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The global wearable electronics market is expected to post a CAGR of more than 15% during the period 2019-2023, according to the latest market research report by Technavio.
A key factor driving the growth of the global wearable electronics market is the increasing digitization of the global economy. With the growing Internet penetration, the growing mobile subscriber base, and the rising number of IoT devices, an increasing number of developed and emerging economies across the world are witnessing a significant surge in digitization. As a result, there has been a substantial increase in the integration of advanced technologies such as AI, VR, and contactless payments into wearable electronics devices. This is resulting in the rising demand for wearable electronic devices. Apart from these factors, the development of a mobile app ecosystem will also play a vital role in the growth of the market during the forecast period.
As per Technavio, the growing focus on the development of low-powered electronics will have a positive impact on the market and contribute to its growth significantly over the forecast period. This global wearable electronics market 2019-2023 research report also analyzes other important trends and market drivers that will affect market growth over 2019-2023.
The growing popularity of wearable electronic devices such as smart bands, smart rings, smart watches, and HMDs are resulting in the rising need for high performance and low-power consumption electronics. There is a high demand for low-power-consumption electronic components such as sensors, processors, and batteries. As a result, companies are increasingly adopting low power consumption components, from processors to new IMUs, which will help them enhance the performance of their wearable electronics. Further, wearable electronic devices have been using CPUs which had phone architecture shrunk for a watch. However, the usage pattern of the user for wearable electronic devices is different from smartphones. Thus, manufacturers have developed a new processor architecture with large, small, and tiny cores. The optimization of these processors increases their battery life, making them reliable.
“Apart from the growing focus on the development of low-powered electronics, factors such as the growing number of partnerships and M&A activities, development of miniaturized electronic components, and the emergence of hybrid smartwatch market will have a key impact on the growth of the wearable electronics market during the forecast period,” says a senior research analyst at Technavio.
This market research report segments the global wearable electronics market by product (smartwatches, wireless headphones, HMDs, smart bands, and smart clothing) and geographic regions (North America, APAC, Europe, South America, and MEA).
The North American region led the market in 2018, followed by Europe, Asia, and ROW respectively. The market growth in North American can be attributed to the growing ecosystem of connected devices, constant technological advances, and the presence of large crowdfunding platforms such as Kickstarter and Indiegogo.