Wearable AI market to cross $180bn frontier by 2025
The Wearable AI Market is set to grow from its current market value of more than $35bn to over $180bn by 2025; as reported in the latest study by Global Market Insights. The explosive growth of smartwatches has been the primary factor propelling the wearable AI market. Continuous improvements in the design and functionality along with its availability at lower price increased its adoption among consumers.
Specifically, the introduction of LTE connectivity feature in smartwatches has provided customers with an alternative to bulky smartphones. Moreover, the convenience provided by smartwatches is promoting its usage among consumers across the globe.
The technological advancement in miniaturised electronics and mobile access to computational power is propelling the growth of the wearable AI industry. The advances led to the development of various advanced wearable sensory hardware offering minimally intrusive health monitoring platform for individual health service. This has provided consumers with a means to improve early stage detection of diseases along with reducing the overall costs associated with more intrusive standard diagnostic services.
The increasing data security concern regarding smart wearable devices is hindering the growth of the market as most of the smart wearable devices lack basic security mechanism. Moreover, high production costs and limited battery concerns are restraining its adoption among consumers.
The smartwatches and fitness bands market has dominated the wearable AI market with a market share of over 85% in 2018. Smartwatches allow users to track various activities such as heart rate, steps covered during the day, and calories burnt. Smartwatches are becoming increasingly popular among consumers, allowing consumers to make and receive calls and manage various notifications remotely.
The rising adoption of smartphones coupled with fast internet connectivity is driving the growth of the smartwatches and fitness bands market. The smartwatches and fitness bands market is currently dominated by large smartphone players, such as Apple, Samsung, and Xiaomi, which are leveraging on their global distribution network to increase their presence in the market.
The consumer electronics segment held over 90% share in the wearable AI market due to increasing usage of smart wearable devices by consumers to improve their lifestyle. Since the emergence of smartwatches and fitness bands, the popularity of wearable technology has grown exponentially among consumers as more and more individuals are relying on smart wearables to monitor their health vitals daily.
Large consumer electronics manufacturers, such as Apple, Samsung, and Huawei, are integrating advanced features into smart wearable devices to position them as standalone devices and reduce their dependence on smartphones.
The gaming market is projected to register a CAGR of over 35% during the forecast time period. This is attributed to the technological advancements in the AR/VR-based gaming software and hardware consoles. The integration of advanced video and audio graphics in the AR/VR-based immersive environments is rapidly gaining popularity in the gaming industry. The smart wearable device manufacturers present in the landscape are incorporating various next-gen technologies into their product offerings, such as interactive graphics and 3D effects, to offer more realistic experience to the gamers.
The Asia Pacific wearable AI market will grow at a CAGR of over 50% from 2019 to 2025 due to the increasing per capita income in countries including China and India, driving the usage of wearable AI devices in the region. The companies operating in the region are introducing various smart wearable devices with advanced features at affordable price points.
For instance, in May 2018, Xiaomi introduced Mi Band 3 at $30 that had built-in sensors such as optical heart rate sensor, acceleration sensor, and pedometer. The presence of major smartwatch manufacturers, such as Samsung and Xiaomi, is also further supplementing the adoption of smart wearable devices.
Europe accounted for over 25% share in the wearable AI market in 2018 due to the higher per capita income and spending patterns of consumers in the region. The large consumer electronic players operating in the region are incorporating advanced features into their product offerings to better compete with inexpensive products from foreign players entering the market. Companies with premium offerings, such as Apple and Facebook, hold a majority share in the region.
Some of the players operating in the wearable AI market are Apple, Samsung, Facebook, Fitbit, Garmin, Fossil, Xiaomi, Huawei, Microsoft, HTC, Bragi, Jabra, ANTVR, Huami, and Google.