[Research Report] The wearable technology market size is expected to grow from US$ 26.19 billion in 2015 and is expected to reach US$ 170.91 billion by 2025. The market for wearable technology market is estimated to be growing at a CAGR of 20.8% from the year 2016 to 2025.   

Analyst Perspective:

The wearable technology market has witnessed substantial growth in recent years, driven by technological advancements, growing awareness of fitness and wellness, and the increasing demand for healthcare gadgets in healthcare facilities. Wearable products incorporate advanced features and functionalities to enhance the overall consumer experience. One of the major factors driving the wearable technology market is the growing internet and mobile penetration.

The wearable technology market growth is driven by the growing penetration of smartphones, mobile devices, tablets, and devices used for Machine-to-Machine communications, growing business models and evolving software ecosystems. Almost all standard wearable devices are paired with smartphones, which have become the primary part of wearable technology user’s day-to-day life. Wearable technology products such as smartwatches are mainly synced with smartphones, helping end-users to check messages and attend calls without taking out their smartphones. Nowadays, companies like Samsung, OnePlus, and others are launching smartphones with corresponding wearable devices to provide end users with enhanced experiences.

Market Overview:

Wearable technology is one of the most well-known advancements, integrating technology with regular accessories, enabling users to make their lives easier. It helps the users in achieving their goals. These wearable devices are projected to benefit the different classes of people in their daily lives. Currently, people are living in a highly connected and networked world. Most of the population globally have internet access and possess mobile devices. People increasingly use mobile devices for various purposes, such as knowledge exploration, communication, shopping, entertainment, etc. In addition, rising urbanization and increasing consumer disposable income are major drivers expected to fuel the adoption of smartphones and wearable devices connected over the internet.

Growing machine-to-machine (M2M) communication due to improvements in sensor technology and easily accessible high-speed networks are finding high applications in various sectors, such as manufacturing, electronics, and other sectors. The rise in connected devices and expanding M2M communication affect the development of wearable devices and technologies. A range of wearable devices, such as industrial safety devices and health monitoring devices, are experiencing an optimistic adoption rate, as they offer end users improved real-time actionable data and enhanced operational efficiency of the device. The wearable technology market is experiencing increasing numbers of new entrants providing highly innovative, advanced and different varieties of wearable solutions at competitive prices. Increasing demands and designing innovations in wearable fashion accessories, such as smart luxury watches, rings, bracelets, necklaces etc., are also driving the wearable technology market.

The wearable technology market’s supply chain analysis captures all the stages of manufacturing and supplying wearable technology products and solutions. The applications of the wearable technology market are segmented into infotainment, safety & security, industrial & military, healthcare & medical, fitness & wellness, and fashion & lifestyle. The raw materials used for manufacturing wearable devices and other hardware components include ICs, PCBs, power systems & batteries, sensors, electronic adhesives, textile materials, glasses, antennas, LED and other electronic components and materials. Some existing raw material suppliers and providers in the wearable technology market are Alpha-Fit, Adhesives Research and others that supply raw materials to the component manufacturers and integrators. The manufacturers and integrators then develop the final product and deliver it to the end users. The manufacturers and integrators of wearable technology also focus on vertical integration to improve their product offering via self-owned physical and online retail stores through various processes such as R&D, fabricating the device, quality control and test and standardization are used to manufacture various kinds of wearable technology solutions to meet the end-user requirements.

A wearable technology solution provider uses multichannel distribution systems such as online and offline channels. The entire system functions on internet connectivity. Few wearable technology providers also design web applications for mobile phones and other devices.

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Published Report - Wearable Technology Market: Strategic Insights

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Market Driver:

High adoption of wearable technology across various application areas and rising investment by the wearable ecosystem players to drive the growth of the wearable technology market.

Wearable technology encourages enormous potential for process advancement and advancing work effectiveness and efficiency. Wearable technology has wide application areas and can be used in various industries such as retail, medical and healthcare, manufacturing, fitness, etc. In the retail industry, wearable devices improve sales processes, customer experiences, and services. In the manufacturing industry, this technology helps provide hands-free guidance tools, which eventually help enhance the production process and streamline processes, improving the accuracy of information to lessen healthcare costs in medical facilities and centers significantly.

In recent years, several wearable technology market players worldwide and companies working towards delivering innovative and advanced wearable solutions have received high funding from various financial houses and established technology firms. For instance, in June 2023, Dubai-based Endefo, an electronic brand under the Ashtel Group of Companies, announced the plan to invest US$ 24.06 million (Rs 200 crore) in the Indian wearable technology market by the end of 2024.

