Wearable AI Market

Wearable AI Market Outlook (2023 to 2033)

The global wearable AI market is valued at US$ 20 billion in 2023 and is anticipated to jump to US$ 230 billion by 2033, surging ahead at a CAGR of 27.6% during the forecast period (2023 to 2033).

Wearable AI refers to artificial intelligence-enabled gadgets that are worn on the human body. The fundamental function of these wearable AI gadgets is to collect and analyze various health-related data. AI technology enhances current wearable device capabilities by incorporating features such as machine learning, analytics, and more real-time actionable visual and audio feedback.

The COVID-19 outbreak initially had a major impact on the global market. Several manufacturers and retailers suffered losses as a result of the lockdown enacted by various governments. Nonetheless, the demand for wearable AI devices grew gradually due to rising telemedicine demand.

Due to the social distancing norm, medical practitioners moved to telemedicine, which enabled them to treat patients virtually without risking viral spread. Furthermore, researchers examined data from AI devices to monitor patients with coronavirus symptoms.

• For instance, in 2020, scientists at the University of California, San Francisco, used the Oura ring from Oura Health Ltd. to examine the physiological data obtained by the ring to predict the beginning, development, and recovery of new coronavirus cases.

Moreover, various wearable manufacturers began upgrading their products to aid in the early diagnosis of COVID-19. Algorithms for measuring respiratory activities were developed. This allowed fewer affected persons to be monitored remotely, reducing the strain on hospitals. Numerous market players invested heavily in R&D to include COVID-19 tracking technology in wearables.

• For example, Masimo SafetyNet, a disposable fingertip attachment placed on a wearable bracelet, assisted in tracking a patient's breathing rate, blood oxygen levels, and pulse outside and inside a hospital setting.

Smart devices such as smartwatches, smart earwear, smart eyewear, and others are in high demand for a variety of applications. E-payments via wearables are a new market trend.

• Sony released the Wena 3, a smartwatch that can be utilized as a conventional watch but supports mobile payments via Barclaycard in the United Kingdom, in May 2022.

Furthermore, numerous market participants are focusing on gen Z and launching advanced AI-enabled wearable products.

• For example, Noise introduced its eyewear, the Noise i1, in June 2022. By linking to smartwatches via Bluetooth, it provides wireless music streaming and voice help. Noise i1 also lets users answer or decline phone calls, play or pause music, and activate the voice assistant on the phone.

According to Fact.MR, a market research and competitive intelligence provider, such factors are predicted to raise the global demand for wearable AI devices substantially over the next ten years.

Report Attributes	Details
Wearable AI Market Size in 2023	US$ 20 Billion
Projected Market Value (2033)	US$ 230 Billion
Global Market Growth Rate (2023 to 2033)	27.6% CAGR
North America Market Share (2022)	39%
Smartwatches Segment Market Share (2022)	29%
Key Companies Profiled	Amazon Biobeats Apple Atlas Fitbit Bragi Focusmotion Garmin Huawei Google

Why is the Global Wearable AI Market Experiencing Rapid Expansion?

“Rising Demand for AI Assistants”

Intelligent virtual assistants handle large amounts of data, facilitate successful communication, and perform intelligent activities such as speech recognition, visual perception, and decision-making that would otherwise necessitate human intelligence and involvement.

Additionally, virtual assistants can create an emotional association that is specifically tailored to a customer's decision-making process. Furthermore, virtual assistants can create meaningful online interactions as a substitute for human support, increasing customer engagement and satisfaction. Virtual assistants are also being used in the wellness and sports industries. AI-powered wearables collect a large quantity of data to learn from the behavioral patterns of athletes and users based on specific physiological indicators.

“Substantial Investments in AI Technology”

Organizations are extensively investing in the development and advancement of AI technology.

• Intel revealed a US$ 132 million global investment plan in 11 start-up companies focused on AI, automation, and chip design in May 2021.

Furthermore, firms are partnering, investing in other companies, and absorbing businesses to improve technologies and produce more sophisticated AI-based wearable gadgets.

Which Factor Can Adversely Impact the Sales of Wearable AI Devices in the Long Run?

“Shorter Life Cycle of Smart Wearables”

The consumer electronics industry is a continually changing marketplace. As new technologies emerge, items using older technologies lose value. Companies struggle to keep pace with technological breakthroughs since technology evolves when engineers create a prototype.

New technologies are being created at a quick rate and are being incorporated into numerous goods to provide extra capabilities. Customers prefer more feature-rich, technologically advanced products. To keep up with the rapid growth of the wearable technology sector, businesses must adopt new technologies and shorten design and production cycles.

Country-wise Insights

Why is the United States a Major Contributor to the North American Market?

“High Usage of Smartwatches in the Country”

• North America held 39% share of the global market for wearable AI in 2022, led by the United States.

