Wearable AI Industry - Regional Synopsis
APAC Market Forecasts
The Asia Pacific wearable AI market is projected to capture a share of 35% with the increasing demand for smartwatches, as well as fitness trackers. The governments of Japan and China are investing in digital infrastructure to support this trend. On the other hand, the PLI Scheme in India announced to allocate around $19.5 billion for the manufacturing of wearable electronics. The government initiatives are promoting various wearable AI, especially in healthcare, fitness, and elderly care applications.
The China wearable AI market is growing at a steady pace, attributed to the increasing consumer demand for fitness bands and AI-based devices in healthcare. The local government has also underlined the importance of digitalization by allocating more than 59 billion USD to develop 5G networks for the entire country by the end of 2025 as a part of the new infrastructure strategy. Furthermore, the Ministry of Industry and Information Technology has more recently set programs aimed at increasing demand for local innovation of smart wearable technologies. These national efforts are improving the development of wearable AI equipment, thereby escalating the market growth.
North America Market Statistics
The wearable AI market in North America is projected to account for 20% of the market share in 2037, based on the region’s digital infrastructure, a well-established 5G network, and AI-supportive government policies. In the U.S., the BEAD program of the National Telecommunications and Information Administration and the Federal Communications Commission’s 5G FAST plan are currently pushing wearable AI more intently into the ICT landscape. These programs are promoting the AI-based wearables in various industries such as healthcare, defense, and smart infrastructure. These policies align with the national objectives of smart healthcare and smart industries. According to the US NTIA in 2023, more than 2.2 million households received connected services, compared to 1.9 million in 2021.
The wearable AI market in the U.S. is set to experience exponential growth in the near future. This growth is attributed to the increased consumer awareness of smartwatches and fitness trackers, having over 22.5 million users in 2023. The local government is increasingly supporting the market growth by investing in the 5G ecosystem. For instance, the NTIA’s Broadband Equity, Access, and Deployment (BEAD) Program allocated nearly $43 billion under the Infrastructure Investment and Jobs Act for the expansion of broadband. These investments increase the ability of wearable AI devices, mainly in the healthcare sector, which is propelling the market growth.
