Global Wearable Devices market will reach USD 45.78 billion by 2025

The global wearable devices market was valued at USD 24.48 billion in the year 2019 and is estimated to reach USD 27.17 billion by the year 2020.

It is expected to grow at the CAGR of 11.3% within the time horizon of 2020-2025. Its market value will reach USD 45.78 billion by the end of the year 2025.

  • Definition / Scope
  • Market Overview
  • Market Risks
  • Top Market Opportunities
  • Market Trends
  • Industry Challenges
  • Technology Trends
  • Pricing Trends
  • Regulatory Trends
  • Market Size and Forecast
  • Market Outlook
  • Technology Roadmap
  • Distribution Chain Analysis
  • Competitive Factors
  • Key Market Players
  • Strategic Conclusion
  • References
  • Appendix

Definition / Scope

The wearable devices are the smart devices worn on the body in close to the surface of the skin with comfort that detect, track, analyze and transmit the real-time information on the activities of its users.

It provides the information about blood pressure, oxygen levels, quality & quantity of sleep, calorie intake, cholesterol levels, heartbeat, and other information about the device users.  This type of smart devices is applied in the sector of consumer electronics, health care, enterprise, industrial, and others.

The global wearable devices market is concerned with the manufacture, development, distribution, and sale of the wearable devices. Based on the product type and applications, the global wearable devices market is categorized into following types:

Market Overview

The total market size of the global wearable devices market is valued at USD 24.48 billion in the year 2019 and is expected to reach USD 27.17 billion in the year 2020. Its market value is expected to grow at a CAGR of 11.3% within the forecasted time horizon of 2020-2025. Its market value is expected to reach USD 45.78 billion by the end of the year 2025.

It is expected that the number of the wearable device users will reach 368.9 million by the end of the year 2024. Based on geography, the North American region is leading the global market with a market share of almost 45.55% of the total global wearable devices market. The market size of this region is valued at USD 11.15 billion in the year 2019.

Based on the type of product, the wrist-wear segment is leading the market with a market share of almost 49.16% of the total global wearable devices market. The market size of this segment is valued at USD 12.03 billion in the year 2019.

Based on the application, the consumer electronics segment is leading the market with a market share of almost 45% of the total global wearable device market. The market size of this segment is valued at USD 11.01 billion in the year 2019.

Rising adoption of internet connected devices, rising global smartphone penetration rate, rising chronic health concerns & increasing need for health monitoring, and consumer adoption & willingness towards wearable devices are the factors responsible for the growth and development of the global wearable devices market.

However, issues of data privacy & cybersecurity, high cost of the development of the wearable device applications, and low battery life of the wearable devices might restrain the growth and development of this market.

The key market players engaged in the operation of its market are Fitbit, Apple, Adidas AG, Alphabet, Xiaomi, Huawei Device, Garmin, Sony Corporation, and, HTC Corporation.

Market Risks

  • Issue of data privacy and cybersecurity

Over the past four years, the number of data breaches has been increased by almost 50% globally. In the year 2019, more than 3,800 data breaches occurred in which almost 89% of the breaches were due to the outside attacks.

Cyber-attacks are considered to be one of the top five risks to global stability as there is a hacker attack in every 39 seconds. There is a risk of the sharing of the personal user information to the third-party users and can also be attacked by the hackers in the context of the use of the wearable devices.

The wearable devices are built-in with cameras, which can record voice and videos of the user and posts it online. It can reveal the personal information, location and will create the leakage of the sensitive information. The issue of data privacy and cybersecurity might restrain the growth and development of the global wearable devices market.

Top Market Opportunities

  • Rising adoption of Internet connected devices

Globally, the number of devices using the Internet of Things connected technologies is in increasing trend. In the year 2019, the number of the active IoT devices has reached almost 7.6 billion and is expected to reach 75.44 billion by the end of the year 2025. The number of IoT technologies has also been increased to 25% in the year 2019 from 13% in the year 2014.

The market value of the global IoT technologies is expected to grow at a CAGR of 10.53% within the forecasted time horizon of 2020-2025. The market size of the global IoT technologies is valued at USD 690 billion in the year 2019.

According to Cisco, it is expected that almost 500 billion devices will be connected to the Internet by the end of the year 2030. The rising adoption of the Internet of Things connected devices will create a significant opportunity for the growth and development of the global wearable devices market.

