Australia Wearables Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Australia Wearables Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The wearable market in Australia is expected to register a CAGR of 14.5% during the forecast period from 2021 - 2026. Smart wearables offer a multitude of features, which include fitness tracking, managing daily tasks, checking emails and making contactless payments, etc. Hence the change of consumer lifestyle and rising awareness of advanced technology will influence the growth of this market.

Key Highlights

• The Australian wearable market is multiplying due to the faster adoption of advanced technologies into wearable objects such as eyewear, wristband, and watch. These technologically advanced products are used in military, health, and wellness, the fitness of general people. For instance, in 2020, Bragi and Cotron collaborated to provide end-to-end wearables audio solution for its customers.
• Moreover, the rising awareness about health consciousness among Australian people is fuelling the growth of this market. The ongoing COVID-19 crisis has expanded the role of wearable technologies in the healthcare sector. These wearable products can offer different types of information, which include blood pressure, oxygen levels, quality and quantity of sleep, calorie intake, cholesterol levels, etc. According to the Digital Report 2020, 21% smartwatch, and 3.2% virtual reality device users are using the internet for their device connections., However, data piracy threats are restraining the growth of this market.
• Furthermore, researchers and technology companies in Australia are focusing on Covid-19 contact tracing with the use of wearables. Key vendors in this market are also focusing on this opportunity to grab the market potential during this unprecedented time. For instance, Australian scale-up RightCrowd recently announced Right Crowd HQ to create awareness among company staffs and to monitor all close contact events that take place and store that data.
• In 2020, Fitbit Inc launched Fitbit Charge 4, which advanced sensors and built-in GPS and Spotify, Connect, and Control. This product will not only deliver essential health and fitness information but also supports seven days of battery life.
• However, the high cost of manufacturing and the shorter lifecycle of these electronics products poses a significant threat to this market. Additionally, the manufacturer of these wearable devices has to spend a lot of money on research and development, marketing, the promotion, which incurred a huge cost for its manufacturer. Hence this high cost and rapidly changing technological environment can influence the growth of this market.

Key Market TrendsHead-Mounted Display will Drive the Growth of this Market

• The factors that support the penetration of head-mounted display in the consumer market are a result of declining prices of components such as microdisplays in the Australian market. These microdisplays are an essential component for both helmet-mounted displays and eyewear displays. Moreover, lightweights wearable technology has led to rapid innovation for these products. Virtual prototyping provides a significant opportunity for car manufacturers where users can use this technology by evaluating accurate positions of different components and communicating different customization to the designers.
• According to the E-safety research of the Australian Government that 60% of the Australian population are gamers. The increasing demand for games is supporting the growth of head-mounted displays in this region. Moreover, most of these head-mounted displays are highly suitable for playing in the console. Hence, the rapid increase of console and PC gamers is fulling the growth of this market.
• Immersive HMDs are primarily used to experience augmented reality (AR) and virtual reality (VR). Mainstream consumer use has been limited due to cost, availability, ergonomics, unfashionable design, and other factors. Moreover, an increase in population size, especially younger generations with a rise in the number of computer gamers and interest in VR-enabled gaming, is expected to create demand for head wearables in the country.
• Furthermore, HMDs are used rapidly in the defense sector. Advanced Military HMDs are used in ground-based applications (simulator, combat vehicle, and soldier applications) and airborne (rotary and fixed-wing). According to the Austrian government budget(2019-20), the defense budget is equivalent to 1.9% of the GDP for this country. Hence this increasing defense expenditure can create a huge market opportunity of HMDs in the military and defense sector of this country.

The Growing number of Adult Population will drive this Market

• The growing adult population is driving the growth of this wearable markets. According to the Digital Australia 2020 report, the total population in Australia is 25.35million, and out of those 19.6 million people are 18 and above. This increasing young population and rising awareness of health among the young generation is fuelling the growth of this market.
• Moreover, the growing GDP and rapidly increasing urbanized population are creating a substantial market opportunity for the smartwatch, HMD, fitness trackers, and other wearables. According to the Australian Bureau of Statistics, 86.1% of the total population is urban population, and this will increase by 1.43% in future years.
• There have been several advancements for adults in healthcare sectors, such as introducing hearables, or wireless computing earpieces, and brainwave-reading technology. For instance, Continuous glucose monitors (CGMs) are becoming increasingly popular with diabetic patients, who can wear the devices all the time to monitor their glucose levels.
• Major vendors in this market are continuously innovating to create a unique differentiation from its other competitors. For instance, in 2019, Samsung launched Galaxy Watch Active 2, which can provide improved heart rate and an accelerometer. According to the company, this product will help adults who are suffering from heart and sugar-related diseases.

Competitive Landscape

The major vendors in this market are holding 60 to 70% of the market share. Hence the market concentration for this market is high. Moreover, market players are moving towards providing technologically integrated products through the massive investment in their research and development section, which have enabled them to gain a competitive advantage over the other competitors in this market.

• June 2020: Apple previewed watchOS 7, that delivers enhanced customization tools and robust new health and fitness features to the advanced smartwatch. This new watchOS7 can provide sleep tracking, automatic handwashing detection, and new workout types, which can help its users to remain healthy, active, and connected.
• January 2020: Nuheara Limited launched a new IQbuds2 MAX wireless earbud, which has a hybrid Active Noise Cancellation, Nuheara’s EarID technology, and Speech in Noise Control (SINC). Hence these innovative features provide the users to customize and control their hearing experiences.

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• The market estimate (ME) sheet in Excel format
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