Industry Outlook

Wearable devices recorded the sale of 130.8 Mn units in 2017 and projected to witness the double-digit growth of 16.5% from 2018 to 2026. Wearable devices can be defined as clothing or accessories with advanced technologies that includes products such as smart watches, fitness & activity tracker, smart eyewear, smart clothing, medical devices, and others. These devices are designed to wear in daily life routine mostly available with wireless connectivity, processor, and user interface on the device itself or on the paired device. Smart watches was the dominant segment accounting for over 40% of the total shipment in 2017, while fitness & activity trackers projected to remain the most popular and fastest growing segment during the period from 2018 to 2026. Growth in the fitness and activity tracker segment can be attributed to their function of monitoring heart rate and tracking body activity with the ease of usability, portability, and integrating into everyday life. Rising consumer awareness of wearable in key markets such as China, UK, and U.S. coupled with technological advancements in software & hardware components and their adoption in fitness & wellness, healthcare & medical, military & defense, and other sectors augmenting the growth of the wearable devices market. Moreover, increasing penetration of smartphones and their compatibility with wearable devices, growing preference for wireless connectivity among healthcare providers, increasing awareness of fitness & health, and high penetration of IT in end-use industries such as healthcare, military & defense, enterprise & industrial, etc. are some other factors supplementing the growth of wearable devices across the globe. Although, the wearable devices market has positive growth outlook, premium cost of wearable devices, limited battery life, and data security issues are some of the factors expected to hinder the market growth during the forecast period.

North America is the largest market for wearable devices market and expected to dominate global demand over the forecast period owing to technological developments. Whereas, Asia Pacific is projected to exhibit substantial growth due to low production costs in India and China. Since, user friendly technological innovation is the key to success in the wearable devices market, players operating in the market are striving to cater consumer unmet needs such as long battery life, durability, and low cost by consistently introducing new products in the market, making new product development a preferred strategy of wearable devices manufacturers.

Demand for Smart Watches from Infotainment and Fitness & Wellness Industry, Making it the Leading Segment

Smart Watches is the leading product type segment during 2017-2018. The segment is also projected to witness the robust growth during the forecast period owing to increasing demand from infotainment and fitness & wellness end-use industries. Smart Watches accounted for over 40% of total wearable devices sale across the world in 2017. Smart Watches are equipped with various camera, accelerometer, thermometer, compass, maps, calculator, picture gallery, music player, SD card, rechargeable battery, speaker, and various others user friendly features. The advent of Apple Inc. into Smart Watches segment disrupted the market in terms of value and volume both.

Fitness & Activity Tracker and Medical Devices product type also projected to witness high growth during the forecast period on account of rising health awareness among consumers and rising prevalence of lifestyle diseases such as hypertension, obesity, and diabetes, fuelling demand for continuous monitoring of various physiological factors that includes calorie intake, blood sugar levels, and blood pressure. Moreover, increasing penetration of smartphones and smartphone linked healthcare applications coupled with growth of remote patient monitoring are few other factors propelling the growth of these segment.

Fitness & Wellness Dominated the End-Use Industry Segment Owing to Rising Lifestyle Diseases Globally

Fitness & Wellness segment represented over 30% of total wearable devices sale in 2017, followed by healthcare & medical and infotainment. Wearable devices used in fitness & wellness industry includes smart watches, smart clothing, smart glasses, sleep sensors, heads-up displays, foot pods & pedometers, fitness & heart rate monitors, activity monitors, and others. Rising average life expectancy, a higher ratio of seniors, and increased prevalence of chronic disease expected to drive the Fitness & Wellness segment in coming years.

Infotainment & Healthcare & Medical and segment closely follows the Fitness & Wellness segment in terms of market value in 2017. Healthcare & Medical segment includes following devices: continuous glucose monitoring, insulin pumps, blood pressure monitors, drug delivery products, defibrillators, patches, smart glasses, hearing aids, and others. Healthcare & Medical devices segment is projected to witness the significant growth during the forecast period.

Online Retailing Projected to Witness Robust Growth during the Forecast Period

Exclusive Stores segment represented the largest share total wearable devices sale in 2017, closely followed by Multi-brand Stores and Online Retailing. Increasing demand for wearable products in retail outlets of developed economies boosting the demand for this segment. With an objective to improve consumers’ experience with the brand, companies aims to boost their market by using exclusive retail outlets These stores not only offers various products but also provides excellent post-sale services. The growth of this segment is attributed to the fact that the consumers in exclusives stores experience more intimate and personalized shopping experience compared to online retailing.

Online retailing is identified as the most popular and fastest growth distribution channel for wearable devices. Online retail mainly includes the various ecommerce stores that displays various products with special offers and price tags wherein the consumers can buy these products with hassle-free payment gateway through cart system. Online platforms enables the consumers to seek the best product according to their convenience without physically visiting the shop to buy these products. Hence convenience factor of consumer and rising penetration of online shopping expected to drive the online retailing segment during the forecast period.

Growing End-use Industries in Developed Economies Projected to Catapult the Market Growth

North America held the largest market share of over 35% in 2017, followed by Europe and Asia-Pacific in terms value and unit shipment. North America’s wearable devices market is mainly driven by huge demand U.S. end-use industries. Factor such as growing prevalence of chronic diseases and obesity, increasing application of remote patient monitoring and home care, aging population, increasing number of professional athletes, and clinical and military research propelling the demand for wearable devices in the region.

Asia-Pacific projected to witness the fastest CAGR during the forecast period. Increased government budgets for healthcare sector, increasing geriatric population base, rising disposable income, and rapid economic growth expected to boost the demand for wearable devices in the region.

Apple Seizes the Leader Position in Wearable Devices Market in the 4th Quarter of 2017

Apple’s is the market leader for smart watches segment owing to surge in smart watch shipment across the globe. Activity and Fitness tracker segment is being dominated by two giants Fitbit and Xiaomi. Product innovation and new product development are among preferred strategy adopted by key players to acquire more share and get an edge over other players in wearable devices market. For instance, Samsung and Huawei launching new wearable devices in the Middle East & Africa region to acquire greater share and strengthen their foothold in the region growing at the CAGR of over 15% annually. Key manufacturers of Wearable Devices market includes Apple, Samsung, LG, Fitbit, MI, Nike, Flex, Sony, Garmin, Huawei, Eurotech, Abbot, and Medtronic among others.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Wearable Devices market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Wearable Devices market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Wearable Devices market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Wearable Devices market?
• Which is the largest regional market for Wearable Devices market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Wearable Devices market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Wearable Devices market worldwide?