Market Trends of Smartwatch Industry
Medical Segment to Hold Considerable Market Shares
- Medical applications are a significant driver of demand for smartwatches. Smartwatches with health monitoring features such as heart rate tracking, blood oxygen levels, ECG (electrocardiogram) capabilities, and blood pressure monitoring provide users with valuable health insights. These features appeal to individuals looking to keep track of their health metrics in real-time.
- People with chronic conditions like diabetes, hypertension, and heart disease benefit from smartwatches that help monitor their health parameters and provide timely alerts. This continuous monitoring aids in better disease management and adherence to treatment plans. According to the International Diabetes Federation, by 2045, the Western Pacific region is forecast to have the highest number of diabetic people globally, with some 260 million people aged between 20 and 79 years.
- In addition, according to the American Hospital Association, the number of people with chronic medical conditions in the United States has been increasing gradually for several decades. By 2050, around 171 million individuals in the United States are expected to suffer from chronic conditions.
- Many smartwatches come with emergency features such as fall detection and SOS alerts, which can automatically contact emergency services or designated contacts if the wearer is distressed. This is particularly useful for older people or those with medical conditions that put them at risk of sudden health issues. Also, it has the ability to collect and analyze personal health data over time, allowing users to track their progress and make informed decisions about their health and lifestyle. This data can also be shared with healthcare providers for more personalized and effective care.
- Furthermore, in August 2023, Japan-based watchmaker Citizen launched its second-gen CZ Smart watch lineup in May 2023. The company reportedly suspended sales of these WearOS-based smartwatches temporarily due to a “technical issue.” These smartwatches came with a feature based on tech from IBM’s Watson and NASA to track a person’s alertness. The affected models include the MX1000-01X, MX1011-05X, MX1018-06X, MX1000-28X, MX1016-28X, MX1017-50X, MX1000-52X, MX1002-57X, MX1010-59X, MX1003-71X and the MX1005-83X. The report said this issue doesn’t affect the CZ Smart Hybrid model.
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Asia-Pacific Expected to Have Significant Growth
- Asia-Pacific is expected to witness significant growth in the smartwatch market, owing to the growing consumer electronics industry and the rapid rise of smartwatch market vendors across the region's emerging economies. The increasing tech-savvy population, a rising pool of chronic diseases like obesity and diabetes, and the growing popularity of health and fitness to maintain a healthy lifestyle drive the market’s growth.
- According to a survey conducted in July 2023 by Transform Rural India, the average monthly medical expenses in India for chronically ill patients not availing of free medicine was about INR 6 thousand. Meanwhile, patients with chronic illness incurred an average monthly expense of nearly INR 5 thousand. An increase in healthcare spending may further create demand for a smartwatch.
- Smartwatches and smart wristbands are becoming popular, with nearly 70% of Chinese smartwatch owners owning a wristband. Local smartwatch brands responded promptly to this trend and snapped up most of the market share. There is an opportunity for Western brands to copy from China and establish leading positions in their home markets.
- In addition, the growing urbanization rates have increased demand for modern, visually appealing products that can better satisfy consumers' needs, such as several functionalities in one device and time schedules. Furthermore, the enormous millennial population globally has swiftly adopted smartwatches because of their increasing ability to track and maintain regular work hours and luxury standards. For instance, in September 2023, Apple launched the Apple Watch Series 9, which can run up to 18 hours of everyday use. It can be used up to 36 hours in low power mode and fast charging. With enhanced health monitoring capabilities, users can seamlessly integrate well-being into their daily routines, while advanced productivity tools and efficient communication features ensure streamlined workdays. The smartwatch's customizable workout seamless integration with work apps and improved battery life contribute to a holistic user experience, positively impacting how individuals manage their time and productivity in the professional realm.
- Given India's enormous population, with over 60-65% residing in rural regions, digitization is essential. Connecting the country allows more residents to access the benefits and possibilities of a modern economy, bridging the economic divide. For example, the Government on Rural Development - Economic Survey Highlights Thrust on Rural Development Report January 2023 noted that 65% of the country's population lives in rural areas.
- Moreover, the adoption of developed technologies such as artificial intelligence, machine learning, blockchain, and cloud computing, among others, will enhance the efficiency of Indian businesses, allowing them to compete globally, explore new markets, create new business models, and position themselves for strong growth over the next few decades. This is expected to fuel the market's expansion even more. For instance, in February 2024, the NoiseFit Grace came with a 1.1-inch AMOLED always-on-display with a resolution of 360x360 pixels and a peak brightness of 600 nits. It has an artificial intelligence (AI) voice assistant, Bluetooth calling, and an in-built calendar.
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