Wearable Technology Market 2020 and Forecast 2021-2027

                                          
Report Overview: Wearable Technology Market


The global wearable technology market size was valued at USD 21.52 billion in 2020 and is projected to expand at a compound annual growth rate (CAGR) of 14.8% from 2021 to 2027. The growing popularity of the Internet of Things (IoT) and connected devices and rising technically sound population is expected to generate the demand. Rising concerns of obesity and other chronic diseases have led to the adoption of wearable products such as body monitors and activity trackers, which offer real-time information about the overall health. These wearable products can offer information such as blood pressure, oxygen levels, quality and quantity of sleep, calorie intake, cholesterol levels, heartbeat monitoring, and other information required by the body for day-to-day activities.

In 2020, the COVID-19 pandemic is anticipated to significantly impact the market growth. The outbreak of the COVID-19 crisis has expanded the role of wearable technologies in the healthcare sector. Some players operating in the wearable technology industry across other sectors are eager to enter the landscape of healthcare wearables to be used as prompt warning systems for the virus infection.

Additionally, increasing popularity about the benefit of these devices among professional athletes and recreational fitness consumers is expected to generate the demand for fitness and wellness products over the forecast period 2021-2027. Data privacy concerns may pose a challenge to revenue growth over the next seven years. Low battery life and high initial cost may also hinder the industry over the forecast period.

Moreover, increasing social awareness and various benefits of wearable electronics is anticipated to drive demand over the forecast period. Increasing disposable income and smartphone penetration is expected to increase industry growth in the forthcoming years. A high degree of research and development by the market players is expected to enhance technology over the next seven years. Advancement in sensors and battery life will help industry players to enhance the customer experience.

There is a huge availability of smart devices include tablets, phablets, and smartphones, among others. Presently, end users desire to have a single compact product that could integrate all the monitoring and computing requirements. This preference provides an opportunity for the companies to develop hybrid and multi-function wearables that offer convenience to the end-users and integrates the functionality of various products into a single compact wearable product. The number of such devices is expected to increase over the forecast period.


Product Insights: Wearable Technology Market

The wrist-wear product segment led the wearable technology market and accounted for more than 45.0% revenue share in 2019. By product, the market is segmented into wrist-wear, neck-wear, eye-wear and head-wear, body-wear, foot-wear, and others.

The fitness band can be connected with mobile apps to give the user key fitness-related information with statistics. Some of the players manufacturing wrist-wear for fitness and sports include Xiaomi, GOQii, Nike, and Fitbit. In 2020, wristbands and watches will be significantly impacted in the short term as several companies in China struggle with manufacturing due to component and labor shortage. However, in the second half of the year 2020, it is expected to have a mild recovery as supply limitations gradually begin to disappear, and manufacturing returns to normal.

Moreover, the eye-wear and head-wear product segment is expected to expand at the highest CAGR of 16.9% from 2021 to 2027. Eye-wear products primarily include Google Glass, Microsoft HoloLens, and VISR Goggles. Head-mounted display devices are expected to substantial growth over the forecast period. The mixed-, virtual-, and augmented-reality, digital projections are overlaid to real-life objects. It allows end-users to manipulate their surroundings visually and offer contextual information. While these AR and VR technologies are conceivable through tablets, smartphones, and a host of other mediums, this, in turn, is further expected to drive the market growth.

Application Insights: Wearable Technology Market

The consumer electronics application segment led the market and accounted for more than 45.0% revenue share in 2019. On the basis of application, the market for wearable technology can be segmented into consumer electronics, healthcare, enterprise and industrial application, and others.
The consumer electronics contain various applications such as garments and fashion, fitness and sports, infotainment and multimedia, and multifunction, among others. Considering the increasing demand from millennial consumers, the market players are concentrating on the development of devices that can maintain the luxury standards and also work hour tracking of the user. Moreover, increasing machine-to-machine communication and high growth in connected devices is directly impacting the development of wearable products and other associated technologies.

Improvement in technology and the adoption rate for wearable devices and health apps has increased the scope of remote health-monitoring, allowing for better communication between doctors and patients. Further, increasing need for health monitoring is anticipated to drive healthcare application demand over the forecast period. Few emerging wearable medical devices include AI-enabled wearable devices, wearable, and portable dialysis devices, and wearable sweat-sensor used to inform athletes of electrolyte and water loss. Increasing need to decrease hospital stay, increased prevalence of chronic diseases, and patients needing long term care and higher ratio of seniors is expected to drive healthcare products over the forecast period.

Regional Insights: Wearable Technology Market

North America lead the market and accounted for over 30.0% share in terms of revenue in 2019. This region is recognized as the hub for major technological advancements across the globe. Moreover, the region has a strong presence of key players, such as Garmin Ltd., Alphabet, and Apple Inc., among others.
Asia Pacific is expected to be the most attractive regional market for wearable technology due to the growing purchasing power with the increasing tech-savvy population and the rising popularity of several companies in the region. Industry participants are also expected to shift their manufacturing facilities to Asia Pacific, owing to low labor and operation costs. In addition, a significant share of the large population in the region is known to be early adopters of this technology.

Key Companies & Market Share Insights: Wearable Technology Market

The key players that lead the global market in 2019 include Alphabet; Xiaomi; Huawei Device Co., Ltd.; and Apple Inc. Industry players are emphasizing collaborations and acquisition for technology development in this sector. For instance, in November 2019, Alphabet entered into definitive agreement to acquire Fitbit for USD 2.1 billion.
The market players continuously undertake strategic initiatives such as new product launches, joint ventures, contracts and agreements, and partnerships to sustain their market position. For instance, in June 2020, Fitbit introduced Ready for Work solution to help employers manage safety and workplace health during the COVID-19 crisis.
Some prominent players in the wearable technology market include:

Key companies Profiled: Wearable Technology Market Report

 	
Alphabet
 	
 SAMSUNG
 	
 Garmin Ltd.
 	
Huawei Device Co., Ltd.
 	
Apple Inc.
 	
Sony Corporation
 	
HTC Corporation
 	
Fitbit, Inc.
 	
Xiaomi Global Community

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 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global wearable technology market report on the basis of product, application, and region:

Product Outlook (Revenue, USD Million, 2016 - 2027)

 	
Wrist-wear
 	
Eye-wear & Head-wear
 	
Foot-wear
 	
Neck-wear
 	
Body-wear
 	
Others

Application Outlook (Revenue, USD Million, 2016 - 2027)

 	
Consumer Electronics
 	
Healthcare
 	
Enterprise & Industrial Application
 	
Others