Wearable Technology Market Size, Share & Trends Analysis, By Type (Passive and Active), By Technology (IoT Based, AR and VR, and Others), By End Use (Health & Fitness, BFSI, Gaming & Entertainment, Fashion, Travel, Education, and Logistics & Warehouse), and Regional Forecast, 2024 – 2032

The global wearable technology market size was valued at USD 120.15 billion in 2023 and is projected to grow from USD 157.30 billion in 2024 to USD 1,695.46 billion by 2032, exhibiting a CAGR of 34.6% during the forecast period. North America dominated the global market with a share of 42.24% in 2023. The increasing consumer adoption in the healthcare and fitness sectors, driven by technological advancements (IoT, AR, VR), rising health consciousness, the growing demand for smart clothing, are driving wearable technology market growth.

Wearable technology is a form of device or electronic device that can be worn on the body (e.g., watch, jacket, belt), implanted in the body (e.g., tracker heart rate monitor, birth control chip), or in some cases, body tattoo (i.e. glowing or discolored tattoo).  Wearable technology is a collective term for a group of devices, designed to be worn all day long, such as smartwatches and fitness trackers. These devices are frequently called wearables for short. Increasing changes in consumer demographics, such as changes in lifestyle and inclinations, are expected to boost product demand, which in turn drives industry growth.

Demand for wearable devices dropped during the COVID-19 pandemic, leading to a decline in sales. A survey conducted in the first week of April 2021 received responses from a total of 3,312 individuals spanning across 15 countries exploring purchasing intentions. However, wearable technology devices were the least favored by respondents due to perceived redundancy during COVID-19 lockdowns. Moreover, global demand for wearable devices remained sluggish as individuals prioritized necessities over desire. Wearable devices such as smartwatches, bracelets, and trackers witnessed meager expansion amid the denial of permits for outdoor fitness activities, consequently resulting in decreased sales of these devices.

Wearable Technology Market Trends

Increasing Popularity of AR Wearable among Users is Considered Significant Trending Factor

Today, most wearable categories have a variety of products in the market to suit every budget.

Wearables will likely be directed toward the lifestyle rather than the business or technology market. For instance,

• Snapchat's Spectacles is tightly integrated with Snapchat's social sharing and messaging service. It allows users to upload images and videos directly on the app from the user’s device and is packed with fun AR technology that has garnered popularity.

Increasing integration of Augmented Reality (AR) and Virtual Reality (VR) technologies with digital and physical landscapes helps humans interact with the increasingly intelligent world around them. For instance,

• As per Engine Creative Agency Ltd, Augmented reality has gained huge popularity in the past few years owing to its capability to improve user experiences and offer possibilities for interaction.

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Wearable Technology Market Growth Factors

Rising Adoption of Smart Clothing Drives Market Growth

Smartwear is expected to witness increased mainstream consumer adoption. The move is often fueled by collaborations between fashion and tech brands, such as the Levi Commuter x Jacquard Jacket, which allows users to control their mobile phone to access Google services or use gestures to control the phone and track users’ Uber location. For instance,

• According to a research survey in 2023, the smart clothing sector holds a 9% share in the development of wearable trends, as people become aware of fitness and activity patterns.

Moreover, companies continue to see more specialized wearable technology applications, such as connecting the Nadi smart yoga pants to the wearer's smartphone app.  The advantage of clothing over small accessories, such as watches and bracelets, is that it covers a larger body area and may have deeper and more useful reasons.

RESTRAINING FACTORS

Limited Battery Life of Wearable Devices Restricts Market Growth

The lack of a reliable and efficient battery structure without negotiating the ease of use and compactness of wearable devices is a limiting factor in the market. The big challenges are power demand management, power consumption, and battery recharging. Cost-effectively controlling power consumption to achieve energy efficiency in portable devices is a factor anticipated to have a limiting impact on the market.  

Wearable Technology Market Segmentation Analysis

By Type Analysis

Rising VR Technology by Businesses and Consumers Contributing to Segmental Growth of Active Wearables

Based on type, the market is analyzed into active and passive. Active wearables are further studied into smart glasses, VR headsets, and smart watches. Passive wearables are further categorized into wristbands, rings, key rings, brooches, and clothing.

Active wearables accounted for over 77% of the market share in 2023, as VR technology has great potential for various applications, such as industrial prototyping, medical training, and education. Increasing investment in VR technology by businesses and consumers is expected to drive the demand. The rising adoption of virtual reality technology directly impacts the development of the virtual reality headset industry. For instance,

• According to the 2022 Consumer Attitudes Toward Technology Survey, 32% of respondents stated they own VR devices, while another 15% plan to purchase a device in this category within the next 12 months. 

Passive wearables are predicted to grow at the highest CAGR during the forecast period. The increasing elderly population drives demand for wearables that can monitor health and provide support for managing chronic conditions. For instance,

• The U.S. Department of Health and Human Services stated that 129 million people in the U.S. have at least one major chronic disease (e.g., cancer, diabetes, heart disease, obesity, hypertension).

By Technology Analysis

Continuous Advancement in Microelectronics Contributing to IoT-Based Segment Growth

The market is analyzed based on technology into IoT based, AR and VR, and others.

The IoT-based segment accounted for over 43.0% of the market share in 2023. Internet of Things (IoT)- based technology is a rapidly growing field that has the potential to revolutionize various industries and enhance our daily lives. Continuous advancement in microelectronics has allowed for the development of smaller and energy-efficient components. These advancements have enabled the integration of various sensors, processors, and communication modules into compact wearable devices. IoT-based wearables have found significant applications in the healthcare sector, including early detection of medical conditions, remote patient monitoring, and continuous health tracking, contributing to the growth of IoT-based technology.

