Wearable AI Market by Product (Smartwatches, Fitness Tracker, AR/VR Headsets, Wearable Cameras, Smart Earwear, Smart Clothing & Footwear), Operation (On-device AI, Cloud-based AI), Application (Consumer Electronics, Healthcare) - Global Forecast to 2029
[248 Pages Report] The wearable AI (artificial intelligence) market was valued at USD 62.7 billion in 2024 and is estimated to reach USD 138.5 billion by 2029, registering a CAGR of 17.2% during the forecast period.
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 Forecast to 2029
To know about the assumptions considered for the study, Request for Free Sample Report
Market Dynamics:
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 market. 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
To know about the assumptions considered for the study, download the pdf brochure
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.
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
Request Sample Scope of the Report
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
|
Report Metric |
Details |
|
Market size available for years |
2020—2029 |
|
Base year |
2023 |
|
Forecast period |
2024—2029 |
|
Segments covered |
Product, Operation, Application, and Region |
|
Geographic regions covered |
North America, Europe, Asia Pacific, and RoW |
|
Companies covered |
The major players include |
Wearable AI Market Highlights
This research report categorizes the wearable AI market based on Produc
|
Segment |
Subsegment |
|
By Product: |
|
|
By Operation: |
|
|
By Application: |
|
|
By Region: |
|
Recent Developments
- 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:
What is the total CAGR expected to be recorded for the wearable AI market during 2024-2029?
The global wearable AI market is expected to record the CAGR of 17.2% from 2024-2029.
Which regions are expected to pose significant demand for wearable AI market from 2024-2029?
Asia Pacific and North America is expected to pose significant demand from 2024 to 2029. Major economies such as US, Canada, China, Japan, and South Korea are expected to have a high potential for the future growth of the market.
What are the major market opportunities in the wearable AI market?
Customization and personalization features, increasing applications of wearable AI devices in healthcare sector, and integration of wearable AI devices with Augmented Reality (AR) and Virtual Reality (VR) technologies are projected to create lucrative opportunities for the players operating in the wearable AI market during the forecast period.
Which are the significant players operating in wearable AI market?
Key players operating in the wearable AI market are Apple Inc. (US), SAMSUNG (South Korea), Alphabet Inc. (US), Microsoft (US), and Meta (US).
What are the major applications of the wearable AI market?
Consumer electronics, healthcare, and enterprise & industrial, are the major applications of the wearable AI market.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
The study involved four major activities in estimating the size for wearable AI market. Exhaustive secondary research was done to collect information on the market, peer market, and parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across value chains through primary research. The bottom-up approach was employed to estimate the overall market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, sources such as annual reports, press releases, investor presentations of companies, white papers, and articles by recognized authors were referred to. Secondary research was done to obtain key information about the market’s supply chain, the market's value chain, the pool of key market players, and market segmentation according to industry trends, region, and developments from both market and technology perspectives.
Primary Research
Extensive primary research has been conducted after understanding and analyzing the wearable AI market scenario through secondary research. Several primary interviews have been conducted with key opinion leaders from demand- and supply-side vendors across four major regions—North America, Europe, Asia Pacific, and RoW. Approximately 25% of primary interviews have been conducted with the demand side and 75% with the supply side. These primary data have been collected through telephonic interviews, questionnaires, and emails.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the complete market engineering process, both top-down and bottom-up approaches, along with several data triangulation methods, have been used to perform the market size estimation and forecasting for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analyses have been performed on the complete market engineering process to list the key information/insights throughout the report. The following table explains the process flow of the market size estimation.
The key players in the market have been identified through secondary research, and their market shares in the respective regions have been determined through primary and secondary research. This entire procedure includes the study of annual and financial reports of the top players as well as extensive interviews with industry experts (such as CEOs, VPs, directors, and marketing executives) for key insights (both quantitative and qualitative) on the wearable AI market. All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources. All the possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data has been consolidated and supplemented with detailed inputs and analysis from MarketsandMarkets and presented in this report.
Wearable AI Market: Bottom-Up Approach
The bottom-up approach has been employed to arrive at the overall market size of the wearable AI market, in terms of products. The summation of all the products in all the regions is calculated to arrive at the overall market size.
Wearable AI Market: Top-Down Approach
In the top-down approach, the overall market size has been used to estimate the size of individual markets (mentioned in the market segmentation) through the percentage splits from secondary and primary research.
For the calculation of specific market segments, the most appropriate parent market size has been considered to implement the top-down approach. The bottom-up approach has also been implemented for the data extracted from the secondary research to validate the obtained market size of segments.
The market share of each company has been estimated to verify the revenue shares used earlier in the bottom-up approach. With the data triangulation procedure and the validation of data through primaries, the overall parent market size and each individual market size has been determined and confirmed in this study. The data triangulation procedure used for this study is explained in the next section.
Data Triangulation
After arriving at the overall market size through the process explained above, the overall market has been split into several segments. To complete the overall market engineering process and arrive at the exact statistics for all the segments, market breakdown and data triangulation procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. The market has also been validated using both top-down and bottom-up approaches.
Definition
Wearable AI refers to artificial intelligence integrated into wearable devices, which are typically worn on the body, such as smartwatches, fitness trackers, wearable camera, smart earwear, augmented reality/virtual reality (AR/VR) headsets, and other similar accessories. These devices are designed to collect data from the user's movements, activities, and surroundings, and then utilize AI algorithms to analyze and interpret that data in real-time.
The primary goal of wearable AI is to enhance the functionality of the wearable device by providing personalized and context-aware information, insights, and services to the user. This can include features like health and fitness tracking, notifications, voice recognition, gesture control, and more. Wearable AI leverages machine learning and other AI technologies to understand user behavior, preferences, and patterns, adapting to the individual's needs and delivering a more tailored and intuitive user experience.
Key Stakeholders
- Wearable technology companies
- Artificial Intelligence companies
- Companies involved in the ecosystem of wearable technology and AI market
- Key service providers
- Software solution providers
- Network providers
- Retail distributor
- Government, financial, and research institutions as well as investment communities
- Analysts and strategic business planners
- Research and consulting firms
Report Objectives
- To define, describe, and forecast the wearable AI market, in terms of value, by product, operation, application, and region.
- To describe and forecast the wearable AI market, in terms of volume, by product.
- To forecast the size of the market segments for four major regions—North America, Europe, Asia Pacific, and the Rest of the World (RoW).
- To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To offer an ecosystem analysis, case study analysis, patent analysis, technology analysis, pricing analysis, Porter’s Five Forces analysis, and regulations pertaining to the market.
- To give a detailed overview of the value chain of the wearable AI market ecosystem
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market
- To strategically profile the key players and comprehensively analyze their market shares and core competencies
- To analyze the opportunities in the market for stakeholders and describe the competitive landscape of the market
- To study competitive developments such as collaborations, partnerships, product developments, and acquisitions in the market
- To understand the impact of the recession on the wearable AI market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to 7)
Growth opportunities and latent adjacency in Wearable AI Market