Smart Wearable Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Smart Wearable Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The shipment volume of smart wearables globally stood at 266.3 million units in 2020, and it is projected to reach 776.23 million units by 2026, registering a CAGR of 19.48% during the period of 2021-2026. Advancements in research have been leading to increased innovation in recent years and have been instrumental in driving the demand for the wearable market and led to new product categories like smart fabrics and hearables, among others which incorporate high-end technology and design in daily living. Lately, the focus has been on providing an aesthetic design to devices to attract customers.

Key Highlights

• Wearable technology, an emerging trend, integrates electronics into daily activities and addresses the changing lifestyles with the ability to be worn on any part of the body. Factors such as the ability to connect to the internet and provide data exchange options between a network and a device are leading to the trend of wearable technology.
• Wearables have gained significant traction, owing to the boom in the fitness trend across consumers. According to Cisco Systems, the number of connected wearable devices is expected to increase from 593 million in 2018 to 1,105 million in 2022. The smartwatch category is experiencing a rise, owing to additional features, like the brand that suits the everyday lifestyle. Strong brands, such as Apple and Fossil, are keeping the pricing consistent with the price bands of traditional watches to maintain their revenues. With Google’s WearOS, many other premium watchmakers, such as TAG and Armani, have entered the segment.
• Hearables are gaining traction with the increasing acceptance of smart assistants. Companies like Bragi, Google, Apple, Jabra, Samsung, and Sony have been actively contributing to the growth of this segment.
• The COVID-19 outbreak and the lockdown restrictions across the world have affected industrial activities across the world. The electronics industry is hit severely with a significant influence on its supply chain and production facilities. The production came to stand still in China and Taiwan during February and March, which influenced various OEMs across the world.

Smart Wearable Market TrendsIncremental Technological Advancements Aiding the Market Growth

• Owing to the increasing penetration rates of urbanization, the demand for aesthetically appealing advanced featured products with the ability to better serve the consumers’ daily requirements, such as time schedules, has driven the market for smartwatches globally.
• Moreover, the huge millennial population has been adopting smartwatches, owing to the increased spending for their regular work hours tracking and luxury standards. According to the International Council of Shopping Centers (ICSC), millennial expenditure is expected to increase across various major economies.
• In addition, the use of fiber optic sensors (FOSs) has been widely accepted as a substitute for traditional sensors in smart fabrics/clothing. The reason being their small size and better metrological properties. Although the same may not be the case, companies like Lucyd are focusing on the ergonomics aspect in head-mounted displays. By reducing the size and weight, companies expect to increase the applications of head-mounted displays across industries.

Asia Pacific to Witness the Fastest Growth Rate

• The Asia Pacific region is expected to witness the highest growth in the smart wearable market during the forecast period. The growing electronics industry and a rapid rise in disposable income in the region are driving the smart wearable market.
• In China, the wearables market has taken on a different shape fuelled partly by the purchases of growing affluent consumers. For instance, a recent report by a government think tank in China stated that approximately 80% of the smart wearable devices in the world are manufactured in the southeastern Chinese port city and manufacturing hub. According to the China Center for Information Industry Development report, Shenzhen, the base camp of many Chinese tech giants, is the biggest R&D (research and development) and production center for smart wearables.
• Moreover, increasing awareness regarding fitness, technological advancements, and the availability of high-speed Internet connectivity are the major factors propelling smart wearable market growth in the country.

Smart Wearable Market Competitive Analysis

The smart wearable market is highly competitive. The market has gained a competitive edge in recent years. Additionally, the players are being taken to gain a competitive edge in this fast-growing market, mainly catering to the demand from the millennial generation population.

• April 2021 – Fitbit announced its wellness and fashion-forward fitness tracker called Fitbit Luxe. This tracker will help to take a more holistic approach to wellness and health. Some of the features of this tracker are sleek design, five days of battery, color touchscreen, and a wide range of stylish accessories.
• September 2020 - Apple Inc. launched seven next-gen touchscreen smartwatches under its six brands for the tech-savvy millennials in India. The seven smartwatches are Fossil Gen 4 Smartwatch Venture HR and Explorist HR for Fossil, Skagen Falster 2 for Skagen, Michael Kors Access Runway for Michael Kors, Emporio Armani Connected for Emporio Armani, A|X Armani Exchange Connected for Armani Exchange, and Diesel Full Guard for Diesel.

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• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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