Potential Opportunity worth $250 Bn Opening Up in Wearables as Wristwear Heads to ~$100 Bn Sales Revenue

CHICAGO, Jan. 17, 2022 /PRNewswire/ -- With wristwear heading to ~$100 Bn sales revenue and emerging companies leaning towards Direct-to-Consumer strategies, a potential revenue opportunity worth $250 Bn is expected to be created in the wearables space.

The global wearable technology market is projected to be valued at $265 Bn by 2026, more than half of this growth is contributed by the consumer electronics segment. This growth is attributed to the demanding lifestyle in developed and developing countries as well as increasing advancements in wearable products such as smart goggles, wristbands, and smart shoes.

Adjacent markets hold a potential of over $125 Bn in wearable technology, majority of which will be contributed by wearable payment devices and wearable healthcare devices.

According to MarketsandMarkets analysis,

• $250 Bn of potential opportunity is opening up as wearables to $100 Bn sales revenue, of which AI-based virtual assistance was one of the most talked-about trends in 2021.
• Wearable technology market is estimated to grow at a healthy CAGR of 18-20% in the coming 5 years, driven by rising popularity of IoT and connected devices and growing consumer preference for sleek and compact devices in fitness and healthcare applications.
• We are witnessing increasing adoption of AI, IoT, contactless payments, health tracking etc., which can disrupt the demand for wearable devices, in turn impacting the growth of the market.
• It is predicted that by 2026, there will be 1.2 billion wearable products shipped worldwide.
• Currently, businesses have low access to primary intelligence to clarify some unknowns and adjacencies in these opportunity areas –
• Adoption levels of automation in wearables is low. Currently, it ranges between 30-40% globally, however, in developed countries it is approaching 50%. As automation reduces TAT and helps in minimization of errors and provides reproducible results, it is largely used in consumer electronics and healthcare applications
• Increasing focus on personalized health tracking drive the wearables market
• Markets such as wearables in healthcare, wearables in automotive, and wearables in manufacturing provide immense growth opportunities, owing to rising popularity of IoT and connected devices
• In target enrichment, developed countries use compact devices are mostly preferred

Some of the growth problems encountered by wearables companies are: