Wearable Technology Market

Market Overview

The global Wearable Technology Market size was valued at USD 60.85 billion in 2022. It is estimated to reach USD 190.21 billion by 2031, growing at a CAGR of 13.5% during the forecast period (2023–2031). The factors driving the wearable technology market growth during the projected period include increasing growth prospects of next-generation displays in wearable devices, increasing demand for IoT devices, and growing need for smart devices in healthcare applications.

Wearable technology, often known as wearables, is a type of electronic gadget and accessory that may be worn on the body. These gadgets are intended to collect data, offer information, and improve the user experience in various categories, such as health and fitness, communication, entertainment, and productivity. Wearable technology has grown in popularity in recent years due to its potential to provide convenience and functionality in a small, portable package.

Consumer adoption of smart wearable technology items is propelling industry growth. These gadgets aid in health monitoring by using sensors to check cholesterol levels, calories burned, oxygen levels, etc. In addition, Fitbit, Samsung, Noise, and Fossil Group, Inc. are introducing wearable technology watches and other accessories with health-tracking solutions. Such a feature is expected to appeal to customers because it allows them to monitor their health, paving the door for a significant wearable technology market share.

Market Dynamics

Global Wearable Technology Market Drivers:

Health and Fitness Awareness

Wearable technology has benefited greatly from increased awareness of personal health and wellness. Wearables have evolved into valuable tools for individuals seeking to monitor their health, measure their fitness progress, and play a more active role in their well-being. According to an IDC analysis, the wearables market is expected to increase significantly in 2020, led by the desire for health and fitness tracking during the COVID-19 pandemic. In 2020, the market rose by 27.2% yearly, with shipments totaling 153.5 million units. This expansion was ascribed to a greater emphasis on health and wellness.

In addition, wearables have evolved from recording fitness metrics to giving useful health data. Users can receive early alerts about potential health risks, allowing them to take precautionary measures and seek medical care as soon as possible. According to a 2019 study published in JAMA Cardiology, the Apple Watch's capacity to detect irregular cardiac rhythms showed promise in detecting atrial fibrillation, which can lead to strokes and other issues. The study emphasized the value of wearable technology in preventative healthcare. The growing awareness of health and fitness and the increased emphasis on preventative healthcare have influenced the wearable technology market trend. These gadgets have evolved to offer users useful health data, tailored insights, and the capacity to be proactive about their health.

Global Wearable Technology Market Restraints:

Privacy and Security Concerns

Wearables' personal health and biometric data collection has prompted privacy and security issues. Users are concerned about how manufacturers and third parties store, transfer, and use their data. According to a PwC survey, 88% of consumers are concerned about the security of wearable data, while 87% are concerned about data privacy. These concerns have resulted in regulatory measures such as Europe's General Data Protection Regulation (GDPR), which addresses data privacy concerns. 

Furthermore, wearables that capture sensitive health data, such as heart rate and sleep habits, have been investigated for data security. Health data breaches have occurred, raising worries about the security of personal health information. In the United States, the Health Insurance Portability and Accountability Act (HIPAA) and equivalent rules worldwide mandate strong data protection for health-related information. This emphasizes the significance of privacy in the wearable health tech sector. Manufacturers must invest in safe designs, transparent data policies, and user education to alleviate these worries and demonstrate their dedication to user privacy and data protection.

Global Wearable Technology Market Opportunity:

Integration of Augmented Reality and Virtual Reality

AR smart glasses are becoming more popular in the industrial and manufacturing sectors. Workers may access real-time information, schematics, and instructions while keeping their hands free by wearing these devices. In the aviation business, for example, technicians can utilize AR glasses to see maintenance instructions and conduct repairs more efficiently. In addition, the game sector is seeing increased demand for VR headsets. VR is utilized in gaming arcades, home gaming consoles, and virtual reality theme parks to create immersive gaming experiences. Popular products include the Oculus Rift and PlayStation VR.

Furthermore, VR headsets allow users to experience virtual travel locations, museums, and historical places without leaving their homes. This has grown in popularity, particularly during travel restrictions and lockdowns. The epidemic of COVID-19 heightened interest in virtual tourism. Virtual tours of prominent landmarks and travel locations were available from companies such as Oculus. Such initiatives' success demonstrates virtual reality's potential in the tourism and exploration sectors.

