The global wearable technology market is valued at US$113.2 billion in 2021 and US$283.01 billion in 2027, growing at a CAGR of 16.50% during the forecast period 2021-2027, according to the new findings of the Market Statsville Group (MSG).
Wearable Technology Gadgets are electronic devices or technological devices that can be worn on the body as accessories or as part of clothing. The wearable gadgets connect via sensors.
The key contributors to the wearable technology market are the increasing popularity of smartphones, cellular networks, mobile applications, computers, broadband connectivity and others, according to the researchers.
Industry dynamics, including IoT and consumer preferences
The Internet of Things (IoT) describes the phenomenon in which not only computers are connected, but all kinds of devices with embedded computing power. These include self-driving cars, drones, smart sensors connected to homes, and wearable devices.
IoT technologies offer consumers a range of new devices and service options that make life and work easier. This is particularly relevant to the subset of wearables known as IoT technologies.
IoT also plays an important role in a variety of healthcare applications, from chronic disease management to disease prevention. The availability of devices such as smartphones, tablets and phablets, among others, is huge.
Consumers currently prefer a single compact device that could integrate all computing and monitoring needs. This preference offers the opportunity to develop multifunctional and hybrid wearable devices that offer users 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 shift from the Plain Old Telephone System (POTS) to cellular gateways and cellular phones, cellular technologies have become a leading medium for data transmission and communications, the researchers said.
This factor should provide a good opportunity for companies to launch wearables connected to mobile devices such as smartphones and tablets. The consumer electronics industry is a rapidly changing market.
However, market participants are threatened with a steep drop in prices, because when new technology is developed, products with old technology lose their importance, according to MSG.
Wearable technology and various market segments
Wearable technology has proven useful in the fight against COVID-19. Many wearables manufacturers have started adapting their products to detect early signs of COVID-19. Some have also developed algorithms to measure cough and respiratory activity in general.
This can provide healthcare professionals with useful data on changes in a patient’s condition and allows for remote monitoring of less severely affected patients, relieving pressure on hospitals.
The impact of the virus on leading companies, the expected demand schedule, the supply chain of the industry and other important factors have all impacted the wearable technology market.
MSG defines the market by product, technology, component and application:
- Products: wristwatches, glasses, neckwear, wearable cameras and others
- Technology: Computing display and networking of sensors
- Component: Controller, memory, battery, sensors and connectivity
- Application: fitness and wellness, consumer electronics, healthcare and others
Market insights by geography
From a geographic perspective, the wearable technology industry is segmented into North America, Asia Pacific, Europe, South America and Middle East and Africa (MEA).
In 2020, North America accounted for the largest share of the total market due to the huge demand in the United States for wearable technology products and the widespread awareness of wearable technology. The US holds the largest market share in North America and is a significant market. It was observed that North America would dominate the market due to factors such as greater health concerns and product usage awareness.
The wearable technology industry is growing steadily and significantly in Europe. However, the wearable technology market in Asia-Pacific is expected to show positive growth during the forecast period owing to factors such as rising tech-savvy population and growing awareness.
There is high smartphone penetration and increased internet mobility in Asia-Pacific countries like China, India and others, hence the report shows that these countries would see a sudden surge in wearable technology market during the forecast period.