Smart Watch Market Projections Estimated to Reach US$ 99,057.0 Million with a Robust CAGR of 10.8%, Persistence Market Research

New York, Jan. 19, 2024 (GLOBE NEWSWIRE) — The global smartwatch market has experienced significant growth in recent years, fueled by technological advancements, shifting consumer preferences, and an increased emphasis on health and fitness. Smartwatches have transcended their initial role as mere extensions of smartphones, now incorporating a diverse array of features and functionalities to meet the varied needs of consumers.

As of 2022, the smart watch market was valued at US$ 32,431.4 million, and this figure is projected to increase to US$ 35,415.1 million in 2023. By the conclusion of 2033, the market is expected to reach a valuation of US$ 99,057.0 million, exhibiting a compound annual growth rate (CAGR) of 10.8%.

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Smartwatches represent the digital evolution of traditional watches, providing users with calling services, fitness tracking, notifications, internet and application access, email checking, and timekeeping. In essence, smartwatches share several features with smartphones.

A significant factor driving the purchase of smartwatches is their dual functionality as fitness trackers, appealing to the growing interest that consumers have developed in this technology.

In terms of regional distribution, North America dominated the global market landscape in 2022, holding a market share of 26.6%, followed by Europe with a market share of 21.5% during the same period.

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Market Scope:

 Report Coverage  Details
 Market Revenue 2023  US$ 35,431.4 Mn
 Estimated Revenue 2033  US$ 99,057.0 Mn
 Growth Rate – CAGR  10.8%  
 Forecast Period  2023-2033
 No. of Pages  250 Pages
 Market Segmentation
  • Type
  • Operating System
  • Age Group
  • Price Range
  • Sales Channel
  • Region
 Regions Covered
  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia Pacific
  • Middle East and Africa
 Key Companies Profiled
  • Fitbit Inc.
  • Samsung Electronics Co., Ltd
  • Sony Corporation
  • Garmin Ltd.
  • Fossil Group, Inc.
  • Huawei Technologies Co., Ltd.
  • Xiaomi Corporation

Smartwatch Market Trends:

This segment delves into the prominent trends that are shaping the Smartwatch Market, as per insights from our research experts:

Smartwatches are rapidly emerging as pivotal wearable fitness technologies, with users seamlessly integrating them with various apps to monitor diverse sets of data. Often functioning as efficient tracking devices, smartwatches are lowering access barriers and delivering an exceptional user experience. This trend positions smartwatches to play a crucial role in the industry’s landscape in the near future.

In June 2022, Boat unveiled the Xtend Sport smartwatch, an upgraded iteration of the Boat Xtend. With a robust presence in the budget audio market, Boat is strategically expanding into the budget smartwatch arena, contributing to the dynamism within the sports industry.

Technological advancements in the fitness sector have significantly influenced recent developments in smartwatch devices. Monitoring has become a focal point for the market, witnessing a surge in intelligent integration into smartwatches, providing real-time insights based on individual data. Smartwatches now feature enhanced functionalities, including time-scheduled tracking of physical activities, contributing to an anticipated surge in the growth rate of smartwatch devices. The escalating investments by various smartwatch vendors, aimed at preventing injuries among highly paid professional athletes, are expected to drive the development of smartwatches tailored for professional usage.

For instance, Qualcomm’s Snapdragon Wear 3100, a purpose-built processor for wearables, holds prominence across multiple smartwatches in the market. Designed to optimize battery life and functionality across various scenarios, it is utilized by renowned watchmakers such as Fossil Group, Louis Vuitton, and Montblanc in their smartwatches.

Moreover, the introduction of new products with enhanced features by leading vendors globally is poised to propel market growth. In June 2021, Garmin International Inc. introduced the Forerunner 945 LTE, a premium GPS running and triathlon smartwatch with LTE connectivity. Tailored to keep athletes connected on the move, the watch offers phone-free safety and tracking features, spectator messaging, and live event sharing on the wrist. It also provides detailed training data, performance monitoring tools, and smartwatch features that modern athletes rely on.