Regional Analysis

North America Dominates the Global Market

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

North America is the most significant global Wearable Technology market shareholder and is estimated to grow at a CAGR of 4% over the forecast period. High technological usage and the ease with which freshly released things can be obtained have been significant growth factors for the regional market. Devices that improve health, ease preventive treatment, and aid in managing chronic illnesses are in high demand in the region. Wearable medical technology is used by 30% of Americans, according to the National Library of Medicine. 

In addition, the increased spending of numerous sports associations to reduce the potential of any preventable accidents to highly paid professional athletes is predicted to propel the region's wearables growth. For example, the Golden State Warriors are working with smart apparel startup Athos to employ these goods for injury prevention and player performance. This investment represents only a small portion of the athletics sector's involvement in the smart clothes business landscape in the United States. Aside from the United States, Canada is seeing increased demand for wearables. The country is expected to spend and pay adequately for its military initiatives (including clothes). Bell holds several patents in the United States and Canada that outline a complete vision for how its wearable technology could be utilized by people trying to monitor sick loved ones and institutions looking to track big populations.

The Asia-Pacific region is expected to increase fastest during the projected period. Due to increased suppliers offering competitive products, China will likely be one of the most important countries in the Asia-Pacific regional market. The decreased costs of smartphones, predicted to fall further shortly, are also expected to stimulate demand for wearable technology in the country. Increased demand from diverse target client groups allows manufacturers to lower product prices while boosting production volumes.

The European market is expected to rise significantly during the forecast period. Because the region has a large aging population, there is a growing interest in wearable gadgets that can help with aged care, remote patient monitoring, fall detection, and other healthcare applications. European governments have aggressively supported digital health projects, such as wearable technology, to enhance healthcare outcomes and lower healthcare costs.

Segmental Analysis

The global wearable technology market is segmented based on product, application, and region.

The global wearable technology market is further segmented by Product into Wristwear, Eyewear and headwear, Footwear, Neckwear, and Bodywear.

Wrist-wear holds the major market share.

Wrist-Wear

Wrist-wear devices, like traditional timepieces, are intended to be worn on the wrist. Smartwatches and fitness trackers are common examples. Several smartwatch and fitness tracker makers target users such as athletes, adventure seekers, and sports fans to improve product sales. By providing information on calorie intake, hydration intervals, and step monitoring, these gadgets give fitness-related metrics and encourage a healthy lifestyle.

Eyewear and Headwear

Wearables for the eyes and head are devices that are worn on the head or around the eyes. Augmented reality (AR) glasses and virtual reality (VR) headsets are frequently used. The increasing use of Virtual Reality and Augmented Reality (VR and AR) headsets in the multimedia and healthcare industries and the growing popularity of smart headgear are expected to drive the expansion of this market. Furthermore, the growing popularity of smart caps due to their data-driven insights and tracking technologies is expected to drive category growth.

The global wearable technology market can be bifurcated by application into Consumer electronics, healthcare, and enterprise/industrial applications.

Consumer electronics influenced the market growth.

Consumer Electronics

Consumer electronics wearables are largely intended for individual users. These technologies are frequently concerned with lifestyle, entertainment, and personal convenience. The significant share of this sector can be attributed to a growth in the use of wearable technologies, such as fitness bands and AR/VR headsets. Many firms, like Garmin Ltd., Omron, Apple Inc., and Nemaura, focus on developing data-delivery devices that include clinical and non-clinical information.

Healthcare

Healthcare wearables are devices intended to monitor, track, and enhance various aspects of a person's health and well-being. They are frequently employed in preventative medicine and remote patient monitoring.

Recent Developments

• October 2023- Samsung Electronics, a global leader in advanced semiconductor technology, announced its newest developments in analog and logic semiconductor technologies and its roadmap for future technical advancements.
• October 2023- Sony Corporation ("Sony") announced the release of the FP7000 spectral cell sorter, which allows high-speed, high-parameter sorting with more than 44 hues using easy workflows and unique spectral technology-based optics, advanced electronics, and fluidics.
• October 2023- Huawei introduced the F5.5G-Oriented all-optical target network architecture in three stages.
• September 2023- Apple introduced watchOS 10, a landmark update that includes a new visual language for apps to view more information at a glance, a new Smart Stack to reveal relevant widgets when needed, and appealing new watch faces.