  • Rising global smartphone penetration rate

Globally, the penetration of the smart electronic devices such as smart phones, tablets is in increasing trend. The global smartphone penetration has reach 41.5% in the year 2019, which is increased from 33.5% in the year 2016.

The smartphone penetration rate is expected to reach 44.9% by the end of the year 2020. Globally, the number of smartphone users has reached 3.2 billion in the year 2019, increased from 2.5 billion in the year 2016. It has been estimated that the smartphone users will reach 3.8 billion by the end of the year 2021.

Along with this, the sale of the smartphone devices is also increasing and about 1.4 billion smartphones are sold annually over the past five years. The end-users of the wearable devices require the single compact product such as smartphones, tablets, to display, read and store the information about the activities of the users.

So, the rising global penetration rate of the smart phone will create a significant opportunity for the growth and development of the global wearable devices market.

Market Trends

The factors driving the growth and development of the global wearable devices market are increase in disposable income, rising health concerns & other chronic diseases, increasing popularity of the wearable devices among athletes and fitness consumers, rising aging population & increasing need for health monitoring, improving phone-based healthcare applications in compatible with wearable devices, increasing awareness on health & fitness, and consumer willingness to use the wearable devices.

The major driving factors of the global wearable devices market are discussed as follows:

  • Rising chronic health concerns and increasing need for health monitoring  

Globally, the burden of the chronic health issues is in increasing trend. The proportion of the burden of the non-communicable diseases is expected to reach 57% by the year 2020. The major chronic diseases are cardiovascular diseases, diabetes, obese condition, cancer, and other.

Here, the early screening and health status monitoring remains one of the major public health interventions for its prevention and control. In this context of the monitoring health status, the wearable devices can play a vital role. 

For instance, apple has developed the fall detection application and EKG monitor in the watch series 4 and Fitbit has added a feature to detect sleep apnea. It has been expected that next generation of the apple watches will be features with glucose monitoring for the patients with diabetes. 

Along with this, it has collaborated with the Loreal to design the first skin sensor to detect the exposure to UVA and UVB sensors. Along with this, the awareness of the sports organizations towards the health & fitness of the athletes is also rising.

For instance, the US-based basketball team Golden State warriors is working with the smart clothing company Athos to use the smart bodywear products for injury prevention and optimizing the player performance.

The rising burden of the chronic health conditions is creating the demand for the use of the health status monitoring devices, which is ultimately driving the growth and development of the global wearable devices market.

  • Consumer adoption and willingness towards wearable devices

Globally, the consumers are showing their willingness to adopt the wearable devices in their daily life. According to Infopluse, more than 80% of the consumers are willing to wear the fitness wearables. In the United States, the consumer use of wearable devices has been increased to 33% in the year 2018, increased from 9% in the year 2014.

A cross-sectional study conducted among the American across 46 states of the United States has revealed that almost two out of three Americans will be willing to adopt the health insurance wellness programs based on the wearable devices under the adequate economic and data privacy conditions.

The consumers increasing adoption and willingness towards the use of the wearable devices are driving the growth and development of the global wearable devices market.

  • High cost of development of wearable devices applications

The cost of the development of the wearable devices applications market depends upon the platform type, functionality, hosting, application, interference, animations, and third-party application integrations.

The development cost of the wearable device applications such as fitness application ranges from USD 40 to USD 50 per hour. It takes almost 180 hours to develop the nutrition section, 200 hours to develop the fundamental section, 200 hours for the workout section, and takes almost 100 hours to include the entertainment and social section.

The cost of the development of the fitness application ranges from USD 28,000 to USD 35,000 including the entertainment and social section. The high cost of the development of the wearable device applications might restrain the growth and development of the global wearable devices market.

Industry Challenges

  • Low battery life of the wearable devices

The battery life of the wearable devices is quite low. The battery life depends upon the usage of smartwatch, notifications, and updates. The average battery life of the smart watches is about 1 to 2 days.

It has been estimated that the new release of the apple watch will have the average battery life of almost 2.5 hours. It is quite challenging for the key market players to develop the energy efficient and battery durable wearable devices for the customers.

