Smartwatch Market Size & Forecast

The Smartwatch Market is expected to reach $78.2 billion by 2031, at a CAGR of 8.9% from 2024 to 2031. By volume, this market is expected to reach 801.3 million units by 2031, at a CAGR of 21.8% from 2024 to 2031. The growth of this market can be attributed to several factors: the growing emphasis on health & fitness tracking, rising technological advancement in wearable devices, and the growing popularity of fashion-forward design. Moreover, the increasing demand for personalized AI assistance is expected to offer growth opportunities for the players operating in this market.

Smartwatch Market Growth Drivers

Growing Emphasis on Health & Fitness Tracking

The surge in health & fitness tracking capabilities of smartwatches mirrors a wider societal shift towards prioritizing well-being. As people become increasingly aware of the significance of regular physical activity, balanced nutrition, and holistic health, they are seeking accessible methods to monitor and enhance their well-being.

Smartwatches serve as a convenient avenue by amalgamating various sensors and technologies that monitor a plethora of health metrics, such as heart rate, steps taken, calories expended, sleep patterns, and even stress levels. By furnishing users with real-time insights into their activity levels and health status, these devices empower individuals to make informed choices about their lifestyle practices.

Additionally, the incorporation of gamification elements in health & fitness tracking injects an element of amusement and encouragement. Through setting objectives, engaging in friendly competition, and receiving rewards for accomplishing milestones, users are motivated to sustain healthy behaviors in the long run. Consequently, the advantages offered by smartwatches are propelling the expansion of this market segment.

Some of the recent developments in this space are as follows:

• In January 2024, Samsung Electronics Co., Ltd. (South Korea) launched its blood pressure and electrocardiogram (ECG) tracking features for the Galaxy Watch6 series for the first time in India through an OTA (over-the-air) rollout. With the Samsung Health Monitor BP and ECG tracking on the Galaxy Watch 6 series, users can now conveniently monitor their health, support their fitness regimes, and enable regular health checkups.
• In September 2022, Apple Inc. (U.S.) introduced its Apple Watch Series 8 and the new Apple Watch SE. Apple Watch Series 8 delivers best-in-class health features, including an innovative temperature sensor that enables advanced features for women’s health and Crash Detection for severe car crashes.

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Growing Popularity of Fashion-forward Design

The surging demand for fashion-forward design is a pivotal force propelling the smartwatch market forward. Evolving from mere functional gadgets to stylish accessories, smartwatches now cater to consumers' desire for both cutting-edge technology and aesthetic appeal. With an array of customization options available, users can personalize their devices with interchangeable straps, diverse watch faces, and even tailor-made features. This level of personalization empowers individuals to showcase their uniqueness and align their smartwatch with their distinct style preferences.

The burgeoning popularity of fashion-forward design signifies a paradigm shift towards wearable technology that not only elevates everyday functionality but also harmonizes with personal style and fashion inclinations. As this trend continues to gain momentum, smartwatches are increasingly becoming indispensable elements of contemporary fashion and lifestyle choices.

Smartwatch Market Opportunity

Increasing Demand for Personalized AI Assistance

The surging demand for personalized AI assistance seamlessly integrated into smartwatches reflects a desire for technology to effortlessly blend into daily routines, emphasizing convenience, efficacy, and tailored interactions.

These AI assistants, tailored to individual users, harness data, preferences, and habits to provide bespoke recommendations and suggestions. From proposing personalized workout regimens to suggesting nearby dining spots based on past choices, these assistants enrich user experiences by delivering pertinent and timely information.

Moreover, personalized AI assistants on smartwatches play a pivotal role in supporting health and wellness objectives. They track fitness endeavors, monitor vital signs, and dispense tailored health advice. By analyzing sleep patterns, advocating lifestyle adjustments for better well-being, and furnishing motivation to achieve fitness milestones, these assistants contribute significantly to users' holistic health goals.

In essence, the advantages presented by smartwatches are paving the way for robust growth opportunities in the market.

Smartwatch Market Trend

The relentless pursuit of seamless connectivity remains paramount in the evolution of smartwatches. Advancements in this realm are geared towards bolstering connectivity with smartphones, enabling users to make calls, send messages, and receive notifications without the need to constantly reach for their phones. This trend holds particular significance for individuals prioritizing convenience and efficiency in their daily routines. A prime example of this trend is exemplified by the Samsung Galaxy Watch 5 Pro, which stands out for its seamless integration with outdoor activities, ensuring users can stay connected and informed without interrupting their outdoor pursuits.

The escalating demand for connectivity and communication enhancements in smartwatches underscores a longing for devices that offer effortless connectivity, enriched communication functionalities, and expanded utility. Ultimately, these advancements serve to enhance the user experience, empowering individuals to remain seamlessly connected, well-informed, and in control regardless of their location or activity.

Smartwatch Market Analysis: Key Findings

By Operating System: In 2024, the iOS Segment to Dominate the Smartwatch Market

In 2024, the iOS segment is expected to account for the largest share of 54.0% of the smartwatch market. The segment’s large share is attributed to the technological advancements in the iOS operating system, growing emphasis on health & wellness monitoring, strong penetration of Apple products, and increasing demand for connectivity and communication upgrades. In addition, the benefits offered by the iOS segment, such as seamless integration with the Apple ecosystem, health & fitness tracking, security privacy, and personal safety features, contribute to this segment's growth. Also, this segment is projected to register the highest CAGR during the forecast period of 2024–2031.

