The smartwatch market size was valued at $9,264.9 million in 2017 and is projected to reach $31,070.6 million by 2025, registering a CAGR of 16.2% from 2018 to 2025.
North America accounted for the highest revenue share in 2017 and is projected to grow at a CAGR of 15.0% during the forecast period.
Smartwatch is a portable wearable device that is used to track various activities such as steps covered in a day, calories burnt, heart rate, and others. Smartwatch is similar to a mobile phone device with a touchscreen display and consists of various apps through which a person can access his mobile phone. An increase in the adoption of the smartphone along with fast internet connectivity is the key driver for the growth of the global smartwatch market. As of now, the market is driven by leading tech companies such as Xiaomi, Samsung, Apple, Google, and others.
The standalone segment accounts for the highest market share in the global smartwatch market owing to features such as wireless operations, sim card acceptance & can be used as a mobile phone, and to access the internet. Rise in demand for wireless fitness & sports devices, an increase in health awareness among the consumer, and the entrance of a large number of players, drive the growth of the smartwatch market.
The key players operating in the global smartwatch market are Apple Inc., Google Inc., Garmin, Fitbit, Motorola, Sony Corporation, Samsung Electronics, LG Electronics, and Huawei Technologies Co. Ltd. These key players have adopted strategies such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations to enhance their market penetration.
SEGMENTATION
The global smartwatch market is segmented into product, application, operating system, and region. Based on the product, the market is categorized into extension, standalone, and classical. Based on the application, it is divided into personal assistance, wellness, healthcare, sports, and others. The market is categorized as watchOS, Android, RTOS, Tizen, and others on the basis of the operating system. Based on the region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
TOP IMPACTING FACTORS
The top impacting factors of the market include growth in demand for wireless fitness & sports devices, an increase in health awareness among the consumers, and entry of a large number of players drive the growth of the smartwatch industry. However, high cost and lack of strong internet connectivity restrain the smartwatch market growth.
Moreover, a rise in investment in building a connected ecosystems across the globe is expected to provide lucrative opportunities for the growth of the global smartwatch market in the upcoming years. However, each of these factors is expected to have a definite impact on the market.
Growth in demand for wireless fitness & sports devices
With the rapid rise in internet connectivity and digitalization, the demand for wireless electronics is also increasing. In today’s digital era, mobile apps are used for various purposes such as listening to music, playing games, and others. The smartwatch offers lots of apps, which can be customized as per our requirements. The smartwatch is one of the highest revenue contributors in the wearable segment. The everyday fitness activities such as steps taken, calories burnt, distance traveled, and others, can be easily monitored and tracked using a smartwatch. The smartwatch offers wireless connectivity, greater battery life, and other advanced features in addition to fitness trends/data that ultimately drive the smartwatch market growth.
Increase in health awareness among the consumers
Nowadays consumers are conscious about their health. The consumer across the globe is spending a lot on health monitoring gadgets. The recent Apple watch series 4 can track heart rate, nervous system, emergency or inactivity alerts, and health-related events. As per a recent report by the Centers for Medicare and Medicaid Services, $3.4 trillion amount spent on health every year in the U.S. which includes the cumulative sum of each person spending on different healthcare products and services. Using a smartwatch, a user can take required precautions in advance by consulting to the doctors. Also, the doctors can easily track patient health status remotely through the smartwatch and can maintain, suggest, or treat them as per the requirement.
High initial cost
Smartwatch consists of complex circuit configurations due to integration of various devices including sensors, display and others into a small compact device. The device possesses several semiconductor equipment of very small size with core diameter of 10 micro meter. The control ICs are of few hundred nanometers, so designers face problems in coupling the different components into a single device. The accuracy required for the designing & development along with the raw material requires high set of expertise as well as high initial cost. Thus, it is expected to hamper the growth of the market.
Rise in investment on building connected ecosystem
Rise in data dependency among the users, growth in demand for connected & smart system, and the huge investment on building smart cities by the government, are the major key areas that drive the demand for smart wearables. These smart watches are used to make call, send message alerts, listen to music, play games, and others. The mobile phone can be easily accessed through the smartphone. In future, its connectivity through various other devices, led to development of ecosystem. According to the United Nations, 68% of the world population is anticipated to shift in urban areas by 2050. In addition, the total expenditure on Internet of Things in Asia-Pacific is expected to increase at a high rate. For instance, the South Korean government decided to invest $350 million in around 300 potential companies that are estimated to be globally competitive in the next four years to develop an IoT ecosystem within the country. China’s central government has selected over 200 cities, which include Beijing, Shanghai, Guangzhou, Hangzhou, and others, to pilot smart city projects. It is estimated that over 90% of China’s provinces and municipalities have listed IoT as a pillar industry in their development plans. This is expected to lead to the huge penetration of smartwatches in the coming future.
MARKET BY TYPE PRODUCT
MARKET BY APPLICATION
MARKET BY OPERATING SYSTEM
MARKET BY GEOGRAPHY
$4999
$6004
$8373
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