Wearable Artificial Intelligence (AI) Market is expected to surpass USD 180 billion in revenue with over 1 billion units sold by 2025. The rising disposable income across developing economies is driving the adoption of wearable AI devices. Over the last decade, the population of the middle class in developing countries has grown exponentially. The middle-class population in Asia Pacific countries has grown from 0.52 billion in 2009 to over 1.7 billion in 2018 and is expected to exceed over 3.2 billion by 2030. This growth is attributed to extensive industrialization and increasing employment in various service-oriented industries. As a result, there is a fundamental change in customer spending trends related to consumer electronic products.
The increasing concerns among consumers toward fitness & healthy lifestyle are promoting the adoption of smart wearable devices. With the rise in obesity & heart-related illnesses around the world, there has been a simultaneous growth in the adoption of smart wearable technology among consumers for health monitoring applications. The smartwatches and fitness bands are integrated with various sensory hardware, which can monitor several health-oriented vitals including blood pressure and heart rate, enabling consumers to inspect the health conditions on a regular basis without the involvement of any healthcare personnel. It also provides real-time health-based insights to users regarding their health conditions in an inexpensive manner.
The smartwatches and fitness bands segment holds over 85% share in the wearable AI market. The continual advancements in the design & functionality of smartwatches and along with its availability at the inexpensive price have increased its usage among consumers. Particularly, the availability of LTE connectivity in smartwatches has offered customers an alternative to bulky smartphones. The head-mounted display market is projected to attain a CAGR of more than 38% over the projected time period due to its widespread adoption in the VR-based gaming sector as it provides the gamers with immersive & high-quality gaming experience. The advent of high-tech gaming consoles has allowed users to communicate with the surroundings in the VR-based gaming environment in a better manner. The expensive nature of head-mounted devices is restricting its usage among consumers as they are unwilling to invest in screenless VR systems. The earwear market is expected to register a CAGR of over 43% over the projected time frame due to the rising availability of AI assistants in various smartphones. The AI assistants, such as Alexa and Siri, allow customers to conduct numerous actions through speech commands.
The gaming segment is anticipated to attain a growth rate of over 35% over the forecast timeline. This is credited to the technical advances in the VR/AR oriented gaming software & hardware gaming consoles. The addition of next-generation audio & video graphics in the VR/AR oriented immersive gaming landscape is swiftly gaining traction in the VR/AR based gaming community. The wearable technology device enterprises are incorporating advanced gaming technologies, such as 3D graphics and interactive graphics, to provide a more immersive experience to the users. The consumer electronics market accounts for over 90% stake in the wearable AI market due to the rising adoption of smart wearable devices among consumers to enhance their lifestyle.
The North America region held more than 30% share in the wearable AI market in 2018. The large consumer electronics providers, such as Oculus and Apple, have provided consumers with high-end wearable devices at a lower price. Moreover, the high level of adoption levels among customers within the age bracket of 16 to 34 is driving the adoption of smart wearable devices in the region. The Asia Pacific wearable AI market is predicted to register a growth rate of over 50% during the forecast timeline due to the growing average income in developing countries such as China, South Korea, India, and Japan. The companies present in these countries are introducing smart wearable products at affordable prices.
The wearable AI market is dominated by the multinational consumer electronics players such as Samsung, Apple, Fitbit, Microsoft, and Xiaomi. The large companies operating in the market have partnered with premium brands to contend with the traditional watch manufacturers. In 2016, Apple collaborated with Herm?s and Nike to offer its private product line of luxury smartwatches and fitness bands. The companies in the wearable AI market are Bragi, Apple, Huami Jabra, Facebook, Microsoft, HTC Garmin, Xiaomi, Huawei, Fitbit, Fossil, Google, and Samsung.