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Wearable Devices Market by Product Type (Smart Watches, Fitness & Activity Tracker, Smart Eyewear, Smart Clothing, Medical Devices, Others), by End-use Industries (Fitness & Wellness, Healthcare & Medical, Infotainment, Enterprise & Industrial, Military & Defense, Others), by Distribution Channel (Online Retailing, Exclusives Stores, Multi-brand Stores, Hypermarket, Pharmacies) - Growth, Future Prospects & Competitive Analysis, 2018 – 2026

Industry Outlook

Wearable devices recorded sales of 130.8 million units in 2017 and are projected to witness double-digit growth of 16.5% from 2018 to 2026. Wearable devices can be defined as clothing or accessories with advanced technologies that include products such as smartwatches, fitness and activity trackers, smart eyewear, smart clothing, medical devices, and others. These devices are designed to be worn in daily life routines and are mostly available with wireless connectivity, a processor, and a user interface on the device itself or on the paired device. Smartwatches were the dominant segment, accounting for over 40% of the total shipment in 2017, while fitness and activity trackers were projected to remain the most popular and fastest-growing segment during the period from 2018 to 2026. Growth in the fitness and activity tracker segment can be attributed to their function of monitoring heart rate and tracking body activity, as well as their ease of usability, portability, and integration into everyday life.

Rising consumer awareness of wearable devices in key markets such as China, the UK, and the U.S., coupled with technological advancements in software and hardware components and their adoption in fitness & wellness, healthcare & medical, military & defense, and other sectors, are augmenting the growth of the wearable devices market. Moreover, increasing penetration of smartphones and their compatibility with wearable devices, growing preference for wireless connectivity among healthcare providers, increasing awareness of fitness and health, and high penetration of IT in end-use industries such as healthcare, military and defense, enterprise and industrial, etc. are some other factors supplementing the growth of wearable devices across the globe. Although the wearable devices market has a positive growth outlook, the premium cost of wearable devices, limited battery life, and data security issues are some of the factors expected to hinder the market growth during the forecast period.

North America is the largest market for wearable devices and is expected to dominate global demand over the forecast period owing to technological developments. Asia Pacific, on the other hand, is expected to grow rapidly due to low production costs in India and China. Since user-friendly technological innovation is the key to success in the wearable devices market, players operating in the market are striving to cater to unmet consumer needs such as long battery life, durability, and low cost by consistently introducing new products in the market, making new product development a preferred strategy of wearable device manufacturers.

Market Synopsis

The infotainment and fitness and wellness industries drive demand for smartwatches, making it the market leader.

Smartwatches were the leading product type segment during 2017–2018. The segment is also projected to witness robust growth during the forecast period owing to increasing demand from the infotainment and fitness & wellness end-use industries. Smartwatches accounted for over 40% of total wearable device sales across the world in 2017. Smart Watches are equipped with various cameras, an accelerometer, a thermometer, a compass, maps, a calculator, a picture gallery, a music player, an SD card, a rechargeable battery, a speaker, and various other user-friendly features. The advent of Apple Inc. into the smartwatch segment disrupted the market in terms of value and volume.

Fitness & Activity Tracker and Medical Devices product types are also projected to witness high growth during the forecast period on account of rising health awareness among consumers and the rising prevalence of lifestyle diseases such as hypertension, obesity, and diabetes, fueling demand for continuous monitoring of various physiological factors that include calorie intake, blood sugar levels, and blood pressure. Moreover, increasing penetration of smartphones and smartphone-linked healthcare applications, coupled with the growth of remote patient monitoring, are a few other factors propelling the growth of this segment.

Fitness & Wellness Dominated the End-Use Industry Segment Owing to Rising Lifestyle Diseases Globally

In 2017, the Fitness & Wellness segment accounted for more than 30% of total wearable device sales, followed by Healthcare & Medical, and Infotainment.Wearable devices used in the fitness and wellness industry include smart watches, smart clothing, smart glasses, sleep sensors, heads-up displays, foot pods and pedometers, fitness and heart rate monitors, activity monitors, and others. Rising average life expectancy, a higher ratio of seniors, and an increased prevalence of chronic disease are expected to drive the Fitness & Wellness segment in the coming years.

In 2017, the Infotainment, Healthcare, and Medical segment closely followed the Fitness & Wellness segment in terms of market value. The Healthcare & Medical segment includes the following devices: continuous glucose monitoring, insulin pumps, blood pressure monitors, drug delivery products, defibrillators, patches, smart glasses, hearing aids, and others. The Healthcare & Medical Devices segment is projected to witness significant growth during the forecast period.

