Global wearable tech market is fast Evolving
Dr. Evangelo Damigos; PhD | Head of Digital Futures Research Desk
- Connected Intelligence
- Sustainable Growth and Tech Trends
Publication | Update: Mar 2020
According to Steve Ranger of ZDNet, the market for wearable devices will continue to grow over the next three years and will continue to be dominated by smartwatches, with the Apple Watch continuing to be the biggest player.
According to IDC research global wearable device shipments reached 336.5 million in 2019. The bulk of this growth comes from the fourth quarter, which reached a new high of 118.9 million devices shipped, or an 82% growth rate.
IDC predicted that hearables would be the new wearables. According to IDC's latest data in its Worldwide Quarterly Wearable Device Tracker report, this prediction holds true: More than half (55%) of the growth of wearables was attributed to hearables.
IDC defined hearables as "the wearables that hang on or plug into the ear. The device must operate wirelessly and provide stereo sound while also including at least one of the following features: Track health/fitness, modify audio, provide language translation on the device, or enable smart assistants at the touch of a button or through hotword detection."
According to GrandView Research, the global wearable technology market size was valued at USD 32.63 billion in 2019 and is projected to expand at a compound annual growth rate (CAGR) of 15.9% from 2020 to 2027. The growing popularity of the Internet of Things (IoT) and connected devices and rising technically sound population is expected to drive 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.
According to Macy Bayern of Tech Republic, many tech giants have jumped on the hearable train, including Apple with the Airpods Pro, Amazon with Echo Buds, Android with Galaxy Buds, Microsoft with Surface Earbuds, and Google with Pixel Buds, cutting the cord as phone manufacturers eliminate the headphone jack.
Other popular wearable categories included watches (37% year-over-year growth) and wristbands (22% year-over-year growth). Wrist-worn devices captured nearly 49% of the total market, down from 70% last year.
Regardless of this decline, the wearables market grew by 89% in 2019, the report found.
Watches reached 92.4 million units shipped in 2019, which was up 23% from the 75.3 million units in 2018. According to the report, 2019 was the first time Apple's annual market share dipped below 40%, hitting 29%, while Huawei and Samsung gained popularity.
Earwear had the best year by far, shipping 170.5 million units worldwide and seeing 250% growth from shipments in 2018, the report found. With so many shipments occurring at the end of 2019, the popularity can be expected to continue into 2020.
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 drive the demand for fitness and wellness products over the forecast period. 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 boost 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
Objectives and Study Scope
This study has assimilated knowledge and insight from business and subject-matter experts, and from a broad spectrum of market initiatives. Building on this research, the objectives of this market research report is to provide actionable intelligence on opportunities alongside the market size of various segments, as well as fact-based information on key factors influencing the market- growth drivers, industry-specific challenges and other critical issues in terms of detailed analysis and impact.
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The degree of necessity. Luxury products and habit forming ones, typically have a higher elasticity.
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