Smartwatch Market Trends
Growth Drivers
- Growing Investment by Developed Economies in Smart Devices - Given its ability to increase spending on mobile devices and, in particular, wearable electronics, high consumer expenditure from advanced economies has played a key role in driving up sales. For instance, in 2022, China was the top market for mobile apps, with consumers spending roughly USD 58 billion. In addition, smartwatch market growth will be supported by the growing production of smartwatch for children by companies. In addition, a driving factor for market development is the fact that EU countries have high per capita income. It is because of the high per capita income that more consumers would be inclined to increase their purchase of Smart Wearables.
- Growing Focus on the Development of Products for the Children - By reinforcing the production of products with a specific focus on children, key companies in the sector are increasingly turning their attention to them. This is expected to lead to growth in the market. This increase is due to an increasing number of parents who are becoming more and more familiar with how this could help improve their children's lives by enabling them to participate in physical activity. For instance, the Mitu Kids Smartwatch 7X is the most recent generation of Xiaomi's famous children's smartwatch. The smartwatch is available in Pink and Blue and can be pre-ordered from Xiaomi Youpin in China for 599 yuan (USD 83). The watch has a 90-day high-precision trajectory, allowing parents to see their child's walking history from the previous three months.
- Increased Integration of IoT in Wearables - The Internet of Things (IoT) wearable facilitates data-driven decision-making and allows users to interact with colleagues remotely for video conferencing. Smartwatch include Internet of Things related features enabling information to be transmitted from the device to a remote server and allowing real-time monitoring of individual behavior. Various applications, such as edge analysis, computation offloading, sports performance, biometrics, automatic device connection, and so on, use Internet of Things smartwatch. Smartwatch have finally created IoT applications with human components. In light of this, the smartwatch market is estimated to witness growth during the projection period.
Challenges
- Higher Costs of the Product - The cost of smartwatch remains a possible barrier to commercial expansion. While these gadgets have a variety of features, high-quality smartwatch with advanced capabilities can be quite pricey. The high cost of these devices may prevent budget-conscious users from purchasing them, especially when compared to cheaper fitness trackers and traditional watches. Manufacturers must strike a balance between affordability and feature-rich offers to reach new consumer segments and increase their market.
- Discordancy Associated with some Smartphones may Hinder the Market Growth
- Regular Need to Charge the Smartwatch due to Limited Battery Life may Impede the Market from Growing
Smartwatch Market: Key Insights
The growth of the global smartwatch market is driven by several factors such as increasing sales of smartphones worldwide, rising demand from consumers for wireless health and fitness devices, especially from among those individuals involved in sports activities that includes athletics, swimming, cycling and many more activities. According to International Monetary Fund (IMF), the global demand for smartphones had risen enormously and during the year 2016 alone, the global smartphone sales had touched a high of close to 1.5 billion devices.
The global smartwatch market is anticipated to grow at a CAGR of around 17% over the forecast period i.e. 2020-2027. The market is segmented by operating system, product type, application and by wireless technology, out of which, the health and fitness segment forming part of application segment is anticipated to occupy the highest market share, on account of increased demand for fitness devices that can be connected wirelessly to a smartphone or computer for maintaining a track record of fitness of individuals. According to World Health Organization (WHO), about 17.9 million people die from cardiovascular diseases every year which accounts for an estimated 31% of all deaths worldwide. Considering the gravity of the situation, there is an increasing focus laid on maintaining the health and fitness by individuals who are taking up regular exercises and fitness regime on priority by regularly tracking their health and fitness levels which is estimated to aid the growth of the smartwatch market over the forecast period. CLICK TO DOWNLOAD SAMPLE
Growth Drivers
Rising Levels Of Health Awareness Among The Consumers Globally
There has been an increase in the spending by consumers globally on health and fitness gadgets that can continuously monitor their health and levels of physical activity every day. The U.S. Department of Health and Human Services predicts that, by 2030, half of all adults in the United States will be obese. In view of insufficient physical activities that can create several risk factors for individuals in the form of non-communicable diseases such as cardiovascular diseases, cancer and diabetes, several policies have been brought in by WHO member states and are currently put into operation to address insufficient physical activity. Through the use of smartwatches, individuals are able to perform self-monitoring of their physical activities and are able to communicate their health status with their doctors and family members. These factors are anticipated to drive the growth of the market over the forecast period.
Shift towards Wireless Electronic Devices by Individuals Followed by Better Internet Connectivity Across all Regions Globally
The demand for wireless electronic devices is rising, owing to shift towards digitalization and internet connectivity spreading across all regions globally and covering even remote locations globally. The presence of various apps which can be used for various purposes, some of them being playing music, games and several other applications are generating higher demand for smartwatches among consumers. These smartwatches offer wireless connectivity, besides allowing several fitness activities such as the distance travelled, calories burnt, number of steps taken per day and many more to be monitored and tracked by using them.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
7.6% |
|
Base Year Market Size (2024) |
USD 28.94 billion |
|
Forecast Year Market Size (2037) |
USD 75 billion |
|
Regional Scope |
|
