Smartwatch Market Size, Share & Industry Analysis, By Operating System (iOS, Android, and Others), By End-User (Male and Female), By Application (Running, Checking Notifications, Swimming, Cycling, and Others), and Regional Forecast, 2024-2032

The global smartwatch market size was valued at USD 29.31 billion in 2023. The market is projected to grow from USD 33.58 billion in 2024 to USD 105.20 billion by 2032, exhibiting a CAGR of 15.34% during the forecast period. North America dominated the smartwatch market with a market share of 38.66% in 2023.

The growing consumer inclination toward technological devices owing to incredible attributes to help simplify their life triggers the product demand. The device comes with multiple positive aspects, including navigation, fitness tracking, notification checking, and others, which help users ranging from athletes and tech enthusiasts to regular users. Nowadays, key brands are offering innovative wristwatches to influence people to buy such items. These brands’ efforts will offer newer market growth opportunities. For instance, in August 2022, Xiaomi, a Chinese manufacturer of consumer electronics products, launched their new series of smartwatches ‘S1 Pro’, with Real Time OS (RTOS) and several advanced features.

The COVID-19 pandemic had a notable impact on the global industry. Lockdown measures and social distancing protocols led to the temporary closure of retail stores and reduced foot traffic in shopping malls, affecting the sale of smartwatches through traditional retail channels. However, despite the challenges, the pandemic highlighted the importance of health and fitness tracking, driving the demand for smartwatches with advanced health monitoring features. Consumers became more health conscious and sought wearable devices that assist in health and fitness tracking, including heart rate monitoring, sleep tracking, activity levels, and sleep patterns and even detect potential COVID-19 symptoms.

Smartwatch Market Trends

Shifting Focus of Key Brands toward Kids to Spike Product Demand

Key companies in the industry are increasingly shifting their attention toward kids by increasing the manufacturing of products that are designed to specifically target them, a transition that will likely increase the global smartwatch market share over the forecast period. The growth is due to a large number of parents becoming increasingly aware of how it could help enhance the lives of their children by allowing them to be more physically active. For instance, June 2021 witnessed the launch of the GOQii smart vital junior wristwatch. The watch was specifically designed for kids and comes equipped with 18 activity modes.

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Smartwatch Market Growth Factors

Growing Popularity of Fitness among Youth and Urban Population to Drive Market Progress

The soaring popularity of fitness in youth and their increasing adoption of fitness tracking devices fuels the global smartwatch market growth. The escalating urban population across the globe is likely to propel the product demand owing to more exposure and awareness of multiple types of smart devices. For instance, according to the United Nations (UN), in September 2021, it has been estimated that ~56.61% of the world’s population dwelled in urban areas and is expected to increase to 68% by 2050.

High Spending Power of Developed Economies to Fuel Product Demand

The high consumer expenditure of developed economies has played an essential role in spiking the smartwatch sales owing to its ability to help boost the spending on smart devices, including smart wearables. Additionally, the growing production of kids’ smartwatches by companies will support the market growth. Moreover, countries of the European Union possessing a high per capita income are also acting as a propelling factor that is driving the market development. It is because high per capita income could encourage more consumers to intensify their shopping for smart wearables. For instance, as per data published by Trading Economics, in December 2021, the GDP per capita stood at USD 115,683 in Luxembourg, followed by Ireland at USD 102,496 and Switzerland at USD 71,033 in the same year.

RESTRAINING FACTORS

Presence of Substitute Products May Restrain Market Growth

The substitute products such as regular watches have a strong existence in the market and hold a steady sentimental value among consumers across the globe. Traditional wristwatches, particularly those with premium designs and craftsmanship, continue to serve as substitutes for smartwatches. While these watches offer advanced features and functionalities, some consumers prefer the classic look, simplicity, and the battery life of traditional watches, which limits the market expansion. Therefore, inclination of a large number of high-income as well as middle- and low-income consumers toward luxury watches may hamper the market growth.

Smartwatch Market Segmentation Analysis

By Operating System Analysis

iOS Segment to Hold Dominant Share due to Apple’s Robust Market Penetration

Based on operating system, the market is segmented into iOS, Android, and others.

The iOS segment is anticipated to hold the dominant market share on account of the strong penetration of Apple products made of advanced iOS operating systems in the global wristwatches market. Furthermore, technological advancements in iOS operating systems are favoring segmental growth.

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Android is forecast to emerge as the fastest growing segment over the forecast period. This is mainly due to focus on a wider range of consumers and manufacturing varieties of products that are available even for people with lower power purchasing ability. Affordability also plays a key role in accelerating product sales within the android category, notably across Asian markets.

By End-User Analysis

Male Segment Leads Due to the Massive Presence of Tech Enthusiast

Based on end-user, the market is fragmented into male and female.

The male segment accounts for the largest share due to a large male population being fascinated by tech products. In addition, males are willing to make a higher spending compared to women.

The women segment also witnessed substantial growth over the past years. This is owing to key market players’ increasing manufacturing of products specifically designed for women. For instance, in March 2021, Garmin Lily launched a women's wristwatch that also comes with a pregnancy tracker.

By Application Analysis

Significant Consumer Preference toward Running to Drive Running Segment Growth 

Based on application, the market is segmented into running, checking notifications, swimming, cycling, and others.

The running segment accounts for the largest market share as running, the most popular and easy exercising activity, requires the use of smart wearables to track progress. Additionally, growing awareness regarding the health benefits of running among youngsters is further supporting the wristwatch demand for running purposes globally.

Checking notifications, swimming, cycling, and other segments have also experienced a significant development owing to working professionals increasingly using the device for alert notifications. Furthermore, people participating in outdoor activities, such as swimming and cycling, increasingly use smart devices to help improve their skills. Cycling is gaining prominence as the fastest-growing segment, driven by an expanding number of amateur and professional cyclists worldwide, notably in European countries. At a macro level, improving cycling infrastructure across countries encourages more individuals to take up cycling and track their performance.

REGIONAL INSIGHTS

By geography, the market has been studied across Europe, North America, Asia Pacific, South America, and the Middle East & Africa.

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North America held the leading share of the market, with a size of USD 11.33 billion in 2023 as the region’s population is making massive expenditure on consumer units. For instance, in September 2021, the U.S. Bureau of Labor Statistics claimed the U.S. average yearly expenditure for every consumer unit was USD 61,334. The elderly population making high expenditure on tech products is expected to have a notable impact on the consumption rate.

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Europe is anticipated to depict significant growth owing to the low youth unemployment rate, giving end-users a higher spending ability. The trend is aided by the growing number of youth consumers being inclined toward smart wearable devices compared to the rest of the population. In addition, the high physical activity participation rate in the European Union countries is expected to provide a vital contribution to the growing demand as it assists in monitoring and helps enhance their performance.

Asia Pacific is projected to have a vital presence in the global market. Rising disposable income across the emerging economies is likely to foster the product demand. In addition, the escalating production of affordable smart wearables, which is mainly targeting middle and lower class populations, is likely to positively influence the smartwatch market trends in Asia Pacific. For instance, in October 2021, Xiaomi launched an affordable wristwatch that comes with a slim bezel and 2.5 D glass.

South America is projected to show considerable growth owing to the expansion of e-commerce businesses, encouraging more people to increase their expenses on smart electronic goods. For instance, according to the International Trade Administration (ITA), in 2023, Brazil, the largest economy in Latin America, has been witnessing rapid e-commerce expansion, projected to grow at a rate of 14.3% and anticipated to exceed USD 200 billion by 2026.

The Middle East & Africa market growth is due to the rising economic progress and increasing disposable income of the population in the region. For instance, according to the World Bank, the GDP per capita of the Middle East and North Africa hit USD 7,569.1 in 2021 from USD 6,491.5 in 2020.

KEY INDUSTRY PLAYERS

Key Players are shifting toward Production of Health-Related Device to Gain a Competitive Edge

The emphasis on health-related features in smartwatches contributes to raising awareness about personal health and wellness among consumers. As people become more health-conscious, there is an increased demand for wearable devices that can provide insights into various aspects of health and fitness, driving the product adoption as health monitoring tools.

Therefore, companies operating in the market are progressively shifting toward manufacturing health monitoring watches. This is anticipated to help surge the sales as more consumers are increasingly putting efforts into owning a device that provides personal assistance to the users in upholding their health. In September 2021, Mobi Health News declared that the Withings band was launching its new cardiac-monitoring wristwatch in France, Germany, and the U.K.

List of Top Smartwatch Companies:

• Apple Inc. (U.S.)


• The Samsung Group (South Korea)


• Garmin Ltd. (U.S.)


• Fitbit LLC (U.S.)


• Huawei Technologies (China)


• Fossil Group, Inc. (U.S.)


• Polar Electro (Finland)


• ASUSTek Computer Inc. (Taiwan)


• LG Electronics (South Korea)


• Xiaomi Inc. (China)

KEY INDUSTRY DEVELOPMENTS

• May 2024 – ACwOLifestyle Private Limited, an Indian manufacturer of smartwatches and wireless earbuds, announced the launch of the ACwO FwIT Play smartwatch for women. The ACwO FwITPlay offers Bluetooth calling, a 1.75-inch display, and SOS features.


• April 2024 – The Samsung Group, a South Korean manufacturer of electronic products, launched the GALAXY WATCH 7 ULTRA Smartwatch in the Chinese market. The product line featured an advanced blood glucose monitoring function and was marketed as ideal for diabetes patients.


• January 2024 – Apple Inc., a U.S.-based multinational technology company, launched the Apple Watch Series 10, an upgraded version of wearable devices in the Indian market.


• September 2023 – Apple Inc. launched carbon-neutral lines of Apple Watch Series 9, Apple Watch Ultra2, and Apple Watch SE products globally.


• July 2023 – Garmin Ltd, a U.S.-based manufacturer of consumer electronics products, launched two outdoor smartwatch series in India, the Epix Pro Series and the fēnix 7 Pro. These watches were designed to meet the requirements of adventurers, athletes, and fitness enthusiasts.

REPORT COVERAGE

The market research report provides a detailed analysis of the industry and focuses on key aspects such as leading companies, end-users, and key operating system. Besides this, the report lists insights into the current market trends and highlights key industry developments. In addition to the aforementioned factors, the global market outlooks several factors that have contributed to the growth of the market in recent years.

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Report Scope & Segmentation