Technology Trends

Adoption of new and advanced technologies is creating a favorable environment for the growth and development of the global wearable devices market. Some of the key technological trends in this market are discussed as follows:

  • Powered Exoskeletons: It is the wearable mobile machine with the capacity of the limb movement with increase strength and endurance. It consists of system of electric motors, pneumatics, levers, hydraulics, and other combination of technologies.
  • Artificial Intelligence: This technology simulates the human intelligence and mimics their actions. The wearable devices will be enabled with artificial intelligence to enhance its capacity. The development of the brain-computer interface is also going on.
  • Wearable speakers: This type of the speakers is worn around the neck to create the immersive audio experience and better sound quality. It consists of the microphone which can be used as the telephone and can acts as a personal assistant.
  • eSkin sleep and lounge: This type of clothing are developed the elderly people to detects the falls, monitor overall activity and tracks sleep patterns. It has the capacity to differentiate the slips, falls and trips.
  • MEM sensors: This type of sensors consists of miniature mechanical and electro-mechanical elements, which are used to convert the measured mechanical signal to the electrical signal.

Pricing Trends

The price of the products of this market depends upon the type of product, technology type, application, and location of agency.

For instance, the average hour of the cost of development of the wearable applications in Eastern nation ranges from USD 35 to USD 60 while the average hour of the cost of development of the wearable application in the western nation ranges from USD 80 to USD 120.

The development cost of the wearable device applications such as fitness application ranges from USD 40 to USD 50 per hour. The cost of the development of the fitness application ranges from USD 28,000 to USD 35,000 including the entertainment and social section.

Regulatory Trends

The regulation related to the global wearable devices market differs in accordance with the country and application segments. For instance, the regulations related to the medical wearable devices in the Turkish law are Regulations on Medical Devices, Regulations on In Vitro Diagnostic Medical Devices, and Regulations on Active Implantable Medical Devices while the regulations In the context of the United States, the guidelines related to the wellness devices are developed by the US Food and Drug Administration.

The privacy concerns of the fitness trackers devices in the United States is regulated under Health Insurance Portability and Accountability Act while it is regulated under the Criminal Law Amendment in the China, which prohibits the selling an illegal use of the personal information. In the context of UK, the medical devices market is regulated by the Medicines and Healthcare Products Regulatory Agency under Medical Devices Regulations 2002.

Market Size and Forecast

The total market size of the global wearable devices market is valued at USD 24.48 billion in the year 2019 and is expected to reach USD 27.17 billion in the year 2020. Its market value is expected to grow at a CAGR of 11.3% within the forecasted time horizon of 2020-2025.

Its market value is expected to reach USD 45.78 billion by the end of the year 2025. It is expected that the number of the wearable device users will reach 368.9 million by the end of the year 2024.

Based on geography

  • The North American region is leading the global market with a market share of almost 45.55% of the total global wearable devices market. The market size of this region is valued at USD 11.15 billion in the year 2019.
  • The European region accounts for the market share of almost 15.27% of the total global wearable devices market. The market size of this segment is valued at USD 3.74 billion in the year 2019.
  • The Asia Pacific region accounts for the market share of almost 30.55% of the total global wearable devices market. The market size of this segment is valued at USD 7.48 billion in the year 2019.
  • ROW stands for the rest of the world, which includes the Middle East Africa and the South America. This segment accounts for the market share of almost 8.61% of the total global wearable devices market. The market size of this segment is valued at USD 2.108 billion in the year 2019.

Based on the type of product

  • The wrist-wear segment is leading the market with a market share of almost 49.16% of the total global wearable devices market. The market size of this segment is valued at USD 12.03 billion in the year 2019.
  • The neck-wear segment accounts for the market share of almost 4.16% of the total global wearable devices market. The market size of this segment is valued at USD 1.01 billion in the year 2019.
  • The eye-wear & head-wear segment accounts for the market share of almost 23.05% of the total global wearable devices market. The market size of this segment is valued at USD 5.64 billion in the year 2019.
  • The foot-wear segment accounts for the market share of almost 13.05% of the total global wearable devices market. The market size of this segment is valued at USD 3.19 billion in the year 2019.
  • The body-wear segment accounts for the market share of almost 8.33% of the total global wearable devices market. The market size of this segment is valued at USD 2.04 billion in the year 2019.

