Wearable Technology Market Growth & Trends
The global wearable technology market size is expected to reach USD 104.39 billion by 2027, expanding at a CAGR of 15.9% over the forecast period, according to a study conducted by Grand View Research, Inc. Increasing demand for smartphones and multimedia devices and the increasing installation of health-based wearables and fitness trackers is projected to fuel the market growth. Rising health awareness is driving the demand for devices tracking physical activities such as running, cycling, and walking. Activity and fitness tracker devices offer an ideal solution for health-conscious individuals. These are some of the major factors fueling the market growth.
Developing an urban lifestyle, growing income levels, and increasing disposable income stimulates customers to spend on consumer utilities. Also, the surge in consumer awareness pertaining to energy-efficient products and enhanced standard of living is projected to contribute to the market growth. Technological advancements and innovations are making provisions for efficient and affordable products, in turn creating demand for wearable devices across the globe. Changing consumer preference, paired with quality standards, may open avenues for the market.
The wearable technologies industry is dominated by start-ups. The developing prominence of crowdfunding sites such as GoFundMe, RocketHub, GoGetFunding, Indiegogo, and Kickstarter is anticipated to drive the overall growth. For instance, Revibe Technologies was funded by The Launch Place. Furthermore, growing interest in wearable technologies from the venture capital community is providing stimulus to the growth of the market.
However, the COVID-19 pandemic has had a substantial effect on the wearable technology supply chain. The market has experienced a slowdown with fall in shipments during the first half of 2020. Asian countries such as Japan, China, Taiwan, South Korea, and India, have a large presence of raw material providers have witnessed large impact on the product demand as well as production schedules. Many companies are experiencing flat or lower unit sales due to the lockdown in most global economies has resulted in deliveries limited to essentials.
North America dominated the market in 2019 due to the huge demand for wearable technology devices in U.S. With the advent of smart gadgets; the demand is growing for more sophisticated and powerful wearable technologies. Apart from U.S., the demand for wearable devices is also increasing in Canada. In addition, U.S. is home to several prominent players such as Apple, Inc., Alphabet, and Garmin Ltd., which majorly contribute to the market growth.
Wearable Technology Market Report Highlights
- The wrist-wear product segment is expected to dominate the market due to surge in adoption of smartwatches amongst the millennial population. The segment is expected to reach USD 52.41 billion by 2027
- The consumer electronics market is expected to dominate the applications segment and the trend is expected to continue over the forecast period. The consumer electronics market is anticipated to reach USD 51.31 billion by 2027
- North America is projected to account for the majority share of the market over the forecast period. The region is anticipated to reach USD 32.81 billion by 2027. The growth in disposable income and the rapid adoption and popularity of connected devices are some of the major drivers of this geographical region