Smartwatch Market

Global Smartwatch Market Size (2024 to 2032)

The global smartwatch market size is estimated to be worth USD 80.20 billion in 2024 and is projected to reach USD 327.23 Billion by 2032. The market is expected to register a compound annual growth rate (CAGR) of approximately 18.32% during the forecast period 2024 to 2032.

Current Scenario of the Global Smartwatch Market

A smartwatch is a portable gadget. It is designed for wearing on the wrist and comes with features like measuring heart rate and blood pressure, checking and managing emails and messages, etc. Also, these devices are light and highly mobile devices with an interactive touchscreen display and multiple applications for controlling and accessing smartphones. In addition, the latest trend is the growing popularity of IoT-enabled smartwatches which can be operated by interacting with other Internet of thing devices. It will serve as a critical element in improving people’s lives by tracking health and fitness, location and navigation, augmented reality, enhanced communication, environment temperature and air quality. For example, Kaa Cloud is an IoT platform easily integrated into wearable devices through microchips. Moreover, bluetooth, wifi and GPS are some of the wireless technologies that play an important role in the effective remote operation of smartwatches as they help in establishing connections with other laptops and tablets. As per a study, more than 224 million smartwatch users around the world as of 2024. Every 3 persons out of 10 employed online people are the owner of some type of smart wrist device such as a smartwatch, fitness band or health tracker.

MARKET DRIVERS

The rising prevalence and increasing R&D investments by the key players to develop advanced wearable products are driving the smartwatch market growth.

As per recent smartwatch market trends, the demand for and usage of smartwatches are increasing yearly. As per a study, it is expected that around 180 million smartwatches will be sold in 2024. And, the rising popularity and adoption of health monitoring devices among younger people have increased the application of these products. The growing world population and more people relocating to urban areas to build careers are believed to push the market forward. This is clear from the fact that in September 2021, the United Nations (UN) projected that over 56 percent of the global population live in metro or urban cities and this will further elevate down to over 68 percent by 2068.

Apart from this, Apple holds nearly 30 percent market share of the global smartwatch industry. After seeing this immense rise several major companies have started infusing additional funding for research and development activities. Like, Boat company has invested around 30 percent of its business expenses on R&D in 2023.

The growing incidents of cardiovascular diseases are boosting the smartwatch market share.

According to the WHO, cardiovascular diseases are a major cause of mortality around the world which takes about 17.9 million lives annually. This includes coronary heart disease, rheumatic heart disease, cerebrovascular disease and other conditions. In that, heart attacks and strokes are the most common reasons in 4 of 5 people die of CVD. Hence, the sale of healthcare wearables drastically increased and this trend became even more prevalent across the age group post-COVID-19.

Additionally, the rising demand for portable fitness wearable devices among athletes, sportspeople, fitness enthusiasts and other consumers worldwide for measuring different physiological parameters through smartwatches and subsequent brand promotions by famous sports personalities are key factors fuelling the market growth rate. Besides this, the industry is accelerated by technological developments, increasing fascination for wearable technology and high disposable income in developing economies.

Furthermore, smartwatches help doctors immediately give critical and complex information in case of emergency providing potential growth opportunities for the market players. And, the integration of GPS and location-based features has further strengthened its importance and made it an essential component for outdoor activities such as cycling, running, nearby outing, picnic and others.

MARKET RESTRAINTS

Limited knowledge among consumers regarding the abilities of smartwatches in some of the developing and underdeveloped countries is hampering the market growth rate worldwide.

Limited product knowledge and understanding impede the smartwatch market growth rate. This is because of the lack of clear marketing and communication regarding the advantages and applications. Nowadays people do not have much spare or self-time to look at a particular product. So, short social media posts, and less informative and more decorative product descriptions on online shopping platforms have rendered customers with restricted information. If we look at the percentage of those who own and those who are aware of them, only 8 percent of cognizant people purchase against 75 percent of consumers who are aware of smartwatches. In addition, technological and device complications are other restraining factors for the smartwatch market. Apart from this, the costly wearables and the availability of substitutes hinder market expansion. With the advancement in telecommunication, IoT electronics and information technology, the key industry players and wearable device startups will address the challenges and contribute to the growth of the smartwatch market in the future.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Smartwatch Market Analysis By Product Type

The extension segment is the biggest category under this segment of the smartwatch market. This can be attributable to the growing demand for function-packed smart devices and health and fitness trackers which are regularly utilized for augmenting their daily productivity. They are designed to work with smartphones and provide notifications, alerts and certain extra features straight to their wrist. Apart from this, its compatibility with other specific applications like health monitoring, connectivity, alerts and notifications has made it more popular among middle and upper-middle-class peoples.

Whereas, the standalone market segment is anticipated to lead the smartwatch market during the forecast period due to the growing need for convenience and miniaturization of devices. Besides, the rising consumption rate of smartphones and laptops is also spurring the growth rate of the global smartwatch market.  Moreover, the incorporation of IoT and the increasing use of connected devices are providing prospective opportunities for industry players to create their ecosystems like Apple. This category is extremely prevalent in the North America region owing to high investments made to create innovative wearable technology and the fast accessibility of the latest arrivals.

