Global Wearable AI Market Expected to Reach $69.51 Billion by 2026

A new report published by Allied Market Research, titled, "Wearable AI Market by Type, and Application: Global Opportunity Analysis and Industry Forecast, 2019–2026," projects that the global wearable AI market size was valued at $10.63 billion in 2019, and is projected to reach $69.51 billion by 2026, registering at CAGR of 26.50%. In 2019, North America dominated the market, contributing more than 35% share of the overall revenue, followed by Europe. Emerging advancements of wearable devices, penetration of residential, commercial, and industrial automation, and rise in use of compact wireless electronics in the consumer electronics industry fuels the global wearable AI market growth.    

Wearable AI are devices that mostly use wireless connectivity and AI software that assist the users for various applications such as health monitoring, operations on voice command, and others. There are various types of wearable AI devices, namely, smart watch, smart glasses, smart earwear, smart glove, and others. Factors such as growth in adoption of AI assistants, increased penetration of AI in the healthcare industry, and advancement of IoT and integration of wireless technology in wearable electronic devices drives the market growth. Whereas, short life of smart wearables hampers the market growth. Further, AI assistance for animal and advancement in personal computing is expected to create lucrative opportunities during the wearable AI market forecast period.

Smart watch is an intelligent computer in the form of wrist watch that keeps the user connected to the other smart devices. The innovations of smart watch by the key players drive the smart watch market. For instance, Xiaomi officially launched the Mi Smart Watch in Beijing, China. Watch comes with various smart as well as fitness features. The connectivity features such as GPS, Wi-Fi, NFC, accept or reject calls, read or send messages and emails, play or pause music, among other things. 

Consumer electronic refers to home electronics devices. These devices are developed with a intent for everyday use. The rise in investment in R&D on wearable AI is lucrative to create future opportunities. For instance, hearables, or wireless in-ear computational earpieces, are an example of intelligent amplification devices that have been adopted recently and rapidly.

Among various regions, Asia-Pacific is expected to be the major revenue generator in 2019 and maintain its dominance in the future. This is attributed to rapid transformation from automated devices to autonomous devices due to the integration and advancement of IoT and AI technologies.

Asia-Pacific is projected to grow at the fastest rate for the wearable AI market throughout the analysis period, China in this region witnessed the highest demand for wearable AI, due to wide presence of semiconductor companies in the country. Moreover, enhancement in electronic device autonomy and increase in expenditure in the emerging markets such as Latin America, the Middle East, and Africa to meet the demand for exponentially growing economies in these countries, which have strengthened the market growth. Furthermore, technological advancements for cost-effective and high accuracy applications such as health monitoring, animal health assistance, and others, offer lucrative opportunity for the expansion of the market.

The market is segmented into type, application, and region. By type, it is categorized as smart watch, smart glasses, smart earwear, smart glove, and others. By application, it is divided into consumer electronics, healthcare, automotive, military and defense, media and entertainment, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In 2018, the smart watch segment dominated the market in terms of revenue, owing to its development for advanced features and cost-effectiveness.

Key Findings of the Study:

• The smart watch segment accounted for the highest wearable AI market share in 2018 with $2.82 billion, growing at a CAGR of 22.9% from 2019 to 2026.
• The consumer electronics in wearable AI industry generated the highest revenue, accounting for $3.32 billion in 2018.
• North America is expected to dominate the market, garnering 22.80% of the share during the wearable AI market 
• forecast period.

The key players in the wearable AI market that are analyzed in the report are Amazon.com, Inc., Fitbit, Inc., Garmin Ltd., Google Inc., Huawei Technologies Co. Ltd., International Business Management Corporation (IBM), Motorola Mobility LLC, TomTom International B.V., Samsung Electronics Co. Ltd., and Sony Corporation.