Wearable AI Market Size, Share & Trends Analysis Report By Type (Smartwatches, Smart Eyewear, Smart Earwear), By Application, By Operations, By Component, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global wearable AI market size was valued at USD 21.2 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 29.8% from 2023 to 2030. The market is witnessing significant growth due to the exponential rise of emerging technologies, such as artificial intelligence (AI), and 5G smartphone adoption. The increased adoption of smart wearables enabled with AI is due to the advancement of IoT, integration of wireless technology, and the increasing popularity of smartwatches among millennials and Gen Z.

The COVID-19 pandemic had a moderate impact on the market as the supply chain was disrupted during the pandemic and many manufacturers and retailers incurred losses due to the lockdown imposed by the government of different countries. However, the medical wearable AI device segment witnessed a positive impact due to the COVID-19 pandemic owing to the growing demand for telemedicine.

Due to the social distancing norm, medical professionals turned to telemedicine, which allowed them to treat patients virtually without taking the risk of the spreading of the virus. Moreover, researchers studied different data collected from AI wearables to track patients with COVID-19 symptoms. For example, the Oura ring from Oura Health Ltd. was utilized by scientists at the University of California, San Francisco in 2020 to test the physiological data collected by the ring to forecast the onset, progression, and recovery of new COVID-19 cases.

Many key players in the market are targeting gen Z and introducing AI-enabled wearable products, for instance, in June 2022, Noise launched its eyewear, the Noise i1. It offers voice assistance and wireless music streaming by connecting to smartwatches through Bluetooth and attending phone calls. Noise i1 also allows one to play or pause music, answer, or decline calls, and activate the voice assistant on a user's phone.

Various cutting-edge wearable sensory devices with minimally intrusive health monitoring platforms have been developed due to the advancements. As a result, consumers now have a way to better diagnose diseases at an early stage and pay less overall for more invasive routine diagnostic services. Additionally, a smart implantable is another wearable device that will use artificial intelligence for sensors to monitor blood pressure, heart rate, glucose level, etc. For instance, Proteus, a bioscience company, produced a digital pill, which allows consumers to understand body metrics, as after swallowing the pill, the consumers get their body metrics using an external device.

There are various technological advancements taking place in the market. Some of them include the adoption of 5G, biosensors, beacon technology, smart rings, smart implantable, etc. Moreover, many device manufacturers are focusing on incorporating wellness and personal health features in the wearables such as blood oxygen sensors, heart rate monitors, electrocardiogram monitors, and other sensors that alert potential health issues. For instance, Fitbit offers watches with built-in thermometers that alert people regarding potential fever, especially during the COVID-19 pandemic.

E-payments through wearables are another trend that is driving the market. For instance, Lyle & Scott, a British menswear designer, collaborated with Barclaycard to launch a contactless payment jacket with a chip-in cuff that allowed conducting contactless payment. For instance, in October 2015, Ringly, in collaboration with Mastercard, allowed customers to make contactless payments by wearing their rings. In May 2022, Sony introduced Wena 3, a smartwatch that can be used as a regular watch but it accepts mobile payments via Barclaycard in the U.K. bPay, a wearable technology company, backed by Barclaycard, offers jackets, fobs, and stickers that can be used to perform contactless payments.

Type Insights

The smartwatches segment accounted for the largest revenue share of over 30.2% in 2022. The demand for wireless fitness and sports devices is expected to grow with the growing consumer health consciousness. Additionally, it is predicted to rise at a lucrative rate over the forecast period due to the increasing importance of connected devices across various industries and the rising need for a connected ecosystem. In September 2021, Apple announced the release of the Apple Watch 7 and its newest generation of iPhones. The Apple Watch 7 is the company's eighth-generation smartwatch and the first new model to be introduced in a while. The smartwatch comes in two sizes and offers sports smaller bezels and polished corners.

Smart earwear is expected to exhibit the fastest CAGR over the forecast period. The growth is attributed to the increased upgradation of headphones by remote workers for video calling and increased purchase of AI-enabled headphones by millennials and gen Z. In March 2020, a German brand, Montblanc introduced its smart headphones as a part of its travel tech collection, expanding its smart wearable category offering. It offers Google Assistant and can connect to a variety of Bluetooth devices, and its ergonomic design contributes to increased comfort. Jabra, a Germany-based company specializing in video conference systems and audio equipment, launched its smart headphones. The new headphones have microphones with built-in wind noise reduction and improved speech functionality via a dedicated Google Now/Siri button.