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Market Dynamics: Global Smartwatch Market Drivers:

Growing Urban Population

The proliferation of smartwatches is closely linked to the expanding urban population. With the capability to seamlessly connect to mobile phones, facilitating functions such as making calls, receiving message notifications, listening to music, playing games, and more, smartwatches contribute to the dissemination of the concept of monitoring personal health. This, in turn, encourages the adoption of a healthier and more modern lifestyle. Individuals are increasingly turning to technologically advanced smartwatches, which offer convenience at their fingertips and enable the tracking of daily activities.

Massive Investment in Building Smart Cities

A significant driver for the demand of smart wearables is the escalating reliance on data among end-users, coupled with substantial government investments in the development of smart cities. Smartwatches, equipped with features like gaming, calling, music playback, message alerts, and more, simplify access to mobile phones. The smartwatch becomes a convenient tool that aligns with the rising trend of data-centric living, further fueled by extensive governmental efforts to create smart urban environments.

Global Smartwatch Market Challenges:

Despite their multifunctional capabilities beyond timekeeping, smartwatches are prohibitively expensive, making them inaccessible to the average consumer. Moreover, their battery life is limited, with some watches lasting only one or two days on a full charge. Additionally, smartwatches heavily depend on the functionalities of a smartphone. When certain features are frequently utilized, energy consumption can spike, leading to a rapid depletion of the smartwatch’s battery.

Global Smartwatch Market Opportunity:

Increased Investment in Healthcare

The growing expenditure on healthcare, propelled by a progressive increase in the aging population and the prevalence of age-related ailments, along with a rise in heart-related issues among younger demographics, is fostering a surge in consumer spending on healthcare. This surge is contributing to an increased demand for smartwatches. The adoption of watches facilitating the exchange of health data with healthcare professionals and providing emergency service alerts aligns with the growing trend of home healthcare among consumers. Furthermore, the strategic approach of major players to expand through alliances and acquisitions is poised to expedite the growth of the smartwatch industry.

Hybrid Smartwatches

The hybrid smartwatch, seamlessly blending the functionalities of a smartwatch and a traditional mechanical watch, presents a significant advantage for companies in the smartwatch market. Distinguished by the absence of a touchscreen user interface and charging capabilities, the hybrid smartwatch retains all the characteristics of a conventional smartwatch while incorporating certain connected features. Appearing like a typical mechanical watch with additional functionalities such as heart rate tracking and calorie monitoring, it is smartly designed with Bluetooth connectivity. Consumers, particularly those in affluent and business-oriented segments, have exhibited a strong affinity for these hybrid smartwatches. This preference is in contrast to more intricate smartwatches that require technical expertise to operate effectively and have extended charging times. Consequently, the market players can anticipate rapid growth in this segment.

Top 8 Key Players:

The smartwatch market is fiercely competitive, with key players like Apple, Samsung, Huawei, Fitbit, and Garmin holding significant shares. These companies focus on enhancing connectivity with smartphones through software upgrades. Classic watch brands such as Fossil, Swatch, and Tag Heuer are entering the arena with hybrid watches featuring modern functionalities. However, premium brands face competition from affordable Chinese and Indian vendors offering differentiated features. Prominent players in the global smartwatch market include:

