The Wearable Electronics Market size was valued at US$ 116.2 billion in 2021 and is anticipated to reach the valuation of US$ 118.05 billion by 2027 and is predicted to register a CAGR of 14.6% during 2022-2027.
Wearable Electronics Market Scenario:
Wearable electronics are electrical devices with advanced features. Wearable devices are wireless connectivity and portable computing devices that are worn on the body. End-users can utilise these devices to incorporate computers into their regular activities and take use of enhanced features and qualities. Smart goggles, finger-worn scanners, wrist wears such as wrist bands and electronics watches, footwear such as fitness and sports shoes and athletic shoes, and other products such as neckwear and headbands are examples of wearable electronics devices. Because of the introduction of MEMS sensors, wearable technology has progressed. The impact of cell phones being used everyday, on the GPS, or the IMU, is driving the incorporation of these sensors into a specialised wearable device.
Since wearable producers like Apple and Fitbit are introducing health-monitoring capabilities that appeal to older people and keep them updated on their health condition in real-time, smartwatches are experiencing a spike in new users, including the elderly. The category is also on the rise, thanks to added characteristics such as a brand that fits a daily lifestyle. To preserve their sales, strong brands like Apple and Fossil keep their prices constant with typical watch price bands. Many additional luxury watchmakers, like as TAG and Armani, have entered the category as a result of Google's WearOS.
Furthermore, the gaming sector is growing all around the world. Nintendo and Microsoft, for example, have recognised the promise of augmented reality and are making headway. Many gamers believe that simply holding a smartphone is insufficient for AR gaming. To some extent, console devices can compensate for this.
Wearable Electronics Market Drivers:
Wearable technology is expected to grow in popularity due to the rapid rise in need for multimedia devices like smartphones, as well as the increased adoption of fitness trackers and health-related wearables.
Consumers prefer a single small device that can handle all of their computing and monitoring needs. This desire opens the door to the creation of multi-function and hybrid wearable gadgets that provide consumers with convenience while also combining the capabilities of multiple devices into a single small device. In the future years, the volume of such gadgets is likely to rise. Cellular technologies have steadily evolved from the Plain Old Telephone System (POTS) to cellular gateways and mobiles to become a leading channel for data transfer and communication. This aspect is predicted to provide a favourable opportunity for businesses to introduce wearables that are connected to mobile devices like smartphones and tablets. Thus increasing the market volume for this segment.
During the forecast period, the increased popularity of these gadgets among recreational fitness enthusiasts and professional athletes is expected to fuel demand for wellness and fitness products. Growing consumer awareness of the benefits of wearable electronics, increased smartphone penetration, and rising disposable incomes are all expected to benefit the market. Several market participants' R&D endeavours are expected to add to the industry's growing growth possibilities.
Consumers are spending more on utilities as a result of rising incomes, changing lifestyles, improving standards of living, and more customer awareness about the need to adopt energy-efficient goods, all of which are boosting market growth. Furthermore, market growth prospects are created by technology advancements and the increased availability of economical and efficient products.
Wearable Electronics Market Restraints:
The lack of a robust and sustainable battery system that could be easily worn without sacrificing the device's compactness and convenience of use is a major limiting issue in the wearable technology market's growth. The largest problem in wearable computing is addressing the power need and managing power consumption and battery recharge as all computer devices become one wearable device. With the rapid expansion for wearable devices, it's critical to not only achieve the power efficiency requirement cost-effectively, but also to regulate power usage. This factor is predicted to have a significant market restraint.
The initial high cost of these products will limit the market's growth in various ways. The consumer electronics industry is a fast-paced industry. Market players, on the other hand, risk significant price erosion because, when new technology develops, older technology-based items lose their value. Technology advances at an astounding rate, and keeping up with all these innovations is a major challenge for businesses because the technology changes by the time engineers create a prototype. New technologies are being developed at a quick rate and are being implemented into a variety of products as a feature. Consumers also desire more feature-rich and technologically advanced products.
Thus, to keep up with the rapid pace of the Wearable Electronics Market, organisations must adopt new technologies and shorten design and production cycles.
Recent Developments in the Wearable Electronics Market:
Apple Inc. will release the Apple Watch Series 6 and Apple Watch SE, two iPad models, in September 2020, the first fitness experience created for Apple Watch, which will bring substantial advancements in wellness and health features to Apple TV, iPad, and iPhone. With a new feature that measures blood oxygen saturation for a deeper understanding of fitness and wellness, Apple Watch Series 6 enhanced the health capabilities of earlier Apple Watch models.
Samsung Electronics Co., Ltd. introduced the first-ever titanium Galaxy Watch3 in September 2020, featuring premium materials and a striking distinctive rotating bezel. The watch is water resistant and has military-grade toughness. Samsung Pay is also included inside the watch, allowing for contactless payments.
Wearable Electronics Market Segmentation:
By Product:
Due to the rising popularity of smartwatches among millennials, the wrist-wear product sector is likely to dominate the wearable technology market over the forecast period. During the forecast period, the Wearable Electronics Market's headwear and eyewear segment is predicted to grow at the fastest rate. The headgear and eyewear category includes items like augmented reality and virtual reality, which are expected to rise in a variety of high-end applications like the industrial sector, video gaming, and entertainment, among others.
By Application:
During the projected period, consumer electronics is expected to be the largest market for wearable technology. The growing need for wearable scanners and computer devices in warehouses, logistics, and other operations where speed and efficiency are critical is largely responsible for this increase.
Wearable Electronics Market Regional Analysis:
Over the projection period, North America is expected to account for the bulk of the global market. It is renowned as the global centre for all key technology advancements. Moreover, a number of industry participants are taking steps to expand their regional footprint and improve their business processes. By 2027, the regional market is expected to reach USD 36.67 billion. Some of the primary drivers of the regional market are the rise in disposable incomes and the rising acceptance and popularity of connected devices.
Furthermore, the Asia Pacific wearable technology market is predicted to increase significantly owing to rise in purchasing power, a increasing number of tech-savvy people, and the existence of many key market rivals in the region. Due to cheap operating and labour costs, several industry companies are expected to relocate their manufacturing operations to Asia Pacific. Furthermore, the region's growing urban population is likely to boost wearable device usage, boosting market growth.
Wearable Electronics Market Key Players:
Frequently Asked Questions
Data privacy concerns, a high initial cost, and a short battery life are all potential threats to the market's growth prospects over the projection period.
Product portfolio expansion, mergers and acquisitions, partnerships, geographic expansion, and collaborations are some of the primary growth methods used by wearable electronics market participants.
The segmentations available for the wearable electronics market are product, application, technology and region
The wearable electronics market is anticipated to reach the valuation of US$ 118.05 billion by 2027.
Increased demand for smartphones and multimedia devices, as well as infrastructure upgrades in the mobile industry and increased disposable income in developing countries, are all driving the wearable technology market forward.
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