Based on the application

  • The consumer electronics segment is leading the market with a market share of almost 45% of the total global wearable device market. The market size of this segment is valued at USD 11.01 billion in the year 2019.
  • The health care segment accounts for the market share of almost 36.76% of the total global wearable devices market. The market size of this segment is valued at USD 9 billion in the year 2019.
  • The enterprise segment accounts for the market share of almost 6.53% of the total global wearable devices market. The market size of this segment is valued at USD 1.6 billion in the year 2019.
  • The industrial segment accounts for the market share of almost 4.49% of the total global wearable devices market. The market size of this segment is valued at USD 1.1 billion in the year 2019.

Market Outlook

The global wearable devices market is expected to grow at the CAGR of 11.3% within the forecasted time period of 2020-2025 because of rising adoption of internet connected devices, rising global smartphone penetration rate, rising chronic health concerns & increasing need for health monitoring, and consumer adoption & willingness towards wearable devices. Its market value will reach USD 45.78 billion by the year 2025.

Technology Roadmap

The major technological changes occurring in this global wearable devices market are artificial intelligence enabled-devices, MEM sensors; GPS enabled devices, Semiconductor and microelectromechanical system, etc.

The development of the new wearable devices includes powered exoskeletons, wearable speakers, eSkin sleep and lounge, etc. The innovative technological trends are driving the growth and development of the global wearable devices market.

Distribution Chain Analysis

The key stakeholders involved in the operation of this global wearable devices market are wearable devices manufacturers, software and application developers, distributors, retail & online sales, and end-users.

At first, the wearable devices are manufactured and assembled with the software & applications for its control and operation. The wearable devices are available through the online and retail sales to the consumers in the sector of healthcare, electronics, industrial, enterprise, and other.

Competitive Factors

The key market players engaged in this wearable device market are competing for the product portfolio expansion, high investment in research and development activities, mergers & acquisitions, and collaborations.

For instance, Alphabet signed agreement to acquire Fitbit for almost USD 2.1 billion in the year 2019. Xiaomi has launched Mi Band 4 (a next generation fitness tracker) that supports Xiao AI voice assistant and features more prominent display. Nuheara (smart hearing company) has launched IQbuds2 MAX earbuds with hybrid active noise cancellation feature.

Key Market Players

The key market players engaged in the operation of its global wearable devices market are Fitbit, Apple, Adidas AG, Alphabet, Xiaomi, Huawei Device, Garmin, Sony Corporation, and HTC Corporation. Short profile of the key market players engaged in the global wearable devices market are discussed as follows:

Fitbit Inc: It is the US-based company engaged in the sector of the consumer electronics and fitness. Its major products are activity trackers, smartwatches, and other wearable devices. The revenue of this company is valued at USD 1.42 billion in the year 2019.

Apple Inc: It is one of the US-based big technological company engaged in the development and sale of the consumer electronics, computer software, and online services. The revenue of this company is valued at USD 260.17 billion in the year 2019.

Adidas AG: It is the Germany-based multinational company engaged in the manufacture of shoes, clothing and accessories. Its major products are footwear, sportswear, sports equipment, and toiletries.

Xiaomi Corporation: It is the Chinese multinational company engaged in the manufactures of the smartphones, mobile apps, laptops, earphones, fitness bands, and other devices.

Garmin Ltd.: It is the US-based multinational company engaged in the sector of development of GPS technology for automotive, marine, outdoor, and sport sectors. Its major products are GPS receivers, avionics, and wearable technology.

Sony Corporation: It is the Japan-based multinational company engaged in the sector of consumer electronics, semiconductors, video games, films, TV shows, Music, computer hardware, telecommunication equipment and robots.

Strategic Conclusion

The global wearable devices market is expected to grow at the CAGR of 11.3% within the forecasted time period of 2020-2025 because of rising adoption of internet connected devices, rising global smartphone penetration rate, rising chronic health concerns & increasing need for health monitoring, and consumer adoption & willingness towards wearable devices.

However, issues of data privacy & cybersecurity, high cost of the development of the wearable device applications, and low battery life of the wearable devices might restrain the growth and development of this market.

References

Appendix

  • IoT= Internet of things
  • UVA= Ultraviolet radiation A
  • UVB= Ultraviolet radiation B
  • GPS= Global Positioning System
  • USD= United States Dollar
  • CAGR= Compound Annual Growth Rate

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