In addition, according to the Department of Defense (DoD) in April 2023, the DoD is investing in wearable technology that can rapidly detect diseases. In partnership with the private sector, its Defense Innovation Unit (DIU) launched a wearable device that was successful during the pandemic in detecting infections. Now, it plans to expand its technological capabilities and develop advanced products. Moreover, other wearable technology market players have received high investments to develop technologically advanced and innovative wearable solutions further. Hence, the promising benefits of using wearable technology across various application areas and the high level of investment fueling the innovation that is projected to foster the global wearable technology market.

Segmental Analysis:

Based on product type, the wearable technology market is segmented into smart clothing & smart glasses, sleep sensors, smart watches, activity monitors, augmented reality (AR) headsets, continuous glucose monitors (CGM), heart rate monitors (HRMs), drug delivery devices, hand-worn terminals, wearable patches, and jewelry.

Digital eyeglasses, also known as smart glasses, are wearable devices that allow the user to add information to what the user sees via an optical head-mounted display or AR overlay, which reflects the projected digital images and lets the wearer see through the device or see better with it. Google Glass is one of the leaders in smart glasses, and many market players are currently developing smart glasses. Some of the smart glass manufacturers have their own production houses. These smart glasses consist of features such as tiny lens space with the help of nanotechnology, AR, AI, camera, wireless technologies, and others, leading to their adoption by the end users.

Smart clothing or e-textiles, smart textiles or smart fabrics are the clothes that allow digital and electronic components to be embedded into them. These fabrics have been made with innovative and advanced technology to deliver value to the wearer. It comes under two categories, namely performance enhancing and aesthetic. Performance-enhancing fabrics help regulate the body temperature, control music vibration and decrease wind resistance, which enhances athletic comfort and performance, greatly impacting extreme sports, defense and athletics. Aesthetic, on the other hand, are the fabrics that can change color and collect energy from the environment by sound or heat, harnessing vibrations reacting to this input. Other fabrics include clothes developed and designed to safeguard against environmental hazards such as radiation.

Market players in wearable technology are developing such devices. For example, in May 2021, Nextiles launched smart fabrics that capture biometric and biomechanics data. They integrate traditional sewing techniques with PCBs to make comfortable material with sensors rooted within fabrics, such as everyday sportswear.

Regional Analysis:

According to global wearable technology market analysis, North America holds the largest market share. The market is propelled by the spreading awareness of fitness and health, where wearable devices play a crucial role. The declining price of wearable devices, increased adoption among the end users and increasing competition and advancement in technology make wearable technologies economical. Further, growing demand for several application sectors, such as wearable technology for healthcare, security and fitness, is fostering the demand for wearable technology in North America.

The rising adoption of tablets and smartphones supports integrating smartphones with wearable devices. The wear segment in the wearable technology market captures the largest share and is predicted to lead the market during the forecast period. The launch of smartwatches by companies such as Nike, Apple, and Samsung, among others, has influenced the market's growth. For instance, in July 2023, Biostrap launched a new Kairos wearable device wrist-worn digital health monitoring device for data visualization of the autonomic nervous system. As North America is an early adopter of technologies, it has wide penetration for wearable technologies. The main reason for the region's dominance is the passion to maintain a healthy lifestyle in North American countries, mainly in the US and Canada. Also, continuous technological advancement, high disposable income and purchasing power in this region fuel the development of the North American wearable technology market.

Wearable Technology Market Report Scope

Key Player Analysis:

The Wearable Technology Market analysis consists of the players such as Fitbit Inc., Xiaomi Inc., Apple Inc., Garmin Ltd., Samsung Electronics Co., Adidas Group, Google Inc., Intel Corporation, Jawbone, Koninklijke Philips N.V., LG Electronics Inc., Medtronic, Inc., Microsoft Corporation, Nike, Inc., Pebble Technology Corporation, Qualcomm Inc., Sony Corporation, Suunto Oy are the top two players owing to the diversified product portfolio offered.

Recent Developments:

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the wearable technology market. A few recent key market developments are listed below: 

• In May 2020, GOQii announced the launch of the world’s first smart wristband with sensors to detect body temperature during the pandemic. It helped to detect the early symptoms of coronavirus.
• In May 2023, Nodis unveiled smart glass technology with instantly electrically switchable color, infrared filtering, and tinting.