  1. Apple Inc.: A leader in the smartwatch industry, Apple’s Apple Watch series has been highly successful, offering a wide range of features including health and fitness tracking, communication, and integration with other Apple devices.
  2. Samsung Electronics Co., Ltd.: Samsung is a major player in the smartwatch market, producing a variety of smartwatches that run on its Tizen operating system and are compatible with Android devices.
  3. Garmin Ltd.: Known for its focus on fitness and outdoor activities, Garmin produces smartwatches tailored for sports and health enthusiasts, offering advanced fitness tracking and GPS features.
  4. Fitbit, Inc. (acquired by Google): Fitbit gained popularity with its fitness trackers and later expanded into the smartwatch market. Google’s acquisition of Fitbit further strengthened its position in the wearable technology sector.
  5. Huawei Technologies Co., Ltd.: Huawei, a prominent smartphone manufacturer, also offers a range of smartwatches. Their devices often feature stylish designs and advanced health monitoring capabilities.
  6. Fossil Group, Inc.: Fossil is recognized for its smartwatches running on Wear OS by Google. The company collaborates with various fashion brands to produce a diverse range of smartwatches.
  7. Xiaomi Corporation: Xiaomi has gained a significant market share with its budget-friendly smartwatches, offering a combination of features, affordability, and stylish design.
  8. Amazfit (a brand of Huami Corporation): Known for its affordable smartwatches with comprehensive health and fitness tracking features, Amazfit has established itself in the market.

Segmental Analysis

The global smartwatch market is categorized by Type, Application, Operating System, Connectivity, and region.

Type:

Extension: Dominating the market, this segment is expected to grow at a CAGR of 25.9%. The demand surge is attributed to the popularity of feature-rich smartwatches enhancing smart device capabilities.

Standalone: Equipped with SIM cards for independent call functionalities, this segment thrives on the demand for devices monitoring daily activities.

Classical: With a rotating bezel and larger build, classical smartwatches hold a minor market share.

Application:

Healthcare/Wellness: Significant in the market, discrete and biosensor-equipped smartwatches show potential in healthcare applications. Proactive monitoring is expected to remotely oversee five million individuals by 2023.

Sports: Targeting athletes, sports smartwatches offer standard features like step counters and training reminders, providing essential fitness data.

Personal Assistance: Featuring virtual assistants, these smartwatches assist users in handling everyday tasks with ease.

Operating System:

iOS: Holding a significant share, iOS compatibility with various devices ensures ease, comfort, and multitasking support.

Android: As an open-source OS, Android’s adoption by many manufacturers contributes to its anticipated growth.

Others: Steadily growing, this segment includes smartwatches with diverse operating systems like RTOS and WatchOS.

Connectivity:

NFC: Dominating with the highest CAGR, NFC adoption by leading brands like Apple and Samsung, supports contactless payments, and is integrated into popular smartwatches.

The analysis provides a comprehensive overview of the smartwatch market, showcasing dominant segments and their growth trajectories.

Regional Analysis:

The market is assessed across key regions, namely North America, Asia-Pacific, Europe, and LAMEA, with North America currently dominating the market.

North America:

North America maintains a substantial market share and is poised for significant growth at a considerable CAGR in the forecast period. The robust demand for smartwatches in this region is notably driven by the success of Apple, Inc.’s smartwatch series. The swift adoption of emerging technologies and early access to recently launched products serve as pivotal factors propelling market expansion. Additionally, the increasing prevalence of connected devices and the integration of IoT into smartwatches, enhancing user convenience, contribute to heightened sales in North America.

Europe:

Europe stands as one of the largest regional markets, with expectations of continued stable growth in the forecast period. Market expansion in Europe is foreseen to be powered by the escalating sales of connected cars and the rising disposable incomes across European nations. Furthermore, the growing preference of younger consumers for intelligent wearables is anticipated to further drive market growth.

Asia-Pacific:

The Asia-Pacific region is anticipated to witness the swiftest market development, owing to the booming consumer electronics industry and the rapid emergence of market vendors in developing nations. Key factors influencing market growth include the surge in chronic disorders like obesity and diabetes, coupled with the increasing popularity of health and fitness trends to maintain a healthy lifestyle.

LAMEA:

The LAMEA Smartwatch market is segmented into Brazil, Argentina, the United Arab Emirates, South Africa, Nigeria, Saudi Arabia, and the Rest of LAMEA based on countries. Brazil continues to lead the smartwatch market in LAMEA. Both South Africa and the United Arab Emirates are projected to experience robust Compound Annual Growth Rates (CAGRs), indicating significant market growth.

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