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The smartwatch market size is forecast to increase by USD 38.81 billion at a CAGR of 14.94% between 2023 and 2028. Market growth is contingent on several pivotal factors, notably the continuous advancements within the semiconductor industry, substantial investments in telecommunication network infrastructure, and the increasing recognition of the advantages associated with maintaining a healthy lifestyle. These factors collectively contribute to the burgeoning demand for innovative technologies, drive the expansion of telecommunication capabilities, and foster heightened consumer interest in health-conscious products and services. With ongoing developments in semiconductor technology, such as the evolution of more efficient and powerful chips, the telecommunication sector is poised for substantial growth, enabling enhanced connectivity and communication. Moreover, investments in robust network infrastructure further strengthen telecommunication networks, paving the way for improved reliability and performance. Concurrently, the growing awareness of health-related issues prompts individuals to seek out products and services that promote wellness, thus driving market expansion in the health and wellness sector.
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The market is experiencing robust growth, driven by factors like increasing shipment volume and the demand for OLED-based smart watches. These devices offer advanced features such as heart health monitoring and utilize organic light emitting diodes (OLED) for vivid displays. With the rising penetration rate of urbanization, consumers seek aesthetically appealing and health monitoring smartwatches that provide real-time insights into their health status, including glucose monitoring for conditions like diabetes.
The android wear segment is estimated to witness significant growth during the forecast period. Android Wear OS is an Android OS of Google LLC (Google), a subsidiary of Alphabet Inc., that is specifically designed for smartwatches. The Android OS enables end-users to download applications from the Google Play Store. Android Wear OS is a software platform that allows programs to run on such watches.
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The android wear segment was the largest segment and was valued at USD 8.37 billion in 2018. Android Wear OS supports to connect with smartphones running on Android 6.0+ and iOS 13.0+ OS. Besides, as the Android platform is an open-source platform for software developers, it is easy for them to develop applications for such watches. UV Index Now, Foursquare, Wear Casts, App in the Air, and Wear Reader are among the applications developed on the Android platform and available only in Wear OS-based smartwatches. These applications enhance the functionality of smartwatches and the user experience. Thus, the Android wear segment is expected to drive the development of the market during the forecast period.
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North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is a lucrative market for smartwatch manufacturers, driven by early technology adoption and leading players like Apple Inc., Alphabet Inc., and Garmin Ltd. Factors such as rising disposable income, the emergence of LTE-enabled smartwatches, and a focus on health features fuel demand.
Further, the US, particularly tech-savvy consumers, serves as a preferred launch market for new products. Crowdfunding platforms like Kickstarter and Indiegogo support startups in developing innovative wearables. The region's growing ecosystem of connected devices and high penetration among millennials further boosts market growth. Investment in telecommunication infrastructure, including 5G rollout, amplifies smartwatch sales, with major players like Apple, Samsung, Alphabet, Garmin, and Fossil dominating the market.
The market witnesses significant growth, driven by factors like rising urbanization, increasing health consciousness, and the booming fitness industry. Advanced features such as SpO2 sensors, electrocardiograms, and OLED-based displays cater to the demand for health monitoring. These watches offer functionalities like blood oxygen saturation measurement, fall detection, and native sleep tracking, providing users with real-time health status into their heart health and overall well-being. As urbanization increases and consumers seek aesthetically appealing advanced products and health monitoring devices, the market is poised for further expansion. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Technological advances in the semiconductor industry are the key factor driving the market. The global smartwatch market is witnessing a surge in demand, with consumers prioritizing sleek design, compactness, and operational efficiency. Technological advancements in electronic components, notably chip system-on-a-chip (SoC) technology and microelectromechanical systems (MEMS), are revolutionizing smartwatch development with sleep trackers and activity trackers. SoC technology enables manufacturers to reduce printed circuit board space and integrate numerous electronic components into compact smartwatches.
Moreover, the evolution of MEMS technology facilitates the integration of additional features into smartwatches by enabling the development of microsensors and microactuators. This innovation drives device miniaturization and enhances the capabilities of wearable electronic devices. Consequently, MEMS components, with their size and cost efficiency advantages, are increasingly integrated into smartwatches, meeting the demands of consumers seeking enhanced fitness tracking and health monitoring features in their wearable technology. Thus, technological advances in the semiconductor industry will drive the market during the forecast period.
Medical and fitness accounting for significant market share is one of the primary market trends. Monitoring health has been the most advantageous aspect of wearable technology. Not only does it help fitness enthusiasts by providing them with the necessary health parameters, but it also aids patients by providing insights into their conditions. People are more worried about their health, and this has led to an increase in the adoption of fitness trackers. The wearable fitness tracker, and since the popularity of smartwatches is increasing significantly, they have multi-functional features for recording health parameters such as pulse rate and blood pressure, among others.
Moreover, the accelerometers integrated into wearable devices can detect convulsions and tremors, particularly in illnesses such as epilepsy. When epileptic seizures occur, prompt and effective treatment is critical to minimizing the chances of long-term harm to the body. Further, Fitbit is working on clinical validation and regulatory certification for its software for use in identifying health issues. Thus, medical and fitness accounts for a significant market share during the forecast period.
Increasing data security and privacy concerns is a significant challenge that affects market expansion. There are increasing concerns about data security and privacy for wearable device users, as a majority of smartwatches are embedded with motion sensors that render these devices vulnerable to hackers. The data can be easily decoded without the owner's knowledge using a wireless interceptor. As wearable devices store and access large volumes of data in real-time, including calls, messages, health-related information, photos, maps, and debit/credit card information, there is an inherent risk of a data breach.
Moreover, wearable devices or such watches are connected to the human body and provide invaluable insights into the user's health. One of the serious violations of human privacy may take place in athletics championships, wherein a hacker can easily track the workout routine and the strengths and weaknesses of the competing athletes. Moreover, there are many smartwatches with embedded near-field communication chips. Hence, increasing data security and privacy concerns is a major challenge for the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc.: The company offers smartwatches under the brand name Fitbit, such as Fitbit Versa 4, Fitbit Sense 2, Fitbit Versa 3, Fitbit Charge, and others.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
US - Wearables Market: US - Wearables Market by Distribution Channel, Product and Application - Forecast and Analysis
Smart Wearable Entertainment Devices and Services Market: Smart Wearable Entertainment Devices and Services Market Analysis North America, APAC, Europe, Middle East and Africa, South America - US, China, Japan, Germany, UK - Size and Forecast
Smart Wearable Fitness and Sports Devices and Services Market: Smart Wearable Fitness and Sports Devices and Services Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, Canada, China, India, Germany - Size and Forecast
The market is witnessing remarkable growth, propelled by advancements like Gear A smartwatch and Xtend Sport smartwatch, offering features such as stress monitor, calorie counter, and ECG sensor. These wearable computing devices serve as time-keeping devices and personal assistants, capable of displaying weather reports, handling phone calls, and playing music. With Bluetooth capability and wireless Bluetooth adapters, they seamlessly integrate with smartphones, enabling text messages and digital assistant interactions. Despite supply chain disruptions and price bands, the global smartwatch market remains dynamic, driven by factors like low power consumption, high image quality, and IoT integration. Catering to diverse demographics, including older people, and addressing health concerns like sleep apnea and fall detection, smartwatches are becoming essential health monitoring and lifestyle devices, despite their high cost.
Further, the market continues to evolve with innovations such as the Forerunner 945 LTE and upgraded smartwatches offering advanced features like the fall detection app and EKG monitor. These wearable computing devices integrate seamlessly with smartphones via Bluetooth-capable technology and wireless Bluetooth adaptors, enabling various functionalities such as time-keeping, notification alerts, and health monitoring. Equipped with display technology and LCDs, they provide intuitive interfaces (UI), enhancing user experience. Moreover, with Internet of Things (IoT) integration, they can connect with other devices, enabling features like skin sensor for measuring UVB and UVA exposure. However, the high cost of the device remains a challenge despite business collaborations such as that with L'Oreal. As the market dynamics evolve, the smartwatch market report reflects ongoing advancements and trends shaping this burgeoning industry.
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Market Scope |
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Report Coverage |
Details |
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Page number |
178 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 14.94% |
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Market Growth 2024-2028 |
USD 38.81 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
13.92 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 41% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., Apple Inc., CASIO Computer Co. Ltd., Citizen Watch Co. Ltd., Fossil Group Inc., Garmin Ltd., HK SMARTMV Ltd., Huawei Technologies Co. Ltd., Imagine Marketing Pvt. Ltd., LG Electronics Inc., LVMH Moet Hennessy Louis Vuitton SE, Polar Electro Oy, Samsung Electronics Co. Ltd., Savex Technologies, SUUNTO, Tapestry Inc., Tata Sons Pvt. Ltd., Timex Group, Xiaomi Communications Co. Ltd., and Zepp Health Corp. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by OS
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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