Wearable technology refers to electronics devices that are designed to be worn anywhere around the body thereby enabling hands free operations. Wearable technology products have gained popularity over the past few years, with advancements in technology and growth in the trend of innovation. From healthcare to military & defense sector, this technology is prevalent due to ease of use, flexibility, and convenience.
It also saves time, enables real-time data monitoring, and offers operational efficiency. Fitness tracking, security profiling, and network monitoring are some of the major factors contributing towards the higher adoption of wearable technology. The wearable technology market is expected to reach a market value of $57,653 million by 2022 from $19,633 million in 2016, growing with a notable CAGR of 16.2% during the forecast period.
Increase in healthcare awareness, portable and convenient usage of wearables, and entry of large smartphone manufacturers are expected to drive growth in the wearable technology industry. Demand for sophisticated devices with innovative features further supplements the market growth.
However, factors such as security concerns and high cost of manufacturing in the global wearable technology industry are likely to hamper the market growth. Moreover, due to increase in smartphone penetration, the demand for wearable technology is expected to grow at a faster rate. Furthermore, the introduction of smart shirts and smart rings, owing to rapid technological advancements are expected to supplement the growth of wearable technology market.
The global wearable technology market is segmented based on devices, product type, application, and geography. Based on devices the market is segmented into smart watches, smart glasses, activity trackers, smart clothing, and others. The smart watch market is expected to grow with the fastest CAGR of 19.9% during the forecast period and is likely to reach a market size of $17,883 million by 2022. Factors such as large players entering the global market, advancement in research and development, higher manufacturing cost, demand for high end devices, increasing competition, and standardization will have a significant impact on the smart watch market.
Based on product type the wearable technology market is segmented into wrist wear, eyewear, hearables, body wear, and neckwear. Based on application, the wearable technology market is segmented into lifestyle, healthcare, consumer application, defense, fitness and sports, entertainment and enterprise, and industrial. Based on geography, the global wearable technology market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
Key players operating in the market include Apple Inc., Fitbit, Inc., Garmin Ltd., Adidas AG., Nike Inc., Samsung Electronics Co., Ltd., Sony Corporation, Huawei Technologies Co., Ltd., LG Electronics Inc., and Motorola Solutions Inc. The constant innovation by the market players and introduction of new technologies intensifies the inter-market rivalry.
The key strategies adopted by various players in the wearable technology market are analyzed based on the competitive scenario of the market. For instance, in September 2016, Garmin international Inc. a unit of Garmin Ltd., has launched the vivofit jr. which is an activity tracker for kids to motivate and encourage them for fitness. The design for this product is durable, and has a long battery life. Many companies are collaborating with leading jewelry brands to enhance the appearance of wearable technology. For instance, in January 2016, Huawei and the jewelry brand Swarovski Zirconia, launched a new range of smart watches. These are available in two stylish options made exclusively for women. The watch comes with Italian leather straps and is compatible with both Android and IOS.