According to the new research report published by The Insight Partners, titled “Wearable Technology Market - Global Analysis and Forecast to 2025”, the global wearable technology market is expected to reach US$ 170.91 billion in 2025, registering a CAGR of 20.8% during the forecast period 2016 to 2025.
In 2015, North America accounted for the largest revenue share of little less than two-fifth of the total market share, followed by Europe.
Fitness bands and smart watches have emerged as one the prime revenue sources and has experienced a high adoption rate, highly growing demographics across the regions and increasing awareness among end users about the potential benefits of wearable technology is expected to accelerate the wearable technology market in the coming years.
The growing wearable technology market of tablets and smartphones and tablets is allowing the integration of smartphones with wearable devices. Wrist wear segment of wearable technology captures the largest share of the wearable technology market and is projected to lead the market during the predicted period. The inception of smart watches by companies such as Apple, Nike and Samsung among others has contributed to the growth of the market. North America has deep penetration for wearable devices due to early adoption of innovative technology. The passion to keep up a healthy lifestyle in U.S. and Canada is the main reason for the region’s dominance. Also, continuous advancement in technologies, high purchasing power and disposable income in this region is contributing to the development of North America wearable technology market. The North America market for wearable technology is expected to witness a lucrative CAGR growth of 18.3% in the forecast period.
Asia Pacific is the second largest market for wearable technology devices and is expected to grow with a CAGR of 22.6% in the forecast period of 2016-2025. The region is anticipated to dominate the market for wearable technology in the near future due to factors such as technological innovations and introduction of new products. The demand for wearable medical devices is propelling owing to growing incidences of chronic diseases, diabetes patients and easy to use medical devices. Also, growing awareness among people for health and fitness and increasing demand for smartphones and tablets which are capable of integrating wearable devices are driving the wearable technology market for wearable technology. Whereas, factors such as high prices of the products and non-covered insurance of such devices that results in reimbursement issues are hindering the market growth.
Key findings of the study:
The wearable technology market is broadly classified into product type, application and geography. The segmentation in this research study has been finalized post in-depth secondary research and extensive primary research. Also, we have studied the market segments offered by major players in this market, in order to understand widely used market-specific terminologies and jargons to represent any particular segment. Thus, we have incorporated outputs of this research and have come up with a final segmentation of the market.
Europe holds the third largest share after North America and Asia Pacific. Advances in material sciences have facilitated the country to achieve remarkable compactness in wearable devices, and easy-to-use features of these devices have given a boost to their adoption. However, the high prices of wearable products will continue to hinder the growth of the wearable technology market in Europe. The improvement of wearable for fitness and healthcare applications is a vital prospect that previously remained comparatively untouched. By concentrating on this prospect, companies in the European market can alleviate the negative impact of market limitations to a certain extent. Regardless of the continuous growth of the market, the battery technology is still needs to be developed. The wearable devices need to be charges frequently which might act as a restraint for the growth opportunities.
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