Technology market

Wearables market expected to grow by $250 billion at a healthy CAGR of 18-20%

“Wearable technology market”

MarketsandMarkets’ latest Wearable Devices research report identifies key disruptions and potential growth opportunities in Wearable Devices, Wearable Devices Trends, Wearable Devices Statistics to help companies shape their growth strategy.

With the wristwear market heading towards approximately $100 billion in revenue and emerging companies leaning towards direct-to-consumer strategies, a potential revenue opportunity worth $250 billion is expected to be created in the clothing space.

The global wearable technology market is expected to be valued at $265 billion by 2026, more than half of this growth is driven by the consumer electronics segment. This growth is attributed to the demanding lifestyle in both developed and developing countries as well as increasing advancements in wearable products such as smart glasses, wristbands and smart shoes.

Adjacent markets hold potential for over $125 billion in wearable technologies, the majority of which will come from wearable payment devices and wearable health devices.

According to MarketsandMarkets analysis,

  • $250 billion in potential opportunities open up as $100 billion revenue wearables, of which AI-powered virtual assistance was one of the most discussed trends in 2021.
  • The wearable technology market is expected to grow at a healthy CAGR of 18-20% over the next 5 years, driven by the growing popularity of IoT and connected devices and growing consumer preference for sleek and compact devices in the fitness and health apps.
  • We are witnessing increasing adoption of AI, IoT, contactless payments, health tracking, etc. which may disrupt the demand for wearable devices, impacting the growth of the market .
  • It is predicted that by 2026, 1.2 billion wearable products will be shipped worldwide.
  • Currently, companies have limited access to primary intelligence to clarify certain unknowns and adjacencies in these areas of opportunity –
  • Automation adoption levels in wearable devices are low. Currently, it is between 30 and 40% worldwide, but in developed countries it is approaching 50%. As automation reduces TAT, helps minimize errors, and provides repeatable results, it is widely used in consumer electronics and healthcare applications.
  • Growing Focus on Personalized Health Tracking Drives Wearables Market
  • Markets such as wearables in healthcare, wearables in automotive, and wearables in manufacturing offer immense growth opportunities, owing to the growing popularity of IoT and connected devices.
  • In target enrichment, developed countries use compact devices are generally preferred

Some of the growth challenges faced by wearable companies are:

  1. Prioritization of clients and assessment of unmet needs:
  • What are the disruptions to our customers’ businesses? How can we accompany them for our own growth?
  • Who are the most potential customers in the future? Should we prioritize consumer electronics, healthcare, enterprise and industrial applications, or aerospace and defense companies?
  • What are the main unmet customer needs? Who are the main stakeholders in different contexts? Do the supplier selection criteria differ according to the parameters? What new product features need to be added to existing products?
  • Where to play:
    • What applications and technologies should we focus on? Should it be AR/VR, smartwatches, smartbands, or anything else?
    • Which regions should you bet on? Should we continue with developed countries or do developing countries offer more opportunities for growth?
  • Build a compelling Right-to-Win (RTW):
    • For M&A, what are the right targets for us? Should we target AR/VR companies or smartwatch, wristband companies? Should we enter new markets directly or through partners?
    • How to differentiate yourself from the best players? What is their right to win compared to ours?

    Key Uncertainties/Perspectives Industry Leaders Seek Answers:

    1. For portable companies:
    • What wearable technology will be relevant and redundant in the next 5 years?
    • Can portable devices become affordable?
    • How can companies optimize manufacturing processes to be more agile and efficient in order to achieve more functionality and greater efficiency?
    • What regulatory policies can help build strategies and increase sales?
    • What can be done to increase awareness of wearables in healthcare applications?
  • For businesses in adjacent markets:
    • What are the privacy and data security regulations?
    • What machine learning approaches can be used to address data limitations so that AI models do not lead to misleading information or incorrect predictions?
    • How do companies deal with machine bias?
    • When can we expect 100% AI integration in wearables?
    • How will automation impact the wearables market?

    Therefore, MarketsandMarkets research and analysis focuses on high-growth markets and emerging technologies, which will account for around 80% of revenue for wearable players in the ecosystem in the next 5-10 years. It helps find blind spots in customer revenue decisions due to interconnections and unknowns that impact customers and their customers’ customers.

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