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The Rise of Wearables: Upcoming Growth in Smart Devices

The wearables market, having seen a substantial uptick during the pandemic in 2020, is ready for another surge. This resurgence is largely fueled by ongoing interest in health and wellness following the pandemic, alongside advancements in technology that make smart devices more accessible than ever.

Smartwatches and emerging smart rings are predicted to be at the forefront of this growth. According to ABI Research, worldwide shipments of wearables reached 375 million in 2023, with expectations to jump to 591 million by 2029, reflecting a compound annual growth rate (CAGR) of 7.7%.

Health and fitness tracking remains the primary driver for consumer interest in wearables. As David McQueen, Research Director at ABI Research, notes, the technological advancements in both connectivity and integrated sensors have resulted in more features being offered at lower prices.

Smartwatches: Leading the Charge

Smartwatches have already seized over 40% of the wearables market share in 2023, and their popularity is expected to continue rising. This growth is attributed to major brands like Apple, who continue to innovate with features that resonate with health-conscious consumers. The latest advancements include blood pressure monitoring via inflatable wrist straps and broader market penetration into regions like India, both of which are anticipated to boost sales even further.

Conversely, the demand for certain categories, such as fitness bands, is predicted to wane as their functionalities increasingly overlap with those offered by smartwatches.

Smart Rings: A Growing Sector

Another exciting development in the wearable realm is the rise of smart rings. This compact device has quickly gained popularity due to its sleek design and ease of use. Smart rings support functionalities such as contactless payments, health monitoring, and integration with smart home systems, all while providing precise data collection thanks to their close proximity to the skin.

Leading brands like Oura and McLEAR are paving the way in this burgeoning market. Both offer innovative features while encouraging competition from giant technology companies like Apple and Samsung, which are expected to broaden consumer awareness and acceptance of smart rings. Projections suggest shipments of smart rings could hit 70.5 million by 2029, albeit still accounting for just 6% of the overall wearables market.

The Connectivity Challenge

Despite the momentum both smartwatches and smart rings have garnered, the sector has yet to fully embrace cellular connectivity. This capability could redefine the usage of wearables, particularly in healthcare, by allowing real-time data transmission. While 4G smartwatches dominate today's connected market, the advancements in 5G Lite (RedCap) and chipset technology from players like Qualcomm and MediaTek may enable a wave of new cellular-enabled devices in the near future.

Looking Ahead

McQueen suggests that the next phase of growth within the wearables market will hinge on improved functionality. Expectations are for notable enhancements in battery life, fitness metric accuracy, and affordability, converging to make these products even more attractive to consumers.

Future innovations like gesture controls and pragmatic advancements in blood glucose measurement could serve as significant game-changers, propelling the industry forward.

Conclusion

These insights derive from ABI Research's comprehensive reports, reflecting the clout and potential of wearables as they continue to evolve in response to consumer demand. As the market for wearables expands, it will undoubtedly continue to influence both technology and health trends for years to come.