Smartwatch Market Size (2024 - 2029)

Smartwatch Market Analysis

The Smartwatch Market size in terms of shipment volume is expected to grow from 171.38 Million units in 2024 to 583.81 Million units by 2029, at a CAGR of 27.78% during the forecast period (2024-2029).

Due to the rising penetration rates of urbanization, the demand for aesthetically appealing advanced products to better serve the consumers' requirements, such as time schedules and multiple features in one device, has been driving the global need for smartwatches. Moreover, the vast millennial population has been adopting smartwatches due to increased spending on tracking and luxury standards for their regular work hours.

• Smartwatches are designed to be paired with smartphones (via Bluetooth), which function as information gateways so that these watches can share phone notifications, such as text messages, email notices, or application alerts. However, smartwatches are not interchangeable since they can usually only be paired with a limited number of compatible smartphones. For instance, Samsung's Gear A smartwatch only works with Samsung Galaxy series smartphones, and the Apple Watch only works with iPhones. As a result, current smartwatches available from mobile device manufacturing companies are more like smartphone accessories than standalone devices since they require access to a compatible smartphone to relay additional useful information to their owners.

• Changing lifestyles and readiness for technology adoption in lifestyle solutions have increased the demand for wearable technology. This demand has been supported by new product launches and entrants venturing into the market. As more companies venture into the smartwatch market, the need to differentiate their product offerings becomes essential. For instance, in November 2023, Zepp Health Corporation ("Zepp Health"), a global player in smart wearables and health technology, announced the highly-anticipated launch of the Amazfit Balance in India. Designed with precision, the Amazfit Balance aims to help users achieve a harmonious balance between their personal, professional, and well-being pursuits. Building on the popularity of its predecessors, the Amazfit GTR and GTS, the Amazfit Balance seamlessly blends advanced technology with features that have captivated a global audience.

• Increasing health consciousness among consumers is a crucial factor driving the growth of the smartwatch market. A smartwatch enables them to take necessary precautions according to their health. Furthermore, doctors can easily monitor the health status of patients remotely and can maintain, prescribe, or treat them as required. For instance, all the new Apple Watches since Series 5 can track heart rate, nervous system activities, emergency or inactivity warnings, and health events.

• Furthermore, smartwatches provide quick access to notifications, messages, calls, and apps without a smartphone. This convenience attracts users seeking a more streamlined and efficient way to stay connected. Also, improvements in battery life, display quality, and processing power make smartwatches more functional and appealing. Enhanced features like GPS, contactless payments, and voice assistants add to their attractiveness.

• Although the adoption of wearables has gained traction for the past few years, the concern over data privacy persists. Moreover, for smartwatches, the target consumers are individuals whose data security awareness is relatively low compared to enterprises. Even though data from smartwatches are not information-rich, risks may increase further if the device supports internet connectivity, as they can be operated away from the paired device. Payment services can be misused in such cases.

• Moreover, the conflict has caused significant disruptions in global supply chains. Ukraine and Russia are significant suppliers of raw materials like palladium and neon gas, which are essential for semiconductor production. These disruptions can lead to shortages and delays in producing smartwatches and other electronics. At the same time, rising costs of materials and logistics due to the conflict can increase the overall production costs for smartwatches. Manufacturers may pass these costs onto consumers, resulting in higher prices that may dampen demand.

Smartwatch Industry Segmentation

A smartwatch is a portable gadget worn on the wrist that supports apps and, in certain situations, works as an extension of the cell phone. Depending on the manufacturer and model, they offer a variety of functions that can have a significant impact on day-to-day life. Many people use smartwatches to keep track of their health or manage emails, texts, and phone conversations without carrying their phones. The market studied is segmented by operating system (watch OS, wear OS and other operating systems), display type (AMOLED, PMOLED, TFT LCD), application (personal assistance, medical, sports, and other applications), and geography (North America, Europe, Asia-Pacific, and Rest of the World). The market sizes and forecasts are provided in terms of value USD for all the above segments.