Global wearable devices market to 2026: Market recorded unit shipments of 130 million in 2017 and is expected to grow at a CAGR of 16.5%
The global Wearable Devices market recorded 130.8 Mn units shipment in 2017 and expected to grow at the CAGR of 16.5% from 2018 to 2026.
The growing emergence of IT technology in healthcare & medical, fitness & wellness, military & defense, etc. is expected to boost the demand for wearable devices in the near future. These devices can be worn on the user’s body 24×7 and contain wireless connectivity, advanced circuitry, and at least a minimal level of independent processing capability. Wearable devices find promising application in multiple sectors such as fitness & wellness, healthcare & medical, infotainment, enterprise & industrial, military & defense and others (sports, lifestyle, etc.).
Increasing penetration of smartphones, increased preventive care, increased prevalence of chronic disease, aging population, rising awareness about health & fitness, etc. are some of the factors driving the demand for wearable devices across the globe. However, high cost of devices, durability, limited battery life, data security issues, etc. are some major factors expected to hamper the growth of wearable devices during the forecast period.
Wearable devices include different products such as smart watches, fitness & activity tracker, smart eyewear, smart clothing, medical devices, and others (cameras, smart jewelry, ear/head phones, etc.). In 2017, Smart watches accounted for the largest share in terms of market value and unit shipments, followed by fitness & activity tracker and medical devices. Medical devices segment expected to witness the robust CAGR between 2018 and 2026, owing to technological advances in the healthcare & medical sector, growing number of pharmacies & healthcare apps compatible with wearable devices, rising trend of wireless connectivity among healthcare providers, and increasing awareness about physical fitness.
Fitness & Wellness dominated the Wearable Devices market by end-use industry in 2017. Different demographic and social trends such as higher ratio of seniors, rising increased prevalence of chronic disease, average life expectancy, and increasing proportion of patients requiring long-term care expected to supplement the demand for various wearable devices from this segment. Healthcare and Medical segment acquired over 20% market share in terms of market value in 2017.
The Wearable Devices market is segmented by distribution channel in the following categories: online retailing, exclusives stores, multibrand stores, hypermarket and pharmacies. Wherein, exclusives stores led the segment with largest share of devices sale in 2017. Based on the geography, North America is the leading region during 2017-2018 in terms of value and volume.
Factors such as increasing application of remote patient monitoring and home care, aging population, presence of affluent millennial generation, increasing number of professional athletes, and clinical and military research mainly in U.S. propelling the growth of wearable devices in the region. While, Asia-Pacific is identified as the fastest growing owing to population with rising disposable income, rapid economic growth, and increasing expenditure into healthcare sector and defense sector.
With a strong presence in smart watch market, Apple Inc. seized the leader position in wearable devices market in 2017, whereas Fitbit and Xiaomi closely follow the Apple Inc. in terms of unit shipment market share during 2017-2018. Apple Inc. expected to dominate the wearable devices market in the near future due to surge in smart watch shipment across the globe.