This high market share is mainly due to the early acceptance of this technology, the rising popularity of wearable devices, the growing demand for innovative consumer electronics, and rising investment in AI technology. The United States is contributing majorly to the regional market due to the increasing adoption of smartwatches in the country.

• As per a Pew Research Center survey performed in June 2021, roughly one-in-five U.S. adults routinely wear a wearable fitness tracker or smartwatch to improve their health.

Moreover, the rising incidence of obesity and diabetes, as well as increasing awareness and a shift in the population's lifestyle toward a healthy and fit lifestyle, are driving market expansion in the United States.

Why are South Korea and Japan Important Markets in Asia Pacific?

“Strong Investments in Advancement of AI Technology”

The Asia Pacific market is growing at a tremendous pace. Asia Pacific has densely populated countries, which raises consumer electronics usage. Moreover, the middle class in emerging economies in Asia Pacific has grown significantly over the previous decade.

• According to the World Bank, the Asia Pacific middle class has grown from 525 million in 2009 to 1,700 million in 2018 and is expected to reach 3,000 million by 2030.

As a result, the consumer spending pattern has shifted significantly toward consumer electronics. This pushes smart device producers to capitalize on changing lifestyles and rising customer spending trends in emerging markets.

South Korea and Japan are important markets in Asia Pacific. Numerous companies in South Korea and Japan are heavily investing in the advancement of AI technology. Major technology companies such as Sony are keen on developing advanced wearable AI gadgets.

• For example, in 2021, Sony Corp launched the Sony Wena bands, which allow basic fitness monitoring, watch-based contactless payment, and notification access from the linked phone.

Furthermore, manufacturers of wearable devices in these countries are constantly improving and innovating wearable devices to get a competitive advantage and boost their growth.

Which Factor is Fueling Market Growth in Germany?

“High Demand for Smart Earwear”

Demand for smart wearables is skyrocketing in Europe due to growing awareness among people regarding fitness, the availability of high-speed internet, and technological improvements.

Germany is seeing a surge in demand for smart earwear due to remote employees upgrading their headphones for video calling and gen Z and millennials purchasing AI-enabled headphones. As a result, many German players are concentrating on offering innovative smart earwear to gain market share.

• Montblanc, a German brand, debuted smart headphones in March 2021. It comes with Google Assistant and can link to a range of Bluetooth devices, and its ergonomic design adds to the overall comfort.
• Jabra, a German business that specializes in audio equipment and video conference systems, introduced smart headphones in October 2021. The new headphones have microphones with wind noise reduction and enhanced speech capabilities via a dedicated Siri button/Google Now.

Category-wise Insights

Why is Demand for Smartwatches Escalating?

“Increasing Health Awareness and Disposable Income”

• Smartwatches accounted for 29% share of the worldwide market in 2022.

This is due to growing health awareness and disposable income. Smartwatches offer real-time health status assessment as well as multimodal sentiment analysis. Newly designed smartwatches are outfitted with certain distinctive, sophisticated capabilities that aid in the monitoring of health-related disorders as well as making the diagnosis procedure more effective and comfortable for both healthcare providers and patients.

• Fitbit announced its new smartwatch, Sense, in August 2021, with technologically enhanced health tracking capabilities such as skin temperature sensing, electrodermal activity (EDA), Sp02 sensor for oxygen saturation testing, and others.

Furthermore, the increasing penetration of smartphones is boosting the use of smartwatches. Such factors are raising the usage of smartwatches.

Competitive Landscape

Key players in the wearable AI market are focusing on partnerships, investments, acquisitions, and new developments to widen and maintain their overseas footprint. Moreover, several start-ups are working on offering innovative products to obtain market share.

• Silvertree, an Indian-based start-up, is working on creating attractive wearables for the elderly and vulnerable people, equipped with GPS monitoring, "fall detection" that notifies a safety team, and a month-long battery.
• Apple released the Apple Smart Watch Series 8 in September 2022. The Apple Watch Series 8 has temperature sensing for insights into women's health, vehicle collision detection, and sleep stages to understand sleep habits better.
• Google and Samsung Electronics joined forces in May 2022 to create a single Wear OS platform that links Android devices smoothly. The platform involves Google Play, which allows users access to some of Google's most popular apps and services, including Google Pay, Google Maps, and YouTube Music. This allows Galaxy Watch4 users to download Google Assistant2 on their devices, giving them access to faster, more natural voice interactions, rapid responses to questions, and on-the-go assistance.

Key Segments of Wearable AI Industry Research

• By Product :

  • Smartwatches
  • Ear Wear
  • Eye Wear
  • Others

• By Operation :

  • On-device AI
  • Cloud-based AI

• By Component :

  • Processors
  • Connectivity ICs
  • Sensors

• By Application :

  • Consumer Electronics
  • Healthcare
  • Automotive
  • Military & Defense
  • Media & Entertainment
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific & China
  • Middle East & Africa