Wearable AI Market - Forecast(2024 - 2030)

Wearable AI Market Overview

Wearable AI Market size was valued at $11.28 billion in 2021 and it is estimated to grow at a CAGR of 11.58% during the period 2022-2027. Increasing investments on artificial intelligence (AI), head mounted display, high penetration of IoT, intelligent devices and rising popularity of wireless technology in healthcare sector are the major driving factors behind the growth. Growing concerns related to various chronic diseases triggered the adoption of wearable products such as body monitors, fitness trackers, smart-watches and others; which offer real-time information about the overall health conditions and multimodal sentiment analysis. This in turn fuels the growth of wearable AI market. Furthermore, the exponential growth in the adoption of smart-phones, OTT as well as content delivery networks (CDNs) platforms along with high demand for technologically advanced consumer electronics has affected the wearable AI device market positively. Rising disposable income and economical growth in emerging countries accelerated the growth of wearable AI industry. Additionally, rapid industrialization, growing health awareness coupled with initiatives for workers’ health creates a massive demand for industrial wearable devices, thereby driving the growth of wearable AI market during the forecast period.

Report Coverage

The report: “Wearable AI Market Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Wearable AI Market.

Key Takeaways

• Smart watches held a major market share 28.95% in 2021 and analyzed to witness fastest growth during the forecast period, due to high health awareness among the people across the world, growth in the purchasing power and economical development.
• North America dominated the market with major market share 32.56% and is anticipated to register significant growth during the forecast period 2022-2027, owing to increasing popularity of wearable devices along with high demand for advanced consumer electronics in this region and others,
• Growing investment on AI technology and increasing demand for smart connected devices are few of the main driving factors of the market.
• The market is consolidated with top market players including Apple Inc., Google LLC, Microsoft Corporation, Sony Group Corporation, Garmin Ltd, Fitbit, Inc., and others.

Wearable AI Market Value Share, by Geography, 2020 (%)

Wearable AI Market Segment Analysis – By Product

By product, this market is segmented into Smart Watch, Ear Wear, Eye Wear and Other wearable devices. Smart watch held the major Wearable AI market share around 28.95% in 2021 owing to the increasing health awareness and rising disposable income. Smart watches provide real-time health status analysis as well as multimodal sentiment analysis, which accelerates the demand for this product and drives the growth off wearable AI market. Newly developed smart-watches are equipped with some unique advanced features that help in monitoring health related issues and also help in making the diagnostic process more efficient and convenient for both the patient as well as the health-workers. This in turn, creates huge opportunities for this market. In August 2021, Fitbit had launched its new smart-watch, Sense, which offers technologically advanced health tracking features including electrodermal activity (EDA), skin temperature sensing, Sp02 sensor for oxygen saturation checking and others. Moreover, the growing penetration of smart-phones is also driving the adoption of smart-watches. Hence, the above mentioned factors will drive the growth of this market in the forecast period.

Wearable AI Market Segment Analysis - by End-User Industry

Based on end-user industry, Wearable AI Market is segmented into Consumer Electronics, Healthcare, Enterprise and Industrial and Others. Consumer electronics industry is the major segment in Wearable AI Market specifically due to the rising health awareness across the world. Health conscious people are adopting these devices to stay fit, which is a major driver for this market. These devices have been used for staying fit, health monitoring, achieving health goals and other health related applications. To meet the requirement of such devices, market players are launching AI-based wearable devices. For instance, in August 2020, in order to help people improving their health and wellness, Amazon launched Amazon Halo and Amazon Halo Band, a combination of a suite of AI-powered health tools with an innovative wrist band. Apart from health related tools, consumer electronic products also include various types of wearable products that are being used for OTT platforms, content delivery networks (CDNs), sports, gaming and many other entertainment related applications. In addition, many key players of this market are investing heavily to develop new and advance AI-enabled wearable health-care solutions across the world. Thus, these factors ultimately contribute to the market growth.

