The global wearable technology market is likely to witness momentous growth in coming years owing to smartphone penetration and internet mobility. Adoption of western lifestyle and rising consumer disposable income can increase the spending on consumer utilities, which is further expected to bode well for the market. Growth of tech-savvy population and preference for maintaining physical fitness is likely to increase the demand for the technology. High occurrence of diabetes, obesity, and other chronic ailments has also increased the demand for wearable devices, such as body monitors and activity trackers, as they provide real-time information related to health.
Technological advancements and high R&D investment by the players can create growth opportunities for the market. Growth of semiconductor and electronics industry is expected to play a crucial role in the development of advanced products. In addition, advancements in sensor technology and emergence of Internet of Things (IoT) and connected devices are likely to fuel market growth in the coming years. Development of 3D printing solutions is expected to result in the improvement of the product design. Wearable technology is also used in several consumer electronics products, such as smart gadgets and gaming devices. High demand for VR headsets and AR glasses in interactive gaming and entertainment can support market growth in the coming years.
High manufacturing cost and low battery life can hamper market growth in coming years. In addition, issues related to data privacy can challenge the market. However, development and awareness regarding energy efficient products can have a positive impact on market growth.
Wearable technology finds its applications in various industries, such as healthcare, fitness and sports, infotainment, and defense. Healthcare is a leading application in the market due to growing demand for health monitoring devices. Demand for wearable devices is likely to increase in the defense sector due to increasing efforts by the government to improve their defense capability and enhance soldier’s strength by providing advanced technology. Wearable devices, such as head-up display, smart clothing, smart glasses, and smart watches, are extensively used in the defense sector. For instance, Garmin International, Inc. a unit of Garmin Ltd., declared that the D2 Charlie aviator watch was chosen by the United States Air Force (USAF) for application by the aviators of the Lockheed U-2 aircraft. The watch is integrated with navigation capability, colorful moving maps, and more.
Infotainment is likely to emerge highly lucrative in coming years owing to improvements in virtual reality (VR). Fitness and sports devices are used to monitor emotions and physical activity. In addition, wearable technology is employed to manufacture smart clothing, foot pods and pedometer, head up display, and smart watches.
North America is a leading region in the market due to increasing use of healthcare products. The U.S. is contributing significantly to regional market growth owing to adoption of wearable technology, especially in health and wellness applications. The country has outstanding facilities for research and development. Presence of key players, increasing investments, and innovation in applications, such as healthcare, garment, and fashion, are expected to boost market growth in coming years. Europe is expected to emerge one of the promising regions in the market. Germany and U.K are the key contributors to regional market growth.
Asia Pacific is likely to witness substantial growth in the years to come due to improving economic conditions and growing tech-savvy population. Smartphone penetration and availability of high-speed internet is also expected to boost regional market growth. The region is expected to emerge as a key manufacturing hub in coming years due to availability of cheap resources and labor. India is one of the prominent software and services hubs in the world with greater technical expertise.
Some of the leading companies operating in the wearable technology market include Apple Inc.; Google Inc.; Samsung Electronics Co. Ltd.; Nike, Inc.; and Fitbit. For instance, L'Oréal introduced a wearable sensor called My Skin Track pH to measure personal skin pH levels and develop customized products. The companion app tracks exposure to humidity, pollution, and pollen. The sensor was developed along with the company’s leading skincare brand, La Roche-Posay, which further assists the dermatologists to develop efficient skincare products.
Research Support Specialist, USA