Smartwatch Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)
Get a Comprehensive Overview of the Automated Machine Learning Market Report Prepared by P&S Intelligence, Segmented by Product (Extension, Classic, Standalone), Operating System (Android, iOS), Application (Wellness, Sports, Medical, Personal Assistance) and Geographic Regions. This Report Provides Insights From 2017 to 2030.
Smartwatch Market Size
Market Statistics
Study Period | 2017 - 2023 |
2023 Market Size | USD 38.7 Billion |
2024 Market Size | USD 42.3 Billion |
2030 Forecast | USD 73.3 Billion |
Growth Rate (CAGR) | 9.6% |
Largest Market | North America |
Fastest Growing Market | Asia-Pacific |
Nature of the Market | Fragmented |
Largest Application | Personal Assistance |
Market Size Comparison
Key Players
Key Report Highlights
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Smartwatch Market Analysis
The global smartwatch market size stood at USD 38.7 billion in 2023, and it is expected to grow at a CAGR of 9.6% during 2024–2030, to reach USD 73.3 billion by 2030. The growth can be primarily ascribed to the rising urbanization rate and the increasing demand for advanced products with multiple features, including pulse rate tracking, sleep quality monitoring, and step counting. Furthermore, the growing millennial population is widely spending on wearables because of its improving lifestyle.
The hybrid smartwatch, which is a fusion of a traditional mechanical watch and smart features, but without a touch display and charging functionality, is creating a huge opportunity for players. It is smart because of its Bluetooth connectivity and added functionalities, such as a heart rate and a calorie (burned) tracker; but it resembles a normal mechanical watch.
Consumers, particularly those belonging to the upper and business classes, have shown great interest in such electronic gadgets as they find less interest in complex smartwatches requiring long charging hours and sound technical knowledge for their optimal usage.
Additionally, the demand for computerized wristwatches with functionalities that go beyond just timekeeping and basic smart features has been driving the growth of the market. While the early models were capable of performing tasks such as calculations and sending notifications, over the last few years, these products have been enabled with media and digital features and a proper OS.
New automotive control features embedded in, or compatible with, next-gen smartwatches are one of the prime factors driving the global market growth. Smartphones have already been integrated with automotive control features in the past decade, and smartwatches with automotive control capabilities are being seen as the next big thing in the smart and autonomous cars industry.
Companies are rolling out app-based offerings that are compatible with new series of smartwatches and go beyond the smart locking and unlocking of cars, remote starting of cars, and driver assistance. For instance, Viper SmartStart 4.0 is a next-generation smartwatch-compatible technology tailored to work with Apple Watch and Android Wear devices.
The technology puts the vehicle control on the user’s wrist through the installed SmartStart module, enabling the remote start system and CDMA/3G technology and connecting the vehicle to a wireless network. The ongoing developments in extended automotive functionalities compatible with the latest smartwatches are also expected to drive the global adoption of smartwatches at a high rate in the years to come.
Smartwatch Market Trends & Growth Drivers
Integration and Cross-Compatibility of Health and Personal Assistance Features Are Key Trends
- One of the major trends observed in this market is the advanced integration and cross-compatibility of personal health and personal assistance features in a single smartwatch. With the rapid emergence of the wearable technology globally, along with the fast growth in the sale of wearable fitness products, healthcare wearables and smartwatch manufacturers have been integrating each other’s expertise in a single compact product.
- Players in this market are investing increasingly in the cross-compatibility of personal health and personal assistance features in their offerings to cater to the vast next-generation market.
- Besides, cross-compatibility is also being witnessed in terms of platforms. To curb the rising demand for smartwatches that are multiplatform-friendly, companies are rolling out new products that are cross-platform compatible.
Growing Awareness of Personal Health and Fitness
- The rapid emergence of the wearable technology has made people more conscious of their health and fitness. With better access to technology, people are increasingly using advanced gadgets to maintain their fitness levels. In this context, fitness and health smartwatches help them in tracking their daily activities and reducing bad practices that may affect their wellness in the long run.
- The ability of smartwatches to seamlessly integrate day-to-day health-related activities into an application-based module that is accessible from a smart device, such as a smartphone or tablet, is adding to their popularity. These smartwatches are increasingly becoming popular among consumers (especially the age group 15‒35) who like to track and maintain their personal health and fitness schedules.
- According to a recent study, smartwatches and healthcare fitness wearables have raised awareness on tracking personal health among people and pushed their outlook toward a healthy future.
Shorter Battery Life of Smartwatches Is Key Challenge
- One of the prime concerns smartwatch users have been the shorter battery life of these devices compared to traditional watches. This can be seen as a major roadblock to the growth of the global smartwatch market.
- People in the 21st century look for products that make their life comfortable and hassle-free. The constant need to charge a smartwatch along with a smartphone is neither environment-friendly nor convenient.
- The adoption of smartwatches has been greatly hit by this factor, as according to a recent study, challenges faced by consumers who have been using a smartwatch for the past six months include shorter battery life and two charging cycles per day.
- Moreover, carrying two chargers, one for the smartphone and the other for the smartwatch, adds the factor of inconvenience, thus restraining many consumers from adopting smartwatches.
Smartwatch Industry Outlook
Product Type Insights
- The extension category holds the largest share, around 45%, attributed to the introduction of next-generation variants that can be used as an extension to smartphones and other similar devices.
- Besides, additional innovative applications, such as health tracking, alerts, and connectivity, which are compatible with extension smartwatches, have garnered consumer interest in recent years. This factor is expected to further increase the sales of these gadgets, particularly among the middle and upper-middle classes, during the forecast period.