Wearable AI Market Segment Analysis - by Geography

North America dominated the market with a major wearable AI market share around 30% in 2020. This growth will be attributed to early adoption of this technology, increasing popularity of wearable devices along with high demand for advanced consumer electronics in this region and rising investment on AI technology. According to a survey conducted by Pew Research Center on June 2019, approximately one-in-five U.S. adults (21%) regularly wear a smart watch or wearable fitness tracker for improving their health. Furthermore, high penetration of smart-devices including smart-phones, high usage of smart wearable devices in healthcare sector and the presence of major market players in this region are accelerating the growth of this market in this region. In January 2021, Google completed the acquisition of a leading provider of consumer electronics and fitness wearable devices, Fitbit, after investing $2.1 billion for the acquisition. Such developments will drive the growth of this market during 2022-2027.

Wearable AI Market Drivers

Increasing Demand for Smart Devices:

The increasing demand for smart devices such as smart-watches, smart eye wears, smart ear wear and others, for health and wellness purposes and integration of AI technology into those smart devices is one of the major drivers, accelerating the market growth during the forecast period 2022-2027. With technological advancement and economic development, the demand for smart devices, which can provide intelligence amplification (IA) assistance, is rising along with the wearable smart devices and to fulfill such demands major market players are strategically launching their products. In September 2020, Xiomi launched its new Mi Smart Speaker, Mi Smart Bulb, Mi Athleisure Shoes, Mi Band 5, Mi Watch Revolve and Mi Automatic Soap Dispenser in India. Similarly, in April 2021, Fitbit announced about the launch of its highly fashionable wrist-worn fitness tracking health band, Luxe, which offers heart rate sensor, sleep tracking, and blood oxygen monitoring. Hence these types of developments of are analyzed to drive the market in the forecast period 2022-2027.

Rising Investments on AI Technology:

Organizations are investing heavily for the development AI-technology, which is set to create tremendous opportunities for the wearable AI market during the forecast period 2022-2027. In May 2020, Intel announced about its global investment plan of $132 million on 11 start-up companies focusing on AI, automation and chipset designs. Furthermore, to enhance the technologies and to create more advanced AI-based wearable devices organizations are collaborating, investing on other companies and acquiring businesses. For instance, in June 2021, Singapore-based Company, Aevice Health partnered with Japan-based Toho Holdings and raised $2.1 million fund to bring AI wearable stethoscope for remote respiratory health monitoring in Japan. Such strategic investments, acquisitions, partnerships by organizations on AI technology for wearable devices, are augmenting the global Wearable AI market.

Wearable AI Market Challenges

Security Issues:

With digitalization, the adoption of wearable AI and this technology related data security threats is rising, which is anticipated to hinder the market growth during the forecast period 2022-2027. According to security researchers, these smart watches can be hacked and the hackers can take complete control over the devices. Nowadays, smart-watches are very popular among all the age groups including elderly people. UK based security firm, Pen Test Partners conducted a research and found that with the help of these smart watches hackers can send fake “take pills” reminders to the patients. This security issue can cause fatal as well as non-fatal health issues, which is harming the market growth during 2022-2027.

Wearable AI Industry Outlook

Partnerships and acquisitions along with product launches are the key strategies adopted by the players in this market. Wearable AI top 10 companies include:

1. Apple Inc.
2. Google LLC,
3. Microsoft Corporation
4. Sony Group Corporation
5. Garmin Ltd
6. Fitbit, Inc.
7. Huawei Technologies Co., Ltd.
8. Amazon.com Inc.
9. IBM Corporation
10. Oracle Corporation and others.

Recent Developments

• In June 2021, South Korea based Start-up Company, Sky Labs raised $20 million fund in a Series B funding round for developing health monitoring wearable devices.
• In April 2021, IBM released IBM Spectrum Fusion, a container-native software-defined storage (SDS) solution. The solution will combine IBM's universal parallel file system technology with data security software to provide enterprises and their applications with a straightforward and less complex method to accessing data across data centres, the edge, and hybrid cloud settings.
• In June 2020, Garmin acquired Firstbeat Analytics Oy, leading provider of physiological analytics and metrics for consumer devices in healthcare, wellness, fitness and other related markets, for enhancing the performance level of Garmin products’.

Relevant Report Titles:

Wrist Wearable Devices Market – Forecast (2021 - 2026)

Report Code: ESR 0021

Wearable Fitness Technology Market – Forecast (2021 - 2026)

Report Code: ESR 0197

For more Electronics Market reports, please click here