Global Smartwatch Market Report and Forecast 2024-2032

Global Smartwatch Market Outlook

The global smartwatch market size reached approximately USD 43.58 billion in 2023. The market is projected to grow at a CAGR of 15.6% between 2024 and 2032, reaching a value of around USD 160.67 billion by 2032.

Key Takeaways

• Health and fitness tracking is a major selling point for smartwatches, with advanced features like heart rate monitoring.

• Continuous advancements in technology, including improvements in battery life and display quality are enhancing the functionality of smartwatches.

• The Asia Pacific market is expected to grow robustly due to the rising demand for wearable technology.

A smartwatch is a wearable computing device that is worn on the wrist. It can be connected to smartphones that can notify users about e-mails, incoming calls, and app notifications. Smartwatches empower users to track their fitness goals, enhance their digital experiences, and offer efficient and convenient ways to stay connected.

Smartwatches are widely used to track steps, pulse rate, heart rate, calories, sleep, and other health metrics with improved accuracy. One of the trends fuelling the smartwatch market growth is the rising health awareness. Moreover, there is an increasing development of smartwatches that can not only detect physical changes but also identify stress and anxiety levels to assess the mental, emotional, and physical states of users and provide personalised suggestions accordingly.

The rising trend of personalisation and customisation is also boosting the smartwatch market development. Smartwatches that enable users to personalise their watch face, offer customisable widgets to provide quick access and at-glance updates, and feature innovative applications to expand their functionality are gaining popularity. Key players are also launching innovative smartwatches with interchangeable accessories, customisable watch faces, and personalisation features to capitalise on this trend.

Key Trends and Developments

Integration with healthcare systems; wearable payment solutions; enhanced connectivity; and technological advancements in the market are the major trends impacting the smartwatch market expansion

March, 2024

Airtel Payments Bank partnered with Mastercard and the Indian device brand Noise to introduce a smartwatch aimed at enhancing contactless transactions.

March, 2024

Itel announced the launch of the Icon 2, a Bluetooth-calling smartwatch equipped with a single-chip Bluetooth feature for fast and smooth connectivity.

March, 2024

Noise, India's top brand for smartwatches and connected lifestyle products, launched its newest smartwatch, the Noise ColorFit Icon 3 Plus, which features a 2-inch HD display.

March, 2024

Polar announced the launch of the Grit X2 Pro, a rugged smartwatch designed for comprehensive activity tracking and navigation, built to meet military 810H standards.

Integration with healthcare systems

This integration allows for remote patient monitoring and can provide valuable insights for personalised healthcare.

Wearable payment solutions

Smartwatches are increasingly being used for contactless payments by integration with payment systems like Apple Pay, Google Pay, and Samsung Pay.

Enhanced connectivity

The latest smartwatches offer improved connectivity options, including LTE/4G support, which allows them to function independently of a smartphone.

Technological advancements in the market

Advancements in semiconductor, artificial intelligence (AI), and sensor technologies are expected to aid the market growth in the coming years.

Smartwatch Market Trends

Advancements in semiconductor, artificial intelligence (AI), and sensor technologies are poised to significantly impact the smartwatch market development. For instance, advances in semiconductor technology have enabled the miniaturisation of electronic components. This allows for more features to be packed into the compact form factor of a smartwatch, without compromising on performance or battery life. These are anticipated to drive the development of affordable smartwatches that can track blood composition changes, detect atrial fibrillation and stroke, track ECG, and alert emergency services in case of severe health complications.

Market players in smartwatches market are readily incorporating smart features into their range of smartwatches.  For instance, Noise, a leading Indian brand in the smartwatch launched its latest smartwatch, the Noise ColorFit Icon 3 Plus, in March 2024. The highlight of the watch is its 2-inch HD display. This feature is significant as it enhances the user experience by providing a larger and clearer screen, which is desirable for better visibility of notifications, fitness data, and other smartwatch functions.

