Wearable Technology Market forecast to reach $64.7 billion by 2025

The Market for Wearable Technology is forecast to reach $64.7 billion by 2025, growing at a CAGR of 16.8% from 2020 to 2025. The key factors contributing to market growth include customer demand for sophisticated gadgets, improved growth opportunities for next-generation displays in wearable devices, and increased internet awareness of Internet of Things and connected devices. The market for wearable technology has been witnessing increased adoption due to factors such as ease of use, flexibility and convenience. These devices also offer real-time data monitoring, operational performance, and health tracking that further supports growth in the sector. Key Takeaways • The wearable technology market in North America is highly dominated by the increasing need for wearable technology in healthcare applications and the rising deployment of fitness trackers and health-related wearables in the US. • The launch of wearable operating systems beyond Apple and Google, and the increasing move to the wearable interface and analytics are driving market growth significantly. • The changing lifestyle and the growing need for fitness trackers along with the convergence of wearable cameras and virtual reality further accelerate the growth of the market. • The main challenge for wearable technology is the concern for security and privacy, which increases the vulnerability of hackers to cyber-attacks, further hindering the growth of the wearable technology market. Product Type - Segment Analysis The product segment of wrist-wear held the largest share of wearable technology market in 2019. Wrist wearables are widely used these days because fitness monitoring devicesare becoming increasingly important. They are essentially computerized watches equipped with features such as making calls, surfing the internet and monitoring the user's health information. Wearable electronics items such as smart clothing, fitness trackers, smart jewellery etc. are equipped with operating systems that can be used for various devices and often provide advanced analyses with the aid of in-built technical capabilities. . Consequently, the growing use of smart watch phones and wristbands as a style statement also propels wearable technology market.  By Application - Segment Analysis By application, wearable technology market is segmented intoFitness and Wellness, Healthcare, Infotainment, Defense, Enterprise and Industrial. Fitness and Wellness are anticipated to witness a significant growth rate of around 13.3%in the wearable technology market during the forecast period 2020-2025. As the consumer's lifestyle is changing, this has required the need for products that could easily provide their health information. Wearable technology such as fitness devices , smart clothing, smart health watches, and so on are gaining traction widely and is expanding the segment of fitness and wellness applications. In addition, the growing number of consumers wants to use smart health watches and bands to maintain their fitness which boosts the demand for wearable technology. In addition, the healthcare segment is also propelling the wearable technology market, owing to the growing need for intelligent clothing to boost healthcare practices. The use of smart clothing for health tracking and encouraging a healthier lifestyle further creates opportunities for wearable technology market. Geography - Segment Analysis North America is analysed to be the dominant region in 2019,with a share of around 40% followed by APAC and Europe. The innovation of smart devices, the need for more advanced wearable technologies and the low cost of smart wireless sensor networks are contributing to the growth of this region's wearable technology market. Continuous progress in smartwatch design and functionality further drives smart watch use in the US. In addition, the number of U.S. smartwatch users among adults is also reported to have reached 10% penetration in 2019. Additionally, it is estimated that about 31.5 million Americans between the 18-55 age group will use smartwatches by next year to drive the North American wearable technology industry. In addition, Tech giant Apple Inc.'s latest product, which is the product of a smart ring to power an iPhone, will also boost the development of the North American wearable technology industry. Drivers – Wearable Technology Market Increased Health Care Awareness Growing concerns about obesity and other chronic diseases have resulted in the adoption of wearable devices such as activity trackers and body tracking that provide information on the overall health of the body in real-time. Such wearable devices can provide information such as tracking heartbeat, cholesterol rates, calorie intake, sleep quality and quantity, oxygen levels , blood pressure, as well as other information that the body needs for day-to-day activities, thus driving the market. Growing Popularity for Smart Watches The increasing deployment of connectivity and digitalization has raised the need for wireless devices. This deployment has led to the need for wireless fitness and sports devices such as fitness trackers and smartwatches. Also, technological development has led to the introduction of Bluetooth smartwatch with in-built features, which can be connected easily to the mobile devices. These advanced Bluetooth smartwatches are highly portable which can provide information at any point of time and is also becoming a center of attraction to the customers which is further propelling the wearable technology market. As the majority of the adults between the age group 18-55 are widely preferring to wear smartwatches as a style statement which is leading to drive the wearable technologies market. Technological Advancements Deploying miniature sensors into fabrics, connectivity with smartwatches to communicate with social media, instore merchandising, and ease of payment with wearables are some of the major wearable technology developments. Adopting smartwatches has revolutionized watches in order to possess the ability of being multifunctional. Due to technical changes, consumers are increasingly likely to choose smart watches to their analog counterparts. Companies of wearable products spend heavily in R&D to develop optimal solutions to achieve a higher market share. Growth in technical innovations and developments are expected to drive the demand for wearable technology over the forecast period. Challenges – Wearable Technology market Increasing need for Safety, Security and Privacy Wearable technology is growing rapidly at a fast pace, but the main problem affecting this technology is the need for the consumer information to be protected, secure and private. As wearable devices are fitted with lithium batteries and connected in close proximity to the body, this can contribute to the potential risk to the customer. In addition, the user's protection and privacy is also hindered by the increasing danger from hackers, who can manipulate the data. Safety and privacy is also a common factor that restricts the use of wearable devices, as it also leads to a lack of end-to - end information security, poor communication and cyber-related vulnerabilities. Market Landscape Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Wearable Technologymarket. Wearable Technologydriver market is expected to be dominated by major companies such asAdidas Ag, Apple Inc., Fitbit Inc., Garmin Ltd., Google Inc., Jawbone, Nike, Inc., Samsung Electronics Co Ltd and Sony Corp. among others. Acquisitions/Technology Launches/Partnerships • In October 2019, Samsung launched the Galaxy Watch Active 2 and Galaxy Watch LTE in India. This new product is cost-effective which will attract the users in India and will further create growing opportunities for wearable technology market. • In January 2019, Omron Healthcare has launched highly-anticipated HeartGuide, the first wearable blood pressure monitor for monitoring the blood pressure and EKG capability using a single device. This wearable blood pressure monitor will highly influence the medical industry and will propel the wearable technology market in the coming years. • In March 2018, Garmin Ltd. announced an enhanced shock-resistant smartwatch “tactix Charlie”. This smartwatch offers specialized tactical functionality with advanced navigation and mapping facilities. This smartwatch also introduces full-color TOPO mapping, advanced performance metrics, and a wrist-based heart rate.