Smartwatch Market Size Worth USD 58.21 Billion by 2028 | Smartwatch Industry Expected CAGR 14.9%
The global smartwatch market size was valued at around USD 18.62 billion in 2020. The market is projected to rise from USD 22.02 billion in 2021 to USD 58.21 billion by 2028 at 14.9% CAGR during the forecast period 2021-2028. Fortune Business Insights™ has delved into these insights in its latest research report, titled, “Smartwatch Market, 2021-2028.”
According to the study, consumers are likely to exhibit demand for technological devices to streamline fitness tracking, navigation, and notification checking. End-users, such as athletes and tech users, are likely to invest in advanced products. Amidst the COVID-19 pandemic, strategic approaches may change to gain a competitive edge in the landscape.
Emphasis on Well-being Amidst Pandemic to Boost Product Adoption
The onslaught of the COVID-19 pandemic prompted end-users to shift their attention towards health and well-being. Accordingly, manufacturers have bolstered the production of a smartwatch for men and women. According to the National Interest.Org, the global smartwatch industry witnessed a 20% surge in the first half of 2020. The trend will likely maintain the upward growth trajectory over the next few years.
Fortune Business Insights™ lists out all the smartwatch market companies that are presently striving to reduce the impact of Covid-19 pandemic on the market:
- Apple Inc. (U.S.)
- The Samsung Group (South Korea)
- Garmin Ltd. (U.S.)
- Fitbit LLC (U.S.)
- Huawei Technologies (China)
- Fossil Group, Inc. (U.S.)
- Polar Electro (Finland)
- ASUSTek Computer Inc. (Taiwan)
- LG Electronics (South Korea)
- Xiaomi Inc. (China)
The report is prepared rigorously with the use of qualitative and quantitative analysis. The use of primary sources, including interviews of stakeholders and suppliers, has propelled the integrity of the report. The report also includes secondary sources, including annual reports, SEC filings and studies published by notable organizations. The report also includes top-down and bottom-up approaches to boost estimations and product mapping
Drivers and Restraints
Burgeoning Youth Population to Underpin Growth Potentials
An exponential rise in youth population across emerging- and advanced- economies could boost smartwatch market growth during the forecast period. Gen Z and millennials have shown profound interest in fitness tracking products and devices. Moreover, rising consumer expenditure among developed economies has triggered product adoption. According to the Trading Economics, rising per capita income across Ireland, Luxembourg, the U.K. and Germany will augur well for the business outlook.
While smart wearables will continue to gain ground, the prevalence of substitute products, including luxury watches and regular devices could challenge smartwatch manufacturers.
North America to Provide Compelling Opportunities with Rising Investments in Tech Devices
North America smartwatch market size was valued at around USD 7.13 billion in 2020 and will expand on the back of bullish investments in advanced products and devices. To illustrate, in September 2021, the U.S. Bureau of Labor Statistics stated that the average yearly expenditures for every consumer unit stood at USD 61,334. Moreover, in January 2020, the American Association of Retired Persons asserted that around 51% of older Americans claimed they purchased tech products in the past year.
Stakeholders are likely to inject funds into the European countries in the light of rising participation in physical activity. Moreover, youth consumers have exhibited a profound interest in smart wearable devices. Europe smartwatch market share will gain traction due to the dip in the youth unemployment rate in EU. The unemployment rate of the EU was 16.83% in 2019, a reduction from 18.02% in the preceding year. Millennials and the gen Z population are expected to seek wearables in the ensuing period.
Industry players are likely to envisage South America as a lucrative investment hub, partly due to the expanding penetration of the e-commerce industry. According to the Trade.Gov, the e-commerce industry in Brazil witnessed a 16% growth in 2019 compared to the preceding year. Emerging economies are likely to act as a catalyst towards the growth of advanced devices across the region.
In terms of operating system, the smartwatch market is segregated into android, IOS and others.
Based on end-user, the industry is segregated into male and female.
With respect to application, the market is fragmented into checking notifications, running, cycling, swimming and others.
On the basis of region, the market is segmented into North America, Asia Pacific, Europe, South America and the Middle East and Africa.
Industry Participants to Infuse Funds into Organic and Inorganic Strategies to Gain a Competitive Edge
Industry participants are expected to emphasize mergers & acquisitions, technological advancements, product rollouts and R&D activities. The competitiveness of the market is such that leading companies could invest in geographical expansion and product offerings.
Key Industry Developments
- September 2021: Samsung announced its smartwatch operating system partnership with Google to help better compete with Apple products.
- August 2020: Fitbit declared the launch of its Fitbit Sense smartwatch, which comes with advanced health features.