Online retailing is projected to witness robust growth during the forecast period.

In 2017, Exclusive Stores had the highest share of total wearable device sales, followed by Multi-brand Stores and Online Retailing. Increasing demand for wearable products in retail outlets in developed economies is boosting the demand for this segment. With an objective to improve consumers’ experience with the brand, companies aim to boost their market by using exclusive retail outlets. These stores offer not only various products but also provide excellent post-sale services. The growth of this segment is attributed to the fact that consumers in exclusive stores experience a more intimate and personalized shopping experience compared to online retailing.

Online retailing is identified as the most popular and fastest-growing distribution channel for wearable devices. Online retail primarily refers to the various e-commerce stores that display various products with special offers and price tags and where consumers can purchase these products with a simple payment gateway via the cart system. Online platforms allow consumers to find the best product for their needs without having to physically visit a store to do so. Hence, the convenience factor for consumers and the rising penetration of online shopping are expected to drive the online retailing segment during the forecast period.

End-use industries in developed economies are expected to drive market growth.

In terms of value and unit shipment, North America held the largest market share of more than 35% in 2017, followed by Europe and Asia-Pacific. North America’s wearable devices market is mainly driven by huge demand from U.S. end-use industries. Factors such as the growing prevalence of chronic diseases and obesity, the increasing application of remote patient monitoring and home care, the aging population, the increasing number of professional athletes, and clinical and military research are propelling the demand for wearable devices in the region.

Asia-Pacific is projected to witness the fastest CAGR during the forecast period. Increased government budgets for the healthcare sector, an increasing geriatric population base, rising disposable income, and rapid economic growth are expected to boost the demand for wearable devices in the region.

In the fourth quarter of 2017, Apple takes the lead in the wearable device market.

Because of a surge in smartwatch shipments around the world, Apple is the market leader in the smartwatch segment. The activity and fitness tracker segment is dominated by two giants: Fitbit and Xiaomi. Product innovation and new product development are among the preferred strategies adopted by key players to acquire more shares and get an edge over other players in the wearable devices market. For instance, Samsung and Huawei are launching new wearable devices in the Middle East and Africa region to acquire a greater share and strengthen their foothold in the region, which is growing at a CAGR of over 15% annually. Key manufacturers of wearable devices in the market include Apple, Samsung, LG, Fitbit, MI, Nike, Flex, Sony, Garmin, Huawei, Eurotech, Abbot, and Medtronic, among others.

Periods of History and Forecast

Each market segment is analyzed in our study for the period of 2016 to 2026, with 2017 as the base year, while the period from 2018 to 2026 is considered for the CAGR calculation.

Report Scope

The report provides a comprehensive overview of the global wearable devices market by categorizing it into the following segments:

This research report describes leading continents and their major countries, along with profiles of key players operating in the overall market and their planned developments. Our report further defines the overall market dynamics, such as drivers, challenges, and

opportunities prevalent in the market, to understand the global wearable devices market more explicitly. Our in-depth quantitative and qualitative analysis of each segment up to the country level highlights investment opportunities and revenue pockets in the market.

Key questions are answered in this report.

  • What are the current market trends in the wearable devices market, and what are the most profitable opportunities for players?
  • Which are the most attractive region and segments for investment?
  • What are the market size and trends in emerging markets?
  • Which are the prime end-use industries for wearable devices across different geographies?
  • Which are the major product types of wearable devices and their market sizes?
  • Which is the leading distribution channel in the wearable device market?
  • Which are the leading players and their market positions?

Frequently Asked Questions:

The market for Wearable Devices Market is expected to reach US$ XX Mn by 2026.

The Wearable Devices Market is expected to see significant CAGR growth over the coming years, at 16.5%.

The report is forecasted from 2018-2026.

The base year of this report is 2017.

Apple, Samsung, LG, Fitbit, MI, Nike, Flex, Sony, Garmin, Huawei, Eurotech, Abbot, and Medtronic are some of the major players in the global market.

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Trusted By
Godaddy
Published Date:  Aug 2018
Category:  Consumer Goods
Report ID:   59271
Report Format:   PDF
Pages:   120
Rating:    4.3 (60)
Delivery Time: 24 Hours to 48 Hours   
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