Global Smartwatch Market Analysis By Application

Based on the application, the sports segment is expected to hold the largest share of the smartwatch market. This is because of the rising awareness about health conditions and issues. So, people have increasingly adopted these sports versions of smartwatches.

For instance, Boat introduced the Xtend Sport smartwatch which is the successor of Boat Xtend. The company’s goal is to lead the smartwatch budget category with its affordable products.

Post-COVID-19 people are inclined towards different sports to maintain their health and fitness. This includes swimming, badminton, football, running and others. Also, working professionals are using this to check email notifications and colleague messages apart from checking their daily fitness parameters. Besides this, some people want to go somewhere outside or do outdoor activities at weekends. All these factors are driving forward the industry development.

REGIONAL ANALYSIS

Geographically, the North America smartwatch market captured the largest share in 2023 and is expected to continue throughout the forecast period. This is due to the increased pace of technological development and the large presence of a tech-friendly customer base. The United States was the first country to implement and integrate virtual SIM cards in smartwatch technology and has thus become the hub for manufacturers to use standalone smartwatch technology. In addition, the brand affinity and high consumerism in the region have greatly assisted companies in gaining the advantage of this customer interest in smart wearables. Also, North America's highly obese and overweight population has increased smartwatch use to track parameters like the number of steps, calories burnt, pulse rate, etc. This significantly influences the regional demand. Furthermore, the growing integration of IoT in smartwatches is another factor expanding the market growth in this region.

The Europe smartwatch market is anticipated to account for a substantial share during the forecast because of extensive industrialization, urbanization and increasing disposable income. Moreover, it is likely to expand further owing to the rising number of connected vehicles. Furthermore, the growing inclination of the young European population towards intelligent wearables is estimated to push forward the European smartwatch market.

During the forecast period, the Asia Pacific is the most lucrative regional smartwatch market worldwide. Also, the Indian smartwatch industry is predicted to grow at a healthy rate during the forecast period. In the fourth quarter of 2023, the Indian market experienced the maximum growth of 43 percent year on year basis. It is dominated by indigenous brands like Fire-Boltt Noise and Boat. Besides this, factors like growing available income, evolving customer preferences and high adoption rate of the latest technological advances are boosting the growth rate of the regional market. In addition, the varied demography and cultural diversity are both obstacles and opportunities for companies wanting to position themselves in the APAC region. For a long time, China and Japan have dominated the regional market but emerging countries like India, Vietnam and Indonesia are presenting huge potential for wearable solutions.

The Smartwatch Market in the Middle East and Africa is expected to have an inclined growth rate during the forecast period. This is attributable to the increasing demand for urbanization and the aesthetically attractive latest wearable devices are gaining traction among the customers. In addition, the large millennial generation in the region is progressively accepting smartwatches because of the higher spending for daily routine monitoring and luxury lifestyles.

KEY PLAYERS IN THE GLOBAL SMARTWATCH MARKET

A few notable manufacturers profiled in this report that dominate the global smartwatch market are Apple Inc., Google Inc., Garmin, Fitbit, Motorola, Sony Corporation, Samsung Electronics, LG Electronics, and Huawei Technologies Co. Ltd.

These players continuously work on technological advancements and product innovation to maintain and stabilize their market position and gain a better global smartwatch market share.

The demand for smartwatches dropped slightly at the beginning of the pandemic time of COVID-19. However, now that lockdown restrictions have been lifted in many countries, many companies are trying to launch their new devices and enter unique approaches to maximize their market share. Furthermore, the analysts at Market Data Forecast show that the intense levels of the smartwatch market competition are expected to see aggression during the forecast period.

RECENT DEVELOPMENTS

• In October 2023, Garmin introduced the aviator smartwatch D2 Mach 1Pro for pilots. The bracelet is made from titanium along with carbon gray DLC coating and also comes in black silicone band. It is designed to help pilots with all preflight, infight and postflight features and weather information access to NEXRAD, METARS, TAFs and MOS.
• In September 2023, Apple Inc. reintroduced its Apple Watch Series 9 smartwatch with the new flagship iPhone 15 series. The company enhanced its performance with the incorporation of A15 processor. Earlier this series was banned by US International Trade Commission (ITC) from selling in United States due to infringement of Masimo's rights on light-based technology for measuring blood oxygen levels.

DETAILED SEGMENTATION OF THE GLOBAL SMARTWATCH MARKET INCLUDED IN THIS REPORT

This research report on the global smartwatch market has been segmented based on product type, application, and region.

By Product Type

• Extension
• Standalone
• Classic

By Application

• Personal Assistance
• Sports
• Medical
• Others

By Region

• North America
  • The United States
  • Canada
  • Rest of North America
• Europe
  • United Kingdom
  • Germany
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • India
  • China
  • Japan
  • South Korea
  • Australia
  • New Zealand
  • Rest of APAC
• Latin America
  • Mexico
  • Brazil
  • Argentina
  • Chile
  • Rest of LATAM
• The Middle East and Africa