The demand for wearable AI devices is set to surge at a colossal compound annual growth rate (CAGR) of 27.6% from 2023 to 2033, reaching a staggering US$ 230 billion by 2033, courtesy of the widespread adoption of advanced technologies and an expansive smartphone market, according to a recently released report by Fact.MR. The global wearable AI market stood at US$ 20 billion in 2023, with the smartwatch segment enjoying a share of 29% in 2022.
The research study by Fact.MR outlines the multiple segments of the global wearable AI market, enabling a proficient analysis of key market segments such as solution, module, enterprise size, application, and region. The study also provides thorough insights into the strategies employed by industry leaders to maintain a competitive market edge. Incorporating AI into wearable devices boosts their functionality and performance, resulting in the comprehensive delivery of real-time data and statistics that aid informed decision-making and facilitate communication with users.
The market for wearable AI comprises intelligent devices like smartwatches, smart eyeglasses, and smart earphones. Pioneering industry players such as Samsung, Apple, and Sony are harnessing varied techniques to innovate and enhance technology, thereby stoking the demand for wearable AI products. Additionally, the growing infiltration of 5G smartphones is another factor propelling the market's expansion, due to smartphones' vital data collection and processing role, enhancing user accessibility and functionality.
Other driving factors of the wearable AI market include rapid urbanisation, increased disposable income in burgeoning economies, and increasing awareness of chronic diseases. Such factors have contributed significantly to the wearable technology sector's growth. The rising necessity for real-time health information and multimodal sentiment analysis have led to the widespread adoption of wearable gadgets such as fitness trackers, body monitors, and smartwatches.
North America tops the global wearable AI market due to its adoption of innovative technologies and the presence of key smartwatch manufacturing companies. The soaring demand for smartwatches in developed countries such as the US also significantly bolsters the market. Notably, North America captured 39% share of the global market in 2022, with the US being recognised as the market leader. Further evidence of this dominance includes a Pew Research Center survey indicating around double the number of U.S. adults routinely wear a wearable fitness tracker or wristwatch to enhance their health.
Future market competitiveness will be demonstratively shaped by player partnerships, investments, acquisitions, and new developments. A host of start-ups, enticed by market share, are pioneering innovative products. Highlighting this trend is the Indian start-up Silvertree, presently crafting attractive wearables for the elderly and vulnerable, complete with GPS monitoring and fall detection capabilities.
Of significant note are Apple's recent release of the Smart Watch Series 8 in September 2022 and the collaboration between Google and Samsung Electronics in May 2022 to create a consolidated Wear OS platform linking Android devices seamlessly, further strengthening the wearable AI market. Key players continue to focus on introducing new products and expanding their market presence through collaborations.