Wearable Technology Market Growth & Trends

The global wearable technology market size is expected to reach USD 118.16 billion by 2028, registering a CAGR of 13.8% from 2021 to 2028, according to a study conducted by Grand View Research, Inc. The rapid increase in demand for multimedia devices and smartphones, coupled with the surge in the adoption of fitness trackers and health-based wearables, is anticipated to propel the market for wearable technology. Furthermore, increasing health awareness among consumers is leading to increased interest in fitness activities such as cycling, running, and walking. Fitness and activity tracking devices provide a way of monitoring progress and analyzing the physiological data gathered, thereby contributing to market growth.

Rising incomes, changing lifestyles, improved standards of living, and increased consumer awareness about the need to adopt energy-efficient products are encouraging consumers to spend more on utilities, thereby supporting the market growth. Furthermore, technological innovations and advancements and the larger availability of affordable and efficient products create growth opportunities for the market.

Increasing internet penetration in several countries across the globe is likely to help create lucrative growth opportunities for the market. For instance, according to the World Bank, the number of internet users in the U.S. has increased from 87.27% of the total population in 2017 to 88.49% in 2018. In China, 54.3% of the country’s population used the internet in 2017.

However, the COVID-19 pandemic impacted the supply chain of the market during the first two quarters of 2020 as shipments of these devices declined. The supply and demand gap has increased due to the limited availability of raw materials and labor shortage in manufacturing units. Nevertheless, the rising focus of governments on economic revival and leniency in lockdown restrictions are expected to witness drive market growth during the forecast period. Furthermore, rising health concerns among individuals are also expected to contribute to market growth.

The North America regional market, valued at USD 14.11 billion in 2020 and dominated the global market owing to the increasing demand for wearable devices in the U.S and Canada. Furthermore, the presence of several prominent players such as Alphabet Inc.; Garmin Ltd.; and Apple, Inc. in the region is also expected to favor market growth through the forecast period. These players majorly focus on strategic partnerships and mergers and acquisitions to enhance their business operations. For instance, in November 2019, Alphabet Inc. announced the acquisition of Fitbit Inc.

Wearable Technology Market Report Highlights

  • In terms of product, the wrist-wear product segment is expected to dominate the market for wearable technology over the forecast period due to the increased adoption of smartwatches among millennials. The segment is expected to reach USD 62.16 billion by 2028
  • In terms of application, the consumer electronics segment is expected to dominate over the forecast period. The segment is anticipated to reach USD 59.55 billion by 2028
  • North America is projected to account for the majority share of the global market over the forecast period. The regional market is anticipated to reach USD 36.67 billion by 2028. The growth in disposable incomes and the rapid adoption and popularity of connected devices are some of the major drivers of the regional market
  • The prominent industry participants include Apple Inc.; Fitbit, Inc.; SAMSUNG; Xiaomi Global Community; and Huawei Device Co., Ltd.