Wearable AI Market Size & Share Analysis Report 2030

Updated on : Oct 25, 2024

The growth of the wearable AI market is driven by seamless integration with smartphones and Internet of Things (IoT), growing awareness regarding health and fitness among general population and technological advancements in wearables.

Wearable AI Market Size

The global wearable AI market size was valued at USD 62.7 billion in 2024 and is estimated to reach USD 138.5 billion by 2029, growing at a CAGR of 17.2% during the forecast period from 2024 to 2029.

Wearable AI Market Forecast to 2029

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Wearable AI Market Trends

Drivers: Growing awareness regarding health and fitness among general population and technological advancements in wearables

The surging interest in monitoring and managing personal health and well-being is a major driver for the wearable AI industry. Growing emphasis on fitness, spurred by the rising incidence of chronic diseases and the aging population, has compelled people to seek tools to monitor and improve their health.

Wearable AI devices, such as smartwatches and fitness trackers, are convenient solutions for tracking steps, heart rate, sleep quality, etc. This data empowers individuals to make informed choices about their activities, sleep patterns, and overall health. Wearable AI devices also incorporate gamification elements and social features such as rewards and challenges to engage users and motivate them to stay active and healthy.

Technological advancements and improved user experience are driving the adoption of wearable AI devices. For instance, Ava, a medical technology company, developed an FDA-approved Ava bracelet that helps women track their menstrual cycles, fertility, pregnancy, and overall health.

Similarly, in August 2023, SAMSUNG developed Galaxy Watch 6, which incorporates an advanced sensor for body composition measurement and a heart rate monitor for continuous tracking. This smartwatch includes connectivity features such as Bluetooth 5.3, Wi-Fi a/b/g/n 2.4+5 GHz, near-field communication (NFC), 4G/LTE with eSIM, and AI features such as natural language command and dictation.

The integration of advanced sensors, AI algorithms, and intuitive interfaces has enhanced the accuracy, reliability, and functionality of these wearable AI devices, making them more appealing and user-friendly. These devices seamlessly monitor daily routines, offering personalized insights, motivation, and accountability to help individuals achieve their health and fitness goals effectively.

Restraint: Limited battery life

Limited battery life is a major restraint in the growth of the wearable AI market, affecting device functionality and user experience. Despite technological advancements, many wearable devices do not offer extended battery life while maintaining optimal performance. Short battery life can disrupt users’ daily routines, requiring frequent recharging and limiting the device’s usability, especially during extended outdoor activities or travel.

Moreover, the compact size and lightweight design of wearable AI devices often constrain battery capacity, exacerbating the issue of limited battery life. For instance, in February 2024, Apple Inc. (US) commercialized its Vision Pro headset.

The device offers just two hours of battery life. Similarly, Microsoft (US) offers HoloLens 2, an AR headset, which provides immersive experiences blending digital content with the real world. However, its low battery life restricts the duration of use, impacting the overall usability and practicality of the device.

The Meta Quest Pro by Meta (US) lasts roughly two hours. As users demand more features and functionality from their wearable devices, including continuous health monitoring, GPS tracking, and notifications, the power consumption of these devices increases, further draining the battery.

Opportunities: Customization and personalization features

Customization and personalization in wearable AI devices are allowing manufacturers to cater to diverse consumer preferences and needs. With customizable features such as personalized fitness plans, adaptive interfaces, and adjustable settings, wearable AI devices can enhance user engagement and experience.

For instance, Fitbit’s mobile app allows users to set personalized goals, track progress, and get tailored insights based on their activity levels, sleep patterns, and health goals. Similarly, the Apple Watch and health app offer personalized health and fitness features. Users can set activity goals, track workouts, monitor heart rate, and receive personalized coaching based on their activity history and fitness level. This customization meets individual user’s needs and fosters a deeper sense of ownership and investment in the device.

Moreover, the integration of AI and machine learning algorithms enables wearable AI devices to adapt and evolve based on user behavior, preferences, and feedback. Wearable AI devices can leverage user data to deliver personalized recommendations for workouts, nutrition, sleep optimization, and stress management, enhancing the overall user experience and driving long-term engagement. By continuously learning and adapting to users’ evolving needs and preferences, wearable AI devices can establish themselves as indispensable tools for personalized health and wellness management in user’s daily lives.

Challenge: Market saturation and intense competition

With the proliferation of wearable devices in recent years, the number of market players has surged, making it challenging for newcomers to establish a foothold. The saturation amplifies the importance of differentiation and innovation for emerging companies attempting to stand out amidst a large pool of market players. For new entrants, capturing consumer attention demands cutting-edge technology and a keen understanding of evolving user needs and preferences.

Simultaneously, existing players face the relentless pressure of maintaining market share amid fierce competition. As more companies contend for the attention and loyalty of consumers, established brands must continually innovate, upgrade their product offerings, and enhance user experiences to retain their position in the market.

The intensified competition drives a race for technological advancements, design innovations, and strategic partnerships to stay ahead of the curve. The challenge lies in creating compelling products, devising effective marketing strategies, and forging strong brand identities to withstand the competitive landscape. In this saturated market, adapting quickly, anticipating market trends, and delivering meaningful value to consumers are paramount for sustained success in the wearable AI industry.