- Besides, players have been increasingly investing in the design and development of economical products equipped with all basic smart features, which would drive growth in the sale of classic variants during the forecast period. For instance, in August 2021, Samsung Electronics Co. Ltd. launched the Samsung Galaxy Watch4 Classic, which combines health and fitness tracking with an improved gadget design.
- The standalone category is expected to witness the fastest growth in the forecast period, on account of the increasing launch of these products, their lower price, and feature-laden aspect.
Product types covered in the report include:
- Extension (Largest Category)
- Classic
- Standalone (Fastest-Growing Category)
Operating System Insights
- The iOS category holds an around 65% revenue share. This is attributed to the brand popularity of Apple and the presence of other devices with less-competent features. Apple’s watch software, watchOS, has grown significantly in popularity since its introduction and left many other OSs behind, with its competence and innovation.
- Due to this, the iOS category is also predicted to maintain its stronghold during the forecast period.
The following operating systems are included in the report:
- Android (Faster-Growing Category)
- iOS (Larger Category)
Application Insights
- Personal assistance is a major application, holding a share of over 50%, owing to a rise in consumers’ usage of smartwatches to ease their day-to-day activities. These include schedule tracking and sleep monitoring, along with routine assistance, such as instant access to messages and the ability to receive and make calls through a portable wearable device.
- Additionally, the developments to integrate more smart and assistive features in forthcoming launches are expected to continue as a trend.
- Medical is expected to witness the highest CAGR over the forecast period in this segment.
- The demand for such devices for health and medical purposes has been suggestive of a bright future for the industry. Young people and sports enthusiasts across the globe have shown huge interest in these gadgets as a medium to track and monitor their health, along with receiving timely medicine dosage and health checkup alerts.
- Moreover, offerings from companies such as Fitbit and Garmin have raised the consumer awareness beyond the adoption of smartwatches as a status symbol to their help with addressing medical and health needs. Further, the innovations in wearable medical devices with wireless access to hospitals and medical centers, for heartbeat tracking and blood flow analyses, are expected to increase their uptake during the forecast period.
Applications covered in the report are:
- Wellness
- Sports
- Medical (Fastest-Growing Category)
- Personal Assistance (Largest Category)
North America Is Largest Market
- North America, which makes the largest market revenue contribution, will witness a CAGR of around 9.5%, because a large number of people are spending on these gadgets here. North America is a key target region for prominent companies, such as Apple and Samsung. The brand loyalty and the high consumer status in North America have largely helped companies in cashing in on the consumer interest in such electronics.
- Moreover, the rising health awareness, increasing disposable income, affordability of such products, and advancing technology are driving the demand for these products in the region.
- In North America, the U.S. holds the major share, of around 75%, because of the rising interest of teenagers and young adults in these gadgets. Besides, the population of the country is larger than that of Canada, which contributes to the larger share of the U.S. in North America.
- Driven by the dominance of pocket-friendly smartwatches in China, advanced infrastructure in South Korea, and rising consumer interest in these devices in India, APAC will globally be the fastest-growing, with a CAGR of 9.9%, in the smartwatch market during the forecast period.
- Besides, the technological advancements by regional players, such as Titan, entry of large global players, growth in the use of utility watches, and increase in the demand for high-end wearable devices are expected to drive the APAC smartwatch market in the near future.
The regions and countries analyzed for this report include:
- North America (Largest Regional Market)
- U.S. (Larger Country Market)
- Canada (Faster-Growing Country Market)
- Europe
- Germany
- U.K.
- France (Fastest-Growing Country Market)
- Italy
- Spain (Largest Country Market)
- Rest of Europe
- Asia-Pacific (APAC) (Fastest-Growing Regional Market)
- China
- Japan (Fastest-Growing Country Market)
- India
- South Korea (Largest Country Market)
- Australia
- Rest of APAC
- Latin America (LATAM)
- Brazil (Largest and Fastest-Growing Country Market)
- Mexico
- Rest of LATAM
- Middle East and Africa (MEA)
- Saudi Arabia (Largest Country Market)
- South Africa
- U.A.E. (Fastest-Growing Country Market)
- Rest of MEA
Smartwatch Market Share
Product launches have been the major strategic initiatives taken by the key players in recent years. Seeing the growing demand for new models of smartwatches with next-generation features, such as touch displays and voice recognition, companies are rolling out new versions/updates and smarter models on a regular basis to maintain a strong position in the market.
Smartwatch Companies:
- Apple Inc.
- Samsung Electronics Co. Ltd.
- Garmin Ltd.
- Fitbit International Limited
- Fossil Group Inc.
- Huawei Technologies Co. Ltd.
- Xiaomi Corporation
- LG Electronics
- Sony Corporation
- TomTom International BV
- ASUSTeK Computer Inc.
Smartwatch Industry News
- In July 2023, Samsung Electronics Co. Ltd. announced the new Galaxy Watch6 Classic and Galaxy Watch6.
- In June 2023, Apple Inc. launched watchOS 10, an updated version of Apple Watch. It is launched with new hiking and cycling feature.
- In July 2023, Garmin Ltd. introduced two new ranges of smartwatches in India.
Frequently Asked Questions About This Report
The market for smartwatch will reach USD 42.3 billion in 2024.
The smartwatch market value will touch USD 73.3 billion in 2030.
The North America market for smartwatch is the largest.
The smartwatch industry in APAC will propel at a 9.9% CAGR during 2024–2030.
Incorporation and cross-compatibility of personal assistance and health features in a single smartwatch are the key smartwatch industry trends.
iOS operating system hold the larger smartwatch market share.
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