News The global wearable technology market continues to grow at a significant rate
According to the latest findings from Market Statsville Group (MSG), the global wearable technology market is projected to reach USD 113.2 billion by 2021 and USD 283.01 billion by 2027, growing at a CAGR of 16.50%.
Wearable technology products are electronic products or technical devices that can be worn on the body as accessories or as part of clothing. Wearables use sensors to connect.
According to the researchers, the major contributors to the wearable technology market are the increasing penetration of smartphones, mobile networks, mobile applications, computing, broadband connectivity, and others.
Industry dynamics, including IoT and consumer preferences
The Internet of Things (IoT) refers to the phenomenon that not only computers but also various devices with embedded computing capabilities are connected to each other. These include self-driving cars, drones, smart sensors and wearables connected to the home.
IoT technologies provide consumers with a range of new device and service options to enhance life and work. This is especially relevant to the subset of wearable devices known as IoT technologies.
IoT is also playing an important role in a wide range of healthcare applications, from chronic disease management to disease prevention. The availability of devices such as smartphones, tablets, and phablets is very high.
Currently, consumers prefer a single compact device that can integrate all computing and monitoring needs. This preference presents an opportunity to develop multifunctional and hybrid wearable devices that provide convenience to users and integrate the functionality of many devices into one compact wearable device.
The number of such devices is expected to increase in the coming years. Cellular technology has become the primary medium for data transmission and communication, with the steady transition from the plain old telephone system (POTS) to cellular gateways and mobile phones, the researchers note.
This factor is expected to provide a good opportunity for companies to launch wearable devices connected to mobile devices such as smartphones and tablets. The consumer electronics industry is a rapidly changing market.
However, MSG said market players face high price erosion because when a new technology is developed, products using older technology lose their relevance.
Wearable Technology and Different Market Segments
Wearable technology has played an important role in the fight against COVID-19. Many wearable device makers have begun adapting their products to help detect early signs of COVID-19. Some have also developed algorithms to measure coughing and breathing activity in general.
This could provide healthcare professionals with useful data on changes in a patient’s condition and allow for remote monitoring of less affected patients, reducing pressure on hospitals.
Important factors such as the impact of the virus on leading players, expected demand timelines, and industry supply chains have had an impact on the wearable technology market.
MSG defines the market by product, technology, component and application:
- Products: wristbands, glasses, ties, wearable cameras, etc.
- Technology: Computing Displays and Networked Sensors
- Components: Control, Memory, Battery, Sensing and Connectivity
- Applications: Fitness and Wellness, Consumer Electronics, Healthcare, and More
Market Insights by Geography
Geographically, the wearable technology industry is segmented into North America, Asia Pacific, Europe, South America, and Middle East & Africa (MEA).
In 2020, North America accounted for the largest share of the overall market due to the huge demand for wearable technology products and widespread awareness of wearable technology in the United States. The US is a prominent market with the largest market share in North America. North America is observed to dominate the market due to factors such as higher health concerns and product usage awareness.
The wearable technology industry is showing steady and substantial growth in Europe. Nonetheless, the wearable technology market in APAC is expected to witness positive growth over the forecast period owing to factors such as rising tech-savvy population and growing awareness.
Asia-Pacific countries such as China, India, etc. have high smartphone penetration and increased internet mobility, hence the report shows that the wearable technology market in these countries will witness sudden growth during the forecast period.