Wearable Payment Devices Market

Wearable Payment Devices Market Research, 2031

The global wearable payment devices market was valued at $47.1 billion in 2021, and is projected to reach $158.8 billion by 2031, growing at a CAGR of 13.3% from 2022 to 2031.

The ongoing technological advancements and surge in demand have an impact on market growth. Furthermore, the report provides a quantitative and qualitative analysis of the wearable payment devices market, as well as a breakdown of the pain points, value chain analysis, and key regulations. 

The wearable payments enable users to buy products and services in a secure manner by utilizing innovative technologies built into their wearable gadgets. It is known as the tap-and-go payment method by many businesses and organizations since it gives retailers and suppliers a more secure and error-free payment option.

The outbreak of COVID-19 significantly impacted the growth of the manufacturing and industrial sectors in 2020; however, surge in deployment of advanced payment technologies witnessed relatively high growth during 2021. Nevertheless, the market was principally hit by several obstacles created amid the COVID-19 pandemic such as lack of skilled workforce availability and delay or cancelation of projects owing to partial or complete lockdown across the globe. In contrast, a rise in penetration of internet of things hardware across industrial, manufacturing, and commercial sectors is expected to drive the growth of the wearable payment devices market during the forecast period.

In addition, it enables tapping of contactless cards or payment-enabled devices for executive payments. Moreover, contactless payments are used in BFSI, retails, energy & utilities, and number of other sectors due to benefits offered by this technology, including reduced transaction time, increased convenience, and leveraging customers experience at POS terminal during transaction. Rise in smartphone penetration, increase in convenience & reduced transaction time provided by wearable payment technology, and surge in demand for mobile & wearable contactless payment devices boost the market growth. However, difficulties in the process of replacement of POS terminals, lack of consumer awareness, and security issues associated with technology hamper the market growth. Moreover, integration of IoT and contactless payments technology, and increase in adoption in emerging economies are expected to boost the market growth in the coming years. 

On the contrary, rise in demand for mobile and wearable payments devices is expected to offer remunerative opportunities for the expansion of the market during the forecast period. 

The wearable payment devices market analysis is based on device type, technology, application, and region.

By device type, the market is classified into fitness trackers, smart watches, payment wristbands and smart rings.Increase in shift from traditional payment system to digital system across the developing nations and increasing trend of mobile commerce across the globe boost the growth of the global wearable payment devices market.

By application, it is fragmented into retail & grocery stores, entertainment centers, restaurants & bars, and hospitals & pharmacies. In addition, surge in penetration of contactless payment system at various retail stores, petrol pump stations, and restaurants positively impacts the growth of the market.

By technology, it is divided into near-field communication technology (NFC), radio frequency identification (RFID), and QR and Barcode.Furthermore, wearable payment devices deliver numerous benefits to customers, which include convenient payment processing with the use of wallet or credit card, delivering real-time updates on rewards points, and increasing security to user’s financial details.

Region-wise, the wearable payment devices market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and the rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). Asia-Pacific, specifically the China region, remains a significant participant in the global wearable payment devices industry. Major organizations and government institutions in the country are intensely putting resources into this industry.  

Country-wise, the U.S. acquired a prime share in the wearable payment devices market in the North American region and is expected to grow at a significant CAGR during the forecast period of 2019-2031. The U.S., holds a dominant position in the wearable payment devices market size, owing to the rise in investment by prime vendors to boost the wearable payment devices for consumer electronics and IT & telecom applications. 

In Europe, UK, dominated the wearable payment devices market share, in terms of revenue, in 2021 and is expected to follow the same trend during the forecast period.  Germany is expected to emerge as the fastest-growing country in Europe's wearable payment devices with a notable CAGR, due to advancement in the automotive industry which drives the usage of microelectronics in the country and thus creates lucrative opportunities for the wearable payment devices market growth in Germany.  

In Asia-Pacific, China is expected to emerge as a significant market for the wearable payment devices industry, owing to new product developments and a significant rise in investment by prime players and government institutions. The well-established electronics industry in the Asia-Pacific region and the adoption of innovative technologies have given organizations in the region a competitive edge in the market.   

In the LAMEA region, Middle East countries garner significant market share in 2021 due to the adoption of new technologies, digital transformation, and connectivity are reshaping the future of the automotive and consumer electronics industry in the Middle East. Moreover, the Latin America region is expected to grow at a significant CAGR from 2022 to 2031, owing to shifts in artificial intelligence, industry 4.0, and smart technological changes in recent years, which is expected to reshape the growth of the wearable payment devices in the Latin America region. 

Top Impacting Factors 

Significant factors impacting the growth of the wearable payment devices market include increase in trend of NFC-based mobile commerce across the globe and increase in shift from traditional payment system to digital system across the developing nations. However, the difficulties in the replacement process of point-of-sale (POS) terminal may hamper market growth. Furthermore, increase in use of advanced technology, such as 5G and blockchain technology, in payment systems worldwide provides lucrative wearable payment devices market opportunity.

Competitive Analysis 

The global Wearable Payment Devices Market Outlook is highly competitive, owing to the strong presence of existing vendors. Vendors of the wearable payment devices market with extensive technical and financial resources are expected to gain a competitive advantage over their competitors because they can cater to market demands. The competitive environment in this market is expected to increase as product launches, and different strategies adopted by key vendors increase. Competitive analysis and profiles of the major global wearable payment devices market players that have been provided in the report include Apple Inc., Samsung Electronics Co Ltd, Garmin Ltd., Xiaomi Corporation, Google LLC, Visa, Inc., Barclays, PayPal Holdings, Inc., Mastercard Inc., Fitbit (Google), and Tappy Technology Ltd. 

Key Developments/ Strategies  

According to the latest wearable payment devices market forecast, Samsung Electronics Co Ltd, Garmin Ltd., Xiaomi Corporation, Apple Inc., and Fitbit (Google) are the top 5 key players in the wearable payment devices market. Top market players have adopted various strategies, such as product launches to expand their foothold in the wearable payment devices market. 

• In August 2022, Samsung Electronics Co. Ltd., announced the Galaxy Watch4 and Galaxy Watch4 Classic. They are the first smartwatches to feature the new Wear OS Powered by Samsung, built jointly with Google, and are equipped with One UI Watch, Samsung's most intuitive user interface yet. The Galaxy Watch4 Series is bolstered with advanced hardware performance and delivers a more seamless and connected user experience than ever before.   

• In May 2022, Garmin International, Inc., a unit of Garmin Ltd. announced a band designs for the popular vívofit jr. 3 kids' fitness tracker1 lineup. Kids can track their daily activity with The Mandalorian band or a playful Grogu band. 

• In December 2021, Xiaomi launched wearable S1. The smartwatch is called Xiaomi Watch S1. Xiaomi is expanded the range following the release of Mi Watch Color, Watch Revolve, Mi watch revolve active, and others. 91mobiles speculates that the wearable could be priced relatively affordable, as is the case with Xiaomi in smartphones and other products. 

Key Benefits For Stakeholders 

• This study comprises analytical depiction of the wearable payment devices market size along with the current trends and future estimations to depict the imminent investment pockets. 

• The overall wearable payment devices market analysis is determined to understand the profitable trends to gain a stronger foothold. 

• The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis. 

• The wearable payment devices market forecast is quantitatively analyzed from 2022 to 2031 to benchmark the financial competency. 

• The Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the wearable payment devices market. 

• The report includes the share of key vendors and market trends. 

 Wearable Payment Devices Market Report Highlights