The technology sector is expanding rapidly, setting new standards for creativity and design. One of the fastest growing segments is wearable technology or wearables. These sleek and sophisticated devices have become more than mere fashion statements owing to their high level of connectivity, functionality and convenience. Their popularity has surged in recent years, with smartwatches, fitness and health bands and smart rings being among the commonly used wearables.
Wearables are designed to enhance various aspects of daily life by collecting and processing data, providing real-time information and offering interactive functionalities. They are equipped with advanced computing and wireless communication capabilities that can be used for a wide range of applications. Owing to advancements in miniaturisation, sensor technologies and connectivity, wearable technology has come a long way since its inception. It has evolved from basic fitness trackers to sophisticated smartwatches and augmented reality (AR) glasses, presenting opportunities for growth and expansion across various sectors including healthcare, gaming, textiles and defence.
Market overview
According to the International Data Corporation’s (IDC) report, India’s wearable market achieved a 34 per cent growth in 2023, reporting shipment of 134.2 million units. In the fourth quarter of 2023, wearable shipments surged to 28.4 million units, marking an increase of 12.7 per cent. However, the average selling price of wearables decreased by 15.4 per cent.
The three leading wearable vendors in the country – BoAt, Noise and Fire-Bolt – maintained their positions in the market, offering a variety of products at lower average selling prices and maintaining a steady stream of innovations. Among the top five vendors in 2023, Boult Audio witnessed the highest year-on-year growth. Using aggressive online marketing, BeatXP, a recent addition to the smartwatch market, secured the top spot in the vendor list. Through the strategic introduction of several models in various price ranges, Titan rose to the fourth position.
Wearables are set to make big changes in 2024. These gadgets will play a significant role in simplifying life, enhancing efficiency and tailoring experiences to individual needs.
Growth drivers
The surge in popularity of wearable technology can be attributed to its diverse functionalities, catering to various sectors such as education, healthcare and retail, while also captivating gamers with immersive experiences. Further, advancements in biometric security features such as fingerprint scanners and heart rate monitors are poised to enhance both safety and user experience.
Particularly beneficial for seniors, these devices act as personal aides, providing medication reminders and fall detection while monitoring vital health metrics such as sleep patterns and activity levels. In addition, wearable devices facilitate social connectivity through seamless video calls and promote fitness through activity tracking. They can also help in early health detection by monitoring indicators such as heart rate and blood sugar levels. These factors contribute to the growth of the wearable technology market as consumers are increasingly becoming aware of and taking interest in tracking their health-related vitals while embracing wearables as style statements.
Key trends
Smart jewellery gains popularity
Consumers are increasingly getting drawn to smart jewellery due to its compact design and functionalities such as tracking fitness metrics, receiving notifications and even serving as a digital wallet. For example, smart earrings can play music and provide call alerts, while smart necklaces offer functions like location tracking. Consumer spending on smart jewellery decreased during the initial years of the pandemic, but the market has gradually recovered as lockdown restrictions eased. The recovery can also be attributed to the renewed focus on health and increased usage of contactless payments. The global market for smart jewellery is projected to grow significantly between 2024 and 2031. Smart jewellery makers are collaborating with high-end fashion labels to launch exclusive lines. Several large corporations are currently in the process of integrating voice assistants such as Google Assistant, Alexa and Siri with smart jewellery.
Smart glasses transforming industries
Efforts are under way to improve user interactions with smart glasses through the development of sophisticated eye tracking and gesture recognition systems, advancements in display technology, such as higher resolution and wider fields of view, as well as improvements in ergonomics for enhanced comfort and wearability. To improve the overall functionality and performance of smart glasses, the integration of machine learning and artificial intelligence (AI) is becoming more prevalent. This has led to the rise of industry-specific applications and collaborations between hardware and software developers, driving innovation in the AR smart glasses market. Smart glasses are gaining popularity in various industries such as healthcare, manufacturing and gaming owing to their ability to enhance productivity and improve efficiency.
Smart watches on the rise
These devices strike a balance between style and tech at a wallet-friendly price. According to Canalys’ recent analysis of the global wearable bands market, there was a modest 2 per cent increase in 2023, with total production reaching 186 million units. This growth is largely attributed to a significant 22 per cent rise in basic watch shipments in emerging markets, particularly India. However, there was a notable decline of 9 per cent in smartwatch sales and a 10 per cent decline in basic band shipments. Going forward, the wearable band market is expected to witness significant growth, with a projected 10 per cent increase in 2024. This positive outlook is primarily driven by the anticipated recovery of interest in smartwatches globally, with an expected 17 per cent rise in their shipments. As a result, the smartwatch sector is poised to rebound in 2024, with estimated shipments of 83 million units. Vendors aim to improve shipment revenues by launching advanced smartwatches with upcoming hardware improvements, including significant battery life enhancements, and introducing micro-LED screens on premium devices.
Smart clothing revolutionises wardrobes
Smart clothing involves the integration of electronics, such as sensors, transmitters and receivers, into fabrics to monitor the wearer’s physical state and bodily movements. Such clothes have a stimulation unit that can vibrate and produce sound alerts when the wearer reaches a certain heart rate. Smart clothing already plays a significant role in military uniforms, facilitating location tracking and detection, environmental monitoring and soldier health improvement. As per an industry report, the global smart clothing market is expected to grow at a compound annual growth rate of 31.41 per cent. Valued at $2161.49 million in 2023, the market is projected to reach $11,132.03 million by 2031. The growth can be attributed to increasing consumer demand for connected and personalised experiences that go beyond traditional apparel. Smart clothing can be used in various industries, including sports, fashion and healthcare.
VR headsets catching on
The global virtual reality (VR) headset market reached $11.6 billion in 2023, driven by advancements in gaming technology such as wider fields of view, higher frame rates and immersive audio. They contribute to enhanced experiences by integrating AI and machine learning. The market expansion is fuelled by increased demand for VR headsets and content, primarily due to significant advancements in the gaming experience. Major players in the gaming industry are significantly investing in VR development. Beyond gaming, VR is being used in medical education to help professionals practice operations and procedures in secure settings, thereby enhancing skills and patient care. In the US, there will be 57.4 million VR users, with significant usage in retail (9.5 million users as of 2020), projected to reach 31.5 million globally by 2025. Examples of such VR headsets include Samsung Gear VR, Microsoft HoloLens and Oculus Rift.
Challenges and the way forward
Wearables perform several background tasks, consuming more energy with smaller batteries that cannot support long-term usage and are not so efficient. A potential ethical problem with wearable technology is the shift from convenience to control and from personalisation to manipulation. The cloud is a key tool for the development of wearable apps, but it also presents a risk of data theft by unauthorised parties. Since wearables gather sensitive data, integrating them into research studies raises privacy and data security concerns. Users need ownership, transparency and control over their data. Additional problems include data inaccuracy, poor connectivity and health problems that may arise due to radiation emitted by these wearables.
The challenges notwithstanding, wearable technology is set to make big changes in 2024, particularly in healthcare. These gadgets will play a significant role in simplifying life, enhancing efficiency and tailoring experiences to individual needs. Wearables can promote healthier and more independent lifestyles by monitoring health and safety. The Make in India programme has encouraged the local production of wearables, but addressing privacy concerns and ensuring usability for all are essential to leveraging their full benefits.