Market Segmentation

“Smartwatch Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Display Type

• AMOLED

• PMOLED

• TFT LCD

Market Breakup by Operating System

• Watch OS

• Wear OS

• Others

Market Breakup by Application

• Personal Assistance

• Medical

• Sports

• Others

Market Breakup by Distribution Channel

• Online

• Offline

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

AMOLED segment accounts for a major smartwatch market share as it offers high-quality resolution and brightness

The demand for AMOLED smartwatches is considerably increasing. AMOLED, also known as Active Matrix Organic Light Emitting Diode, boasts excellent brightness levels, superior contrasts, richer colours, and superior resolution, hence it offers better viewing angles than its LCD counterparts. Moreover, fast refresh rates, excellent visibility in sunlight, compatibility with different screen sizes, and flexibility enhance the appeal of AMOLED for use in smartwatches. AMOLED screens are also more energy-efficient when displaying dark colors because they can turn off individual pixels, reducing power consumption which is particularly advantageous for smartwatches, as it can lead to longer battery life, a critical factor for wearable devices.

TFT LCD are anticipated to grow significantly in the forecast period. TFT LCD displays are commonly used in budget and entry-level smartwatches. While they are less expensive than AMOLED displays, they offer lower contrast ratios and consume more power, leading to shorter battery life. However, their lower cost makes them a popular choice for manufacturers aiming to offer affordable smartwatches.

Personal assistance segment maintains its dominance in the market as these smartwatches offers standard smart features that can be of great assistance to the users

Personal assistance smartwatches hold the majority share of the smartwatch market. This segment includes smartwatches that offer features like notifications, calendar reminders, messaging, voice assistants, and other productivity tools. Personal assistance is a core function of most smartwatches, as they are designed to be an extension of the user's smartphone, providing convenience and quick access to information. This segment holds the highest share in the market because these features are standard in almost all smartwatches, regardless of their primary focus or target audience.

Sports smartwatches are anticipated to gain sizeable growth in the smartwatch market in the coming years. This segment includes smartwatches that are specifically designed for fitness and sports enthusiasts. These watches typically come with features like GPS tracking, heart rate monitoring, workout tracking, and other fitness-related functions. As health and fitness have become major trends, the demand for sports-oriented smartwatches has grown significantly. These watches appeal to a wide range of users who are looking for devices that can help them monitor and improve their physical activity and performance.

Competitive Landscape

Many smartwatch market players are forming partnerships with health and fitness companies, fashion brands, and tech firms to expand their product offerings, enhance functionality, and reach new customer segments

Nexxbase Marketing Pvt. Ltd. (Noise), founded in 2014, is a leading wireless headphones and smart wearable company and is one of the first Indian brands to sell wireless earbuds.

Garmin Ltd., headquartered in Kansas City, the United States, is a leading consumer electronics company which has expanded the reach of its wearable and GPS navigation technology to different sectors.

Zepp Health Corporation, Ltd. (Amazfit) is a leading health technology and smart wearable company that was established in 2013. The company develops accessible solutions and aims to create a healthy ecosystem.

Apple Inc. was founded in 1976, and is best known for its range of consumer electronics including iPhone, iPad, Mac, and Apple Watch, among others.

Other smartwatch market players include Fitbit Inc., Samsung Electronics Co. Ltd., Huawei Device Co., Ltd., Fossil Group, Inc., Xiaomi Corporation, LG Electronics Inc., and Polar Electro Oy, among others.

Smartwatch Market Analysis by Region

The Asia Pacific represents a significant market share, driven by the increasing awareness regarding health and fitness. India, particularly, is emerging as a major market for smartwatches due to increasing interest in tracking health metrics and the rising demand for wearable technology. The growing affordability of the devices, coupled with the increasing proliferation of indigenous brands like Noise and BoAT, make India a lucrative market for smartwatches. Economic growth in many Asia Pacific countries has led to increased disposable income, allowing more consumers to invest in premium wearable devices like smartwatches.

The smartwatch market in North America is anticipated to witness sizeable growth in the forecast period. North American consumers are quick to adopt new technologies, and smartwatches have become increasingly popular as they offer seamless integration with smartphones and other smart devices. Features like notifications, voice commands, and mobile payments have made smartwatches a convenient accessory for many. Smartwatches are seen as both a technology gadget and a fashion accessory as brands offer a variety of styles, materials, and watch faces, allowing users to personalise their devices to match their style.

Key Highlights of the Report