Wearable AI Market by Product (Smartwatches, Fitness Tracker, AR/VR Headsets, Wearable Cameras, Smart Earwear, Smart Clothing & Footwear)

 

The global wearable AI (artificial intelligence) market size was valued at USD 62.7 billion in 2024 and is estimated to reach USD 138.5 billion by 2029, growing at a CAGR of 17.2% during the forecast period.

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.

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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.