Wearable Technology Market Size, Share & Trends Analysis Report By Product (Wrist-Wear, Eye-Wear & Head-Wear, Foot-Wear, Neck-Wear, Body-wear), By Application, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global wearable technology market size was valued at USD 40.65 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 13.8% from 2021 to 2028. The rising popularity of connected devices and the Internet of Things (IoT) and the rapid growth of the technologically literate population globally are anticipated to fuel the demand for wearable technology over the forecast timeframe. Furthermore, the rising prevalence of chronic diseases and obesity has contributed to the adoption of wearable products such as activity trackers and body monitors that provide real-time information on the user’s overall wellbeing. These wearable devices also offer information related to day-to-day events and physiological data such as quality of sleep, heart rate, blood oxygen level, blood pressure, cholesterol level, and calories burnt.

In the first half of 2020, the COVID-19 pandemic dealt a blow to the growth prospects of the market. Manufacturing units were temporarily shut down due to the lockdown restrictions imposed by various governments globally. However, increasing health awareness among individuals supported market growth in the latter half of 2020; the trend is expected to remain strong during the forecast timeframe as well. The pandemic has made wearable technologies and devices a more prominent part of today’s healthcare industry.

Additionally, the rising popularity of these devices among recreational fitness enthusiasts and professional athletes is anticipated to drive the demand for wellness and fitness products during the forecast timeframe. The market is also expected to benefit from growing awareness about the benefits of wearable electronics, an increase in smartphone penetration, and rising disposable incomes. R& D initiatives of several market players are likely to further contribute to the escalating growth prospects of the market. However, factors such as data privacy concerns, high initial cost, and low battery life could also pose a threat to market growth prospects during the forecast period.

The promising growth observed by the gaming segment is expected to support market growth over the forecast period. Gaming console manufacturers, including Microsoft and Nintendo, have recognized the potential of Augmented Reality (AR) in games and are introducing products featuring the technology. For instance, the game Human Pac-Man involves the use of specialized goggles and allows players to hunt other players in real life resembling characters from the game. An increase in the number of games using AR and Virtual Reality (VR) features is expected to drive the demand for specialized devices such as headsets, thereby supporting the market growth.

Product Insights

Based on product, the market is categorized into neck-wear, foot-wear, wrist-wear, body-wear, eye-wear, and head-wear, and others. The wrist-wear segment dominated the market in 2020 and accounted for more than 48.9% market share. A fitness wristwatch or band can be paired with a mobile application to offer key fitness-related information and statistics to the user. Some of the leading wrist-wear manufacturers for sports and fitness applications are GOQii, Apple, Xiaomi, Fitbit, and Nike. In the first half of 2020, the watches and wristbands segment suffered a setback as leading manufacturing companies in China struggled with a labor shortage and limited availability of raw materials. As manufacturing units began operations, the market witnessed a mild recovery during the second half of 2020.

The increasing adoption of smartwatches and fitness trackers in the healthcare industry is expected to support the segment growth over the forecast period. Smartwatches that are integrated with disease-specific functions, especially the ones that provide cardiovascular indications, have witnessed a significant rise in adoption over the years. For instance, Apple Inc.’s smartwatches, which are equipped with electrical heart sensors to detect abnormal heart rhythms, have witnessed an extensive increase in demand over the years.

The eye-wear and head-wear product segment is anticipated to expand at a CAGR of 14.2% from 2021 to 2028. Eye-wear products mainly comprise goggles such as Microsoft HoloLens, VISR Goggles, and Google Glass. Head-mounted display devices are anticipated to witness significant growth over the forecast timeframe. Furthermore, advancements in augmented reality (AR) and virtual reality (VR) are gaining significant attraction in the healthcare segment. VR technology and VR headsets are used in medical practice to assist surgical trainings and procedures. This assists them in reducing the chances of errors while performing surgery.

Application Insights

Based on application, the market is segmented into healthcare, enterprise, and industrial application, consumer electronics, and others. The consumer electronics application segment accounted for more than 48.4% of global revenue in 2020. Consumer electronics have numerous applications, including fitness and sports, garments and fashion, multifunction, infotainment and multimedia, and others. Considering the growing demand for wearable consumer electronics from consumers, industry players are focused on developing devices that can keep end-users work hour tracking. Furthermore, growing machine-to-machine communication and the rise in connected devices are expected to support the growth of wearable consumer electronics, thereby supporting the market growth.

The rapid increase in the adoption of wearable devices and health apps, coupled with improvement in technology, has increased the scope of monitoring health remotely, thereby allowing for better communication among patients and doctors. Furthermore, the increasing need for health monitoring owing to the surge in health awareness among individuals is expected to fuel the demand for healthcare applications over the forecast timeframe. Several new wearable medical devices comprise features such as portable, wearable dialysis devices, AI-enabled wearable devices, and sweat-sensors, which are used to inform athletes of water and electrolyte loss. Integration of these advanced features in wearable devices will contribute significantly to the wearable technology market growth during the forecast period.

Regional Insights

North America dominated in 2020 and accounted for over 34.7% of global revenue. The region houses a large population of internet users and several companies associated with technological innovations, such as Alphabet; Garmin Ltd.; and Apple Inc. Furthermore, various industry players are taking initiatives to expand their geographic presence and enhance their business operations. For instance, in May 2017, Xiaomi Corporation announced its expansion in the North American market. This is expected to support the market for wearable technology during the forecast period.

Furthermore, the Asia Pacific market for wearable technology is anticipated to witness promising growth due to increasing purchasing power, the growing population of tech-savvy people, and the presence of several leading market players in the region. Several industry players are also foreseen to shift their manufacturing services to the Asia Pacific due to low operation and labor costs. In addition, the increasing urban population in the region is expected to contribute to the adoption of wearable devices, thereby propelling market growth.

Key Companies & Market Share Insights

The prominent players in the global market include Xiaomi; Alphabet; Apple Inc.; and Huawei Device Co., Ltd. These players focus on acquisitions and collaborations to enhance their presence and gain a competitive edge in the market. Market players in this sector are emphasizing collaborations and acquisitions for technology development. For instance, in November 2019, Fitbit was acquired by Alphabet for USD 2.1 billion.

Key market players are also emphasizing undertaking various strategic initiatives, including joint ventures, new product launches, partnerships, and contracts and agreements, to enhance their positions in the market. For instance, In August 2019, Fitbit Inc. introduced a new smartwatch, Versa 2. It is a premium device equipped with advanced fitness, payment, and health features. Some of the prominent players operating in the global wearable technology market are:

• Apple Inc.

• FitBit Inc.

• Sony Group Corporation

• Garmin Ltd.

• Samsung Electronics Co. Ltd.

Wearable Technology Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the global wearable technology market report based on product, application, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2028)

  • Wrist-Wear

  • Eye-Wear & Head-Wear

  • Foot-Wear

  • Neck-Wear

  • Body-Wear

  • Others

• Application Outlook (Revenue, USD Million, 2018 - 2028)

  • Consumer Electronics

  • Healthcare

  • Enterprise & Industrial Application

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa