Global wearable tech market continues to grow at notable rate
The global wearable technology market is estimated to be US$113.2 billion in 2021 and reach US$283.01 billion in 2027, registering a CAGR of 16.50% during the forecast period, 2021-2027, according to new findings from Market Statsville Group (MSG).
Wearable technology gadgets are electronic gadgets or technology devices that can be worn on the body as an accessory or as a part of clothing. The wearable gadgets connect using sensors.
The major contributors to the wearable technology market are the increasing popularity of smartphones, mobile networks, mobile applications, computing, broadband connectivity, and others, the researchers state.
Industry dynamics, including IoT and consumer preferences
The Internet of Things (IoT) refers to the phenomenon in which not only computers are interconnected but all kinds of devices with an embedded computing capacity. These include self-driving cars, drones, smart sensors connected to homes, and wearable equipment.
IoT technologies offer consumers an array of new devices and service options that facilitate lives and jobs. This is especially relevant to the subset of wearables known as IoT technologies.
IoT also plays an important role in a wide range of healthcare applications, from chronic disease management to disease prevention. The availability of devices such as smartphones, tablets, and phablets is huge, among others.
Consumers currently prefer a single compact device that could integrate all the computing and monitoring requirements. This preference offers an opportunity to develop multi-function and hybrid wearable devices that provide users with convenience and integrate the functionality of many devices into a single compact wearable device.
The number of such devices is expected to increase in the coming years. With a steady transformation from the Plain Old Telephone System (POTS) to cellular gateways and mobile phones, cellular technologies have become a leading medium for data transmission and communication, the researchers state.
This factor is expected to offer companies a good opportunity to launch wearables connected to mobile devices, such as smartphones and tablets. The consumer electronics sector is a fast-changing marketplace.
However, market players face high price erosion because when a new technology is developed, products with old technology lose their significance, MSG states.
Wearable technology and different market segments
Wearable technology has been useful in fighting COVID-19. Many wearables producers have started adapting their products to help detect early COVID-19 signs. Some have also developed algorithms for measuring coughing and respiratory activity in general.
This can provide useful data about changes in a patient's condition for healthcare professionals and allows remote monitoring of less severely affected patients, which reduces the pressure on hospitals.
The virus's impact on leading companies, the expected demand schedule, the industry's supply chain, and other significant factors have all had an impact on the wearable technology market.
MSG defines the market by product, technology, component and application:
- Products: Wristwear, eyewear, neckwear, wearable cameras and others
- Technology: Computing display and networking sensors
- Component: Control, memory, battery, sensing and connectivity
- Application: Fitness and wellness, consumer electronics, healthcare, and others
Market insights by geography
From a geographical viewpoint, the wearable technology industry is segmented into North America, Asia Pacific, Europe, South America, and Middle East & Africa (MEA).
In 2020, North America accounted for the largest share of the overall market due to the enormous demand in the US for wearable technology products and wide awareness for wearable technologies. The US holds the largest market share in the North America, being a prominent market. It has been observed that due to factors such as higher health concerns and awareness of product use, North America would dominate the market.
The wearable technology industry is showing a steady and substantial growth in Europe. Although, the Asia Pacific wearable technology market is expected to show positive growth over the forecast period due to factors such as rising tech-savvy population and growing awareness.
There is high penetration of smartphones and increased internet mobility in Asia-Pacific countries such as China, India, and others, as a result of which the report reveals that these countries would show a sudden hike in the wearable technology market during the forecast period.