The global smartwatch market will reach $31 billion by 2025 at a compound annual growth rate (CAGR) of 16.2%, according to new data from Allied Market Research (www.alliedmarketresearch.com).
The rise in demand for wearable devices and trackers to monitor heart rate and other vital signs, increase in awareness regarding health and well-being, and diversified product offerings by reputed manufacturers drive the growth of the smartwatch market, notes the research group.
However, premium pricing of smartwatches, slow internet connectivity in developing countries, and limited battery life hamper the market growth. On the other hand, use of smartwatch in e-learning and heavy inflow of investment to build a connected ecosystem are expected to create lucrative opportunities to the market players in future, notes Allied Market Research.
The standalone smartwatch segment held the largest share in 2017, accounting for more than half of the total market revenue. Moreover, this segment is expected to witness the fastest CAGR of 18.6% during the forecast period, owing attractive features such independent operability as a mobile phone and better battery backup. The other segments analyzed in the report include extension and classical smartwatches.
The healthcare segment is expected to register the fastest CAGR of 17.9% through 2025, owing to rise in health awareness for continuous tracking of heart rate, sleep, blood pressure, and nervous system; need for getting reminders about taking medicines & taking fitness goals; and increased use in tracking female health.
However, Allied Market Research says the personal assistance segment held the largest share in 2017, contributing nearly one-third of the total revenue, as personal assistance systems facilitate time monitoring, caller notification, email alerts alongside offering basic features of a smartwatch.
Apple’s watchOS segment garnered the largest share in 2017, contributing more than two-fifths of the total revenue, owing to its ability to offer features such as thinner and slimmer than other counterparts, ergonomic design, and provision of electrocardiogram and pedometer sensors. However, according to Allied Market Research, the RTOS operating system is expected to manifest the fastest CAGR of 22.5% during the forecast period.