Samsung Group - Oculus VR LLC (Facebook) - Alphabet Inc. - Sony Corporation - Fitbit Inc. - Xiaomi Inc. - Apple Inc. - Microsoft Corporation - DAQRI Company - AIQ Smart Clothing Inc. [Report Description] The Wearable Technology Market was valued at USD 27.91 billion in 2020, and it is anticipated to reach USD 74.03 billion by 2026, growing at a CAGR of 17.65 percent over the forecast period The development of MEMS sensors has led to an evolution in wearable technology. incorporating these sensors into a specific wearable device in response to the impact of daily smartphone use on the GPS or IMU (which consists of an accelerometer, gyroscope, and magnetometer). These have helped the wellness following wearable to screen body exercises utilizing these sensors.
Highlights The additional features, such as a brand that fits the everyday lifestyle, are also contributing to the rise of the smartwatch category. To maintain their revenues, established brands like Apple and Fossil are maintaining pricing levels that are comparable to those of conventional watches. Numerous additional premium watchmakers, including TAG and Armani, have entered the market thanks to Google's WearOS. By 2022, there will be 1,105 million connected wearable devices worldwide, up from 593 million in 2018, according to Cisco Systems.
Because wearable manufacturers like Apple and Fitbit are adding health-monitoring features that are appealing to older people and keep them updated about their health status in real time, smartwatches are seeing a surge in new users, including the older population. For example, Apple includes a fall identification application and an EKG screen to the Apple Watch Series 4, while Fitbit added an element to recognize rest apnea. It is anticipated that diabetics will be able to monitor their glucose levels with the help of the next-generation Apple watches. Additionally, the company worked with L Oreal to develop the first skin sensor that can distinguish between UVA and UVB rays.
Apple Inc.'s collection of wearable products and accessories, which appears well on its way to becoming its second most significant line of products after the iPhone and its third-largest business category overall after its smartphone and services segment, generated nearly as much revenue at the end of the fiscal year 2019 as did sales of its old Mac computers. The company's expanding wearables and accessories division played a role in compensating for the drop in iPhone sales. In the final quarter of 2019, sales of wearable and accessory products increased by 54% to USD 6.5 billion from the previous year.
In 2020 and beyond, new competitors are anticipated, and Amazon is reportedly already attempting to compete. With Alexa-enabled earpods, it was reported in April 2019 that Amazon was entering the wearables market. The existing players in the wearables market will likely be severely challenged by Amazon's entry. According to reports, the earbuds produced by Amazon's Lab126 hardware division have gesture controls for controlling music and taking calls. However, as the technological capabilities of smart wearables increase, market expansion will likely be hampered by data security and complexity issues. Nevertheless, these issues should be addressed in the coming years by ongoing smart wearable research.
Due to the supply chain's significant disruption following the declaration of COVID-19 as a pandemic, it is anticipated that the disease will have a significant impact on the wearables market in 2020 and the first two quarters of the year after. The lockdown has impacted the production schedules in Asian nations like China, India, South Korea, Taiwan, and Japan, which have a significant presence as manufacturers of the raw materials used in the manufacturing of wearable products. The deals have been down as the lockdown in most worldwide economies has brought about conveyances restricted to basics and has brought about organizations overhauling their income targets.
Key Market Patterns
Head-Mounted Show is Supposed to Observe Critical Development
Inferable from increased, virtual, and blended reality, advanced projections are overlaid to genuine articles, giving logical data, and permitting clients to outwardly control their environmental elements. Head-mounted displays (HMDs) have grown in popularity despite the fact that smartphones, tablets, and a plethora of other devices make these technologies possible.
Virtual reality (VR) and augmented reality (AR) are the main applications for immersive head-mounted displays (HMDs). Cost, availability, ergonomics, unfashionable design, and other factors have limited mainstream usage by consumers. The internal use of AR HMDs as hands-free tools for business process improvement and training is the primary driver of their adoption in businesses.
Additionally, the gaming industry is expanding globally. For instance, by 2020, virtual reality and augmented reality gaming in South Korea is anticipated to reach KRW 5.7 trillion. Similarly, The National (UAE) predicts that the market for virtual reality gaming in the MENA region will reach USD 6000 million by 2020, up from USD 181.59 million in 2017.
Microsoft and Nintendo, two major manufacturers of gaming consoles, have recognized the potential of augmented reality and are leading the charge. AR can transport gamers into the real world to play and free them from "their world." For instance, the game Human Pac-Man lets players pretend to be Pac-Man characters by wearing goggles and chasing each other in real life. For many gamers, holding a mobile device is insufficient for augmented reality gaming. Console gadgets can make it up to that, to a degree.
Two-thirds of respondents to a survey that Ericsson Consumer Lab (2019) surveyed included people between the ages of 15 and 69 in Brazil, China, France, Japan, South Korea, the UK, and the United States. 32% of users agreed that incorporating physical activity and exercise into AR games would make them more engaging.
It is anticipated that North America will hold a significant share. North America is renowned as the global hub for all significant technological advancements. Wearable technologies that are more powerful and sophisticated are in high demand as smart gadgets become more commonplace. Some of the primary drivers of this region are an increase in disposable income and the rapid adoption and popularity of enhanced devices. Additionally, the region is well-represented by wearable device manufacturers like Apple, Fitbit, and Garmin, which contributes to the market's expansion.
It is anticipated that the expansion of wearables in the region will be fueled by the increasing investments made by numerous sports associations to reduce the likelihood of highly compensated professional athletes suffering injuries that could have been avoided. For instance, the basketball team Golden State Warriors, which is based in the United States, is collaborating with the smart clothing company Athos to use these products for injury prevention and player performance optimization. The athletics industry in the United States has only a small stake in the smart clothing industry thanks to this investment.
In addition to the United States, Canada is seeing an increase in wearable device demand. It is anticipated that the nation will spend and fund adequately its military programs (including clothing). In November 2019, Bell filed patent applications in the United States and Canada that provide a comprehensive vision for how its wearable technology could be utilized by individuals seeking to monitor ill loved ones as well as by institutions seeking to track large populations.
By capitalizing on the mid-range of the American watch market, Apple, Samsung, and Fitbit have risen to the top of the watch best-seller list. The US deals of smartwatches are blasting. They rose 24% in esteem in the U.S. for the principal half of 2019 versus a similar period in 2018. In addition, smartwatch dollar sales increased by 51% and unit sales increased by 61% for the entire year in 2018.
Landscape of Competitors There are a lot of big companies competing in the wearable technology market. However, companies like Samsung, Apple, and Xiaomi hold a sizable portion of the market. The wearable technology industry is also attracting a lot of startups, which is making the market more competitive. As a result, businesses are constantly investing in new products, expanding operations, or strategic mergers and acquisitions in order to maintain a competitive edge in this market.
In May 2020, Google spent USD 40 million to acquire intellectual property from Fossil. In November 2019, Alphabet, the parent company of Google, announced that it would acquire Fitbit for USD 2.1 billion. An optical sensor that would be embedded in the body of a smartwatch is proposed in the patent application. The Pixel Watch is expected to be unveiled by the company in 2020. The sensor would be able to read gestures made by the wrist, arms, and fingers of the wearer.
In an April 2020 post on the Chinese social network Weibo, Xiaomi's Huami subsidiary confirmed that the Mi Band 5 would be available in 2020. The Amazfit Ares, a brand-new product that the company just launched, will be part of the Amazfit line. Huami also said that the Amazfit Ares would have 70 different sports modes and look like an "urban outdoor" rugged device.
