and are readily available for purchase by consumers. These wearables frequently give users insights into their daily activities, fitness levels, and overall health. They are simple to use, accessible, and designed for many people interested in self-monitoring and lifestyle tracking. Consumer-grade wearables may include fitness trackers, smartwatches, and other devices that prioritize usability and cost-effectiveness.

Clinical-grade wearables must meet higher accuracy, reliability, and data precision levels. These devices are intended for use in clinical settings and healthcare facilities. Clinical-grade wearables frequently undergo rigorous testing and validation processes to ensure they are suitable for monitoring patients' health conditions with medical accuracy. Remote patient monitoring, clinical trials, and healthcare research rely heavily on wearable technology.

The market is classified by Distribution Channel into Pharmacies, e-Commerce, and Hypermarkets.

E-commerce occupies the maximum share of the market. The e-commerce distribution channel includes selling wearable devices via online platforms and digital marketplaces. Consumers can browse, compare, and buy various wearables on e-commerce sites. This channel provides the benefits of a large selection, user reviews, and the convenience of doorstep delivery. Online retailers frequently display wearables with detailed product information to help customers make informed decisions.

Wearables are distributed through hypermarkets and large retail stores that sell various products, such as electronics and health-related items. Wearable devices are available in hypermarkets' electronics and health and wellness sections. The ability to physically examine wearables before making a purchase decision is one of the benefits of shopping at hypermarkets.

Impact of covid-19

Many countries are suffering due to the pandemic; its adverse effects on businesses, individuals, governments, and preventive measures, have significantly affected financial markets, broader economies, and the overall demand for market products.

However, COVID-19 has accelerated health and fitness app adoption into traditional healthcare by integrating wearable technology. The forced lockdowns and remote work has increased awareness of personal health and wellness, and wearable healthcare devices are helping consumers take precautions to prevent infection.

Recent Developments

• January 2024- Apple introduced changes to iOS, Safari, and the App Store in the European Union.
• September 2023- Xiaomi Introduced New AIoT Line-up for International Users
• November 2023- DuPont and STMicroelectronics (ST) collaborated to develop a new bright wearable device concept for monitoring biosignals.