By Display Type: In 2024, the Food & Beverages Segment to Dominate the Smartwatch Market

In 2024, the AMOLED segment is expected to account for the largest share of 75.0% of the smartwatch market. The segment’s large share is attributed to the rising demand for high image quality & low power consumption and the increasing need for wider angles without distortion of picture quality. In addition, the benefits offered by the AMOLED segment, such as better outdoor visibility, wider viewing angles, thin and lightweight design, and lower power consumption, contribute to this segment's growth. Also, several leading key players are taking initiatives to redefine their business strategies. For instance, in May 2023, Garmin International, Inc. (U.S.) launched its Epix Pro Series, its next-gen high-performance GPS smartwatch with a crystal-clear AMOLED display, rugged design, and impressive battery life. Also, this segment is projected to register the highest CAGR during the forecast period of 2024–2031.

By Sales Channel: In 2024, the Offline Segment to Dominate the Smartwatch Market

In 2024, the offline segment is expected to account for the larger share of 70.0% of the smartwatch market. The segment’s large share is attributed to personalized customer interactions, local market presence, and tangible product experiences.

However, the online segment is projected to register the highest CAGR during the forecast period of 2024–2031. The growing preference for personalization, contactless shopping, consumer convenience, easy price comparisons between brands, the advantage of greater discounts compared to offline stores, and a greater product selection experience are some of the factors expected to support the growth of this segment.

By Application: In 2024, the Personal Assistance Segment to Dominate the Smartwatch Market

In 2024, the personal assistance segment is expected to account for the largest share of 40.0% of the smartwatch market. The segment’s large share is attributed to the rising demand for personalized fitness coaching, increasing demand for personalized AI assistance, the growing popularity of fashion-forward design, and the rising demand for task management and reminders.

However, the health/wellness segment is projected to register the highest CAGR during the forecast period of 2024–2031. The growing emphasis on health & fitness tracking and rising consumer awareness regarding health monitoring are expected to support the growth of this segment. In addition, the benefits offered by the health/wellness segment, such as sleep tracking, fitness tracking, blood oxygen level monitoring, and heart health monitoring, contribute to this segment's growth. Also, several leading key players are taking initiatives to improve productivity. For instance, in July 2023, Samsung Electronics Co., Ltd. (South Korea) launched its new Galaxy Watch6 and Galaxy Watch6 Classic. This new Galaxy Watch6 series provides personalized health guidance, purposeful design upgrades, and an enhanced mobile experience for a more informed and healthier self.

Geographical Analysis

In 2024, Asia-Pacific Region to Dominate the Smartwatch Market

In 2024, Asia-Pacific is expected to account for the largest share of 43.0% of the smartwatch market. Asia-Pacific’s large market share is attributed to the increasing penetration rate of urbanization, growing emphasis on health & fitness tracking, and rising technological advancement in wearable devices. Furthermore, the presence of prominent players offering smartwatches supports market growth. For instance, in June 2022, Garmin International, Inc. (U.S.) launched its vívosmart 5 in India, a comfortable, easy-to-read smart fitness tracker featuring Garmin’s most advanced sleep features, including sleep score.

In addition, the adoption of Western lifestyles and the rise in disposable income are predicted to fuel the smartwatch market's expansion. Moreover, the Asia-Pacific region is projected to register the highest CAGR of 10.0% during the forecast period. The rapid growth of this regional market is attributed to the growth in regional economies and the growing popularity of fashion-forward design, especially in China, Japan, South Korea, and India.

Smartwatch Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the smartwatch market are Apple Inc. (U.S.), Samsung Electronics Co., Ltd. (South Korea), Fossil Group, Inc. (U.S.), Garmin International, Inc. (U.S.), Fitbit Inc. (U.S.) (A part of Google LLC), Huawei Technologies Co., Ltd. (China), Sony Corporation (Japan), LG Electronics, Inc. (South Korea), Boltt Games Pvt. Ltd. (India), ASUSTeK Computer Inc. (Taiwan), Honor Device Co., Ltd. (China), and Polar Electro (Finland).

Smartwatch Industry Overview: Latest Developments from Key Industry Players

• In September 2023, Apple Inc. (U.S.) introduced its new Apple Watch Series 9. This new series offers double-tap gestures, a brighter display, faster on-device Siri, the ability to access and log health data, precision finding for iPhone, and more. 
• In July 2023, Garmin India, a unit of Garmin International, Inc. (U.S.), launched its two powerful and feature-rich outdoor smartwatch series in India: the fēnix 7 Pro and Epix Pro Series. These next-generation smartwatches are designed to meet the demands of athletes, adventurers, and fitness enthusiasts, providing them with the ultimate performance and tracking capabilities.
• In January 2022, Fossil Group, Inc. (U.S.) collaborated with Razer Inc. (U.S.) to launch the Razer X Fossil Gen 6 smartwatch for gamers.

Smartwatch Market Research Summary

Key questions answered in the smartwatch market report: