Globally, the wearable technology market size was valued at $40.65billion in 2020, with an expected expansion in the annual growth rate of 13.8% from 2021 to 2028. With the increased prominence of connected devices and the Internet of Things, the rapid growth of the technologically literate population in the world is expected to increase the demand for wearable technology in no time.
In addition, an increase in the global prevalence of obesity and other chronic diseases has necessitated the use of wearable products by numerous patients. This is because these products help track and monitor body activities while also providing real-time information on the overall wellbeing of the user. These devices provide information related to daily activities, physiological data bordering around the quality of sleep, blood pressure, oxygen concentration, cholesterol levels, heart rate, and calories burnt daily.
At the start of 2020, the pandemic negatively affected the potential growth of the market. Manufacturing companies had to temporarily shut down because of the restrictions imposed by the lockdown globally. However, in the latter part of 2020, increased health awareness globally supported market growth. This has been projected to remain so for a very long time. This is to say that the pandemic has helped to increase the prominence of wearable technologies in the health sector.
Furthermore, the increase in the use of these devices by recreational fitness enthusiasts and professional athletes is expected to increase the demand for wellness and fitness products during this timeframe. Anticipated benefits are also in order for the market because of the ever-growing awareness of the pros of wearing electronics, the rise in smartphone penetration, and increasing disposable incomes. The initiatives of different market players are also likely to contribute to the increasing growth projections of the market. However, the market remains susceptible to threats emanating from factors such as initial high cost, data privacy concerns, and low battery life.
Regarding products, the market is divided into footwear, neckwear, wristwear, bodywear, headwear, eyewear, etc. The wristwear dominated the market in 2020, accounting for a larger market share segment. A fitness wristwatch can be paired with a mobile application to provide fitness-related information. The eyewear and headwear products are expected to expand at a CAGR of 14.2% from 2021 to 2028.
Regarding application, the market is categorized into; healthcare, consumer electronics, enterprise, industrial application, and others. The consumer electronics category accounted for greater than 48.4% of 2020 global revenue with its numerous applications found in fashion, sports, multimedia, etc.
North America dominated the world in 2020, accounting for 34.7% of the revenue generated globally. This is not far-fetched since this region is home to a large population of internet users and various companies linked to one form of technological innovation or the other. The Asia Pacific market for wearable technologies is expected to witness and enjoy rapid growth secondary to an increase in purchasing power and a rapid growth in the population of people who have a wealth of experience in technology.
The prominent companies in the global market for wearable technologies include Xiaomi, Alphabet, Apple Inc., and Huawei Device Co, Ltd. These players focus on collaborations and acquisitions to improve their market prominence while also gaining a competitive edge in the global market.