Application Insights

The consumer electronics segment accounted for the largest revenue share of over 32.2% in 2022 owing to the increasing demand for smart wearables among consumers to track health vitals. Consumer wearable electronics refer to a range of smart wearables used for fitness and sports, entertainment, and multimedia. Wearable technology is often used to track daily activities and personal health goals. For instance, in February 2022, Noise launched a new smartwatch Noise Colorfit New on Amazon. The watch offers AI voice assistance, Bluetooth calling, a heart rate monitor, oxygen level, and other vital health monitoring features.

The healthcare segment is expected to register the fastest growth rate from 2023 to 2030. The segment is primarily driven by growing customer concerns over fitness and health. It is anticipated that the use of fitness trackers and smartwatches would increase as obesity and other heart problems have become more prevalent around the globe.

Operations Insights

The on-device AI segment dominated the market with a share of over 58.0% in 2022 and is expected to exhibit the fastest CAGR over the forecast period. The dominance is attributed to the growing requirement for fast computing, less dependency on cloud-based AI for critical operations, and growing demand for low latency devices.

The on-device AI segment offers responsive and powerful operations, which is fueling the segment growth. Northwestern University researchers have created a small handheld wireless sensor that resembles a sticker. It allows medical professionals to keep an eye on vital bodily signals without using any external wire.

Component Insights

The sensors segment dominated the market in 2022 with a revenue share of over 54.4% and is also expected to witness the fastest growth during the forecast period due to the rising number of health and fitness monitoring applications. Wearable sensors are driven by their ability to track the performance and activity of the user.

For instance, Robert Bosh GmbH accounts for one of the major shares in the global market. It provides a complete portfolio of micro-electro-mechanical systems (MEMS)-based sensors and solutions. Its portfolio of motion sensors includes gesture and motion-based products such as inertial measurement units, gyroscopes, and accelerometers. Its smart sensors provide users with low-power and flexible solutions for data processing and motion sensing. These are designed explicitly for always-on sensor applications in wearables, smartphones, and tracking devices.

Regional Insights

Based on regions, North America held the largest market share of 27.2% in terms of revenue in 2022 owing to heavy investment by private players and supportive government initiatives for the adoption of AI technology. In June 2020, Fitbit announced Fitbit Flow, a wearable AI device in response to the lack of ventilators in hospitals and medical facilities around the world that are required to treat critically ill patients. The equipment was intended to serve as an alternative to more expensive traditional ventilators when those are not an option. Similarly, in August 2020, Amazon announced the launch of its flagship fitness tracker the Halo in the U.S., Halo is a smart wearable fitness tracker that tracks mood through voice and scans the wearer's body to measure body fat and provides analysis for the same.

Asia Pacific is expected to register the fastest growth rate over the forecast period owing to collaborations, high investment by private players, and government initiatives for the use of AI wearables for contactless payments. For instance, in 2021, Monarch Technologies partnered with Canna Group LLC to launch Helox, a cashless contactless payment platform for the cannabis industry. It offers a hassle-free way of accepting payments.

Key Companies & Market Share Insights

Key players in the global market are more focused on product innovation and strategic partnerships with technology providers. For instance, in May 2022, IBM announced that it signed a strategic collaboration agreement with Amazon Web Services. This agreement would enable IBM to make a variety of its software products available as services on the AWS marketplace. The joint venture includes both companies making investments that will facilitate businesses' use of IBM's services and its integration with AWS.

In September 2021, Apple announced the release of the Apple Watch 7 and its newest generation of iPhones. The Apple Watch 7 is the company's eighth-generation smartwatch and the first new model to be introduced in a while. The smartwatch is available in two sizes and offers sports smaller bezels and polished corners. In March 2020, a German brand, Montblanc introduced its smart headphones as a part of its travel tech collection, expanding its smart wearable category offering. It offers Google Assistant and can connect to a variety of Bluetooth devices, and its ergonomic design contributes to increased comfort. Some prominent players in the global wearable AI market include:

• Amazon.com, Inc.

• Fitbit, Inc.

• Garmin Ltd.

• Google, Inc.

• Huawei Technologies Co. Ltd.

• IBM

• Motorola Solutions, Inc.

• TomTom International B.V.

• Apple, Inc.

• Samsung Electronics Co. Ltd.

• Sony Corporation

Wearable AI Market Report Scope

Global Wearable AI Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global wearable AI market report based on type, application, operations, component, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Smartwatches

  • Smart Eyewear

  • Smart Earwear

  • Others

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Consumer Electronics

  • Healthcare

  • Automotive

  • Military & Defense

  • Media & Entertainment

  • Others

• Operations Outlook (Revenue, USD Million, 2017 - 2030)

  • On-device AI

  • Cloud-based AI

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Processor

  • Connectivity IC

  • Sensors

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Singapore

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE