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