Wearable AI Ecosystem

Smartwatch segment to hold larger market share during the forecast period.

The smartwatch segment is expected to hold high market share during the forecast period. The high market share is credited to the several key factors offered by the smartwatch such as versatility and functionality, health and fitness tracking, and integration with smartphone ecosystems.

These factors have accelerated its adoption across consumer electronics, healthcare, and enterprise & industrial applications. Several industry participants across smart watch wearable AI ecosystem are extensively focusing on organic growth strategies such as product innovation and collaborations to gain competitive benefits in the market.

For instance, in September 2023 Apple Inc. (US) introduced the Apple Watch Series 9, featuring the advanced S9 SiP (System in Package) for enhanced performance, a new double tap gesture, brighter display, faster on-device Siri with health data access, precision finding, and watchOS 10 with redesigned apps and mental health support. Such new product development and launches will foster the smartwatch segment growth over the forecast period.

On-device AI segment account for the largest share of the wearable AI market for during the forecast period

On-device AI segment to hold high market share during the forecast period. The high market share is driven by a burgeoning demand for instantaneous, privacy-centric processing. Consumers increasingly seek wearables that can independently analyze data locally, minimizing reliance on external servers and mitigating privacy concerns.

This paradigm shift towards on-device AI is fueled by a desire for real-time insights, reduced latency, and enhanced user experiences. In July 2022, OPPO (China) launched Enco X2 wireless earbuds which are integrated with its proprietary AI Bone Voiceprint technology.

These new earbuds incorporate triple-microphone system commonly found in high-end TWS headsets. These earbuds are equipped with all-new bone conduction sensors for voice pickup. The built-in sensors can accurately capture the sound vibrations and better pick up speaker’s voice in noisy surroundings. Such product launches with on-device AI features amplifies the segment growth over the forecast period.

Consumer electronics segment account for the largest share of the wearable AI market for during the forecast period

The consumer electronics segment within the wearable AI market is expected to hold a high market share during the forecast period. The wearable AI devices in consumer electronics are experiencing a surge in popularity due to their diverse and innovative applications.

From smartwatches that seamlessly integrate with smartphones to provide real-time notifications and fitness tracking, to augmented reality (AR) glasses enhancing user experiences, these devices are transforming the way users interact with technology. AI-driven wearables also find utility in personalized virtual assistants, voice recognition, and contextual awareness, elevating user engagement and satisfaction. As the demand for interconnected, intelligent devices continue to grow, wearable AI in consumer electronics is poised to revolutionize daily life with enhanced functionality and seamless integration.

Wearable AI market in Asia Pacific estimated to grow at the fastest rate during the forecast period

Asia Pacific region in the wearable AI market is expected to grow at the fastest rate during the forecast period. The market growth is primarily fuelled by the region's burgeoning middle-class population and their increasing focus on health and fitness.

Rapid urbanization, particularly in countries like China and India, spurs the demand for smart wearables as integral elements of modern urban lifestyles. The cultural inclination towards technological adoption, coupled with a thriving startup ecosystem, fosters innovative solutions tailored to the diverse needs of the Asia-Pacific market. Additionally, governmental initiatives promoting digital health and smart city development further accelerate the widespread adoption of wearable AI technologies.

Wearable AI Market by Region

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Top Wearable AI Companies - Key Market Players

Major vendors in the wearable AI companies include

• Apple Inc. (US),
• SAMSUNG (South Korea),
• Alphabet Inc. (US),
• Microsoft (US),
• Meta (US),
• Lenovo (US),
• Garmin Ltd. (US),
• Amazon.com, Inc. (US),
• Xiaomi (China), and
• OPPO (China). Apart from this, Sony Corporation (Japan), Huawei Device Co., Ltd. (China), Vuzix (US), Epson America, Inc. (US), Motorola Mobility LLC. (US), Imagine Marketing Limited (India), Magic Leap, Inc. (US), Humane Inc. (US), Motiv Inc. (US), Bragi (Germany), WHOOP (US), clim8 (UK), ProGlove (Germany), Biobeat (Israel), and Moov (US) are among a few emerging companies in the wearable AI market.

Wearable AI Market Report Scope

Wearable AI Market Highlights

This research report categorizes the wearable AI market based on Produc

Recent Developments in Wearable AI Industry

• In January 2024, Xiaomi (China) introduces the global launch of Redmi Buds 5 and Redmi Buds 5 Pro, both equipped with active noise cancellation. The Redmi Buds 5 boasts a 12.4mm driver unit and dual microphones with AI noise cancellation technology.
• In October 2023, Alphabet Inc. (US) launched the Google Pixel Watch 2. With improved performance, all-day battery life, dedicated Google Assistant, and top-notch health features, it offers a comfortable and eco-friendly design for seamless day-to-night wear.
• In October 2023 Meta (US) launched Meta Quest 3. It features higher resolution, stronger performance, breakthrough Meta Reality technology, and a slimmer, more comfortable form factor.

Key Questions Addressed in the Report:

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