Furthermore, the AR and VR segment is predicted to grow at the highest CAGR during the forecast period. These technologies have been gaining traction owing to advancements in display technology. Developing high-resolution and low-latency displays has significantly improved the visual experience in augmented reality (AR) & VR wearable devices. These advancements enable a more immersive and realistic virtual environment, leading to better user engagement.

By End-Use Analysis

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Rising Health Consciousness by Individuals to Scale Health & Fitness Sector 

Based on end use, the market is divided into health & fitness, BFSI, gaming & entertainment, fashion, travel, education, and logistics & warehouse.

Among these, the health & fitness segment held the major market share in 2023 owing to rising health consciousness. Individuals are increasingly aware of the importance of fitness and health. Wearable devices provide real-time data on vital health metrics, encouraging people to approach their well-being proactively. Additionally, rising remote health monitoring allows healthcare providers to track patients' conditions and progress without requiring them to be physically present at healthcare facilities. This is particularly valuable for patients with chronic illnesses and contributes to segment’s growth.

The fashion segment will record the highest CAGR during the forecast period. The intersection of fashion and technology has sparked creativity and collaboration between fashion designers and tech companies. This collaboration has resulted in wearable tech products that are both stylish and technologically advanced. Wearables in fashion often offer customizable features, allowing users to personalize their accessories according to preference, style, and functional needs.

REGIONAL INSIGHTS

The market is geographically studied across North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.

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North America held the largest wearable technology market share in 2023. The region is a hub for technological innovations and advancements. The region’s strong research & development capabilities have led to cutting-edge wearable devices incorporating advanced sensors, processors, and connectivity features. The growing focus on health and fitness in the region has fueled the demand for wearable devices that track and monitor various health metrics, such as heart rate, sleep pattern, and physical activity. Consumers in the region are keen on adopting technologies that can help them lead healthier lifestyles.

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The European market is anticipated to grow at a considerable CAGR during the forecast period. The region has a significant aging population, leading to increased interest in wearable devices that can assist in elderly care, remote patient monitoring, fall detection, and other healthcare applications. European countries have actively promoted digital health initiatives, including wearable technology, to improve healthcare outcomes and reduce healthcare costs. For instance,

• In June 2024, WHO/Europe launched its initiative for Data and Digital Health (SPI-DDH) in Copenhagen. This initiative will start its collective work to address and identify gaps in digital health ecosystems to support the building of safe and person-centred health systems in the WHO European region.

Asia Pacific is estimated to hold the highest CAGR during the forecast period. The region’s rapid urbanization and increasing disposable income have led to a growing demand. Asia Pacific is known for its strong mobile-first approach, with a high penetration of smartphones and mobile devices. The technology related to wearables integrated with mobile apps and services fits seamlessly into the region’s digital lifestyle, contributing to the region's market growth. Similarly, increasing integration of 5G technology into wearables used in different industries, such as manufacturing and logistics, ensures operational efficiency and improves employee safety.

The Middle East & Africa and South America are in a growing phase. Major cities in these regions have shown interest in developing smart city initiatives, which could potentially include the integration of wearable technology for various urban services and applications. Continuous product launches and model updates due to the increasing demand for wearable devices among customers are driving the demand for wearable technologies across the region.

Key Industry Players

Key Players Focus on Launching and Expanding Wearable Technology to Boost Revenue

Companies operating in the market, including Fitbit, Inc., Sony Corporation, Xiaomi, Huawei, and Fossil Group, are launching an updated series and version of wearables. Also, the high competition in the market is forcing SMEs to focus on upgrading strategies to strengthen their positions.

List of Top Wearable Technology Companies:

• Samsung Group (South Korea)


• Apple, Inc. (U.S.)


• Fitbit, Inc. (U.S.)


• Sony Corporation (Japan)


• Xiaomi (China)


• LG Electronics (U.S.)


• Huawei (China)


• Microsoft Corporation (U.S.)


• Garmin Ltd (Switzerland)


• Fossil Group (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• August 2024: Huawei announced the All-New HUAWEI TruSense system, which will power upcoming wearables. Huawei TruSense is a major breakthrough in fitness and health sensor technology.


• July 2023: Samsung Electronics and the National Sleep Foundation have stepped up their partnership to use new technologies to combat the rise in sleep disorders. The tech company will use NSF information to improve its wearable innovations. 


• April 2023: QMS MAS (Medical Allied Services) launched a wide range of products under the Q Devices banner. This event was organized in cooperation with Varanium Cloud Ltd. It also announced Vyana, a revolutionary medical wearable. Vyana objects meet the growing requirement for medical wearables that deliver timely assistance. It is designed to constantly monitor critical parameters, send immediate notifications, and communicate directly to users and their emergency contacts in the event of significant fluctuations. 


• April 2023: Xiaomi launched the Xiaomi Mi Band 8 smart wearable device. This band features a tablet-molded dial with an AMOLED display. The Mi’s Band 8 bands are attached to both sides of the wearable, unlike other models where the bands are wrapped around. 


• September 2022: Apple launched the new Apple Watch Series 8 and Apple Watch SE, upgrading two of the best-selling smartwatches with breakthrough performance and technology and significant security improvements. This Apple watch design is included in the Apple Watch Series 8, which features a large, durable, shatter-resistant front glass and an always-on Retina display.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the factors above, it encompasses several factors that contributed to the growth of the market in recent years.

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