Wearable artificial intelligence (AI) market is anticipated to grow at a significant CAGR of 15.3% during the forecast period (2024-2031). The market growth is attributed to the growing demand for wearable health and wellness devices, such as fitness trackers and smartwatches, which are practical ways to measure steps, heart rate, and sleep quality. The growing interest of an individual in keeping an eye on their health and well-being driving the growth of the wearable AI market. These devices also include social features such as challenges and rewards, as well as gamification elements, to keep users engaged and inspired to maintain an active lifestyle. 

Market Dynamics

Increasing Demand in Smart Clothing and Textiles

Smart clothes with sensors, actuators, and microelectronics integrated into them are the result of the fusion of AI with textile technology. These clothes can track physiological data, control moisture and temperature, and even improve sports performance. Smart textiles have the potential to completely transform the sports, fashion, and healthcare sectors with developments in flexible electronics and machine learning algorithms. For instance, Hexoskin (Carré Technologies Inc.) offers Hexoskin Smart Garments that include textile sensors embedded into comfortable garments for precise and continuous cardiac, respiratory, and activity monitoring.

Increasing Adoption of Personalized Assistance and Contextual Intelligence

The ability of wearable AI devices to comprehend human behavior, preferences, and the environment is improving. These gadgets can provide proactive support, contextual notifications, and personalized suggestions by utilizing data analytics and machine learning. Wearable AI is improving user experiences in significant ways, whether it is a fitness tracker modifying workout regimens based on performance or a smart assistant recommending the most efficient path during a commute. A rapidly expanding market with the potential to be revolutionary has been created by the combination of wearable technology and AI. Wearable AI gadgets are transforming the ways individuals interact with technology, from augmented reality glasses that improve everyday interactions to smartwatches that track health.

Market Segmentation

• Based on the product, the market is segmented into smartwatches fitness trackers, AR/VR headsets, smart earwear, wearable cameras, smart clothing & footwear, and others (smart rings, smart patches, and smart jewelry).

• Based on the operation, the market is segmented into on-device AI and cloud-based AI.

• Based on the application, the market is segmented into consumer electronics, gaming, healthcare, enterprise & industrial, and others (aviation, retail, agriculture, construction, and defense).

Smartwatches Fitness Trackers is Projected to Hold the Largest Segment

The smartwatch fitness trackers segment is expected to hold the largest share of the market. With the consumers' rising awareness of their health, the demand for wireless fitness and sports gadgets is predicted to rise. The growing significance of connected devices across several industries and the growing requirement for a connected ecosystem is also expected to contribute to the demand for wearable smartwatches and fitness trackers. Market players are offering smart wearables with advanced health insights including around-the-clock heart rate monitoring, sleep tracking, active/metabolic calories burned, automatic activity detection, connected GPS, and fitness level via estimated VO2 Max estimation. For instance, Withings offers hybrid smartwatches that are much more than fitness trackers they are clinically validated health watches and can help meet goals by tracking steps, runs, swim sessions, and sleep automatically.

Consumer Electronics Segment to Hold a Considerable Market Share

The factors supporting segment growth include the increasing demand for smart wearables to track vital signs more frequently. Consumer wearable electronics encompass a variety of smart wearables used for multimedia, entertainment, sports, and fitness. Tracking daily activities and personal health goals is a common use case for wearable technology. Market players offer AI wearable device that integrates AI for various smart functionalities, including health monitoring, fitness tracking, and personal assistance in consumer electronics. For instance, in July 2021, Qualcomm expanded the wearables segment with new platform investments and the Qualcomm wearables ecosystem accelerator program. The Wearables segment has been growing and segmenting at a rapid pace with products targeted for kids, teens, adults, and seniors across consumer and enterprise use cases. The smartwatch segment is going well beyond health and fitness tracking, expanding across consumer and enterprise segments, and further fueling the growth of this market segment. 

Regional Outlook

Global wearable AI market is further segmented based on geography including North America (the US, and Canada), Europe (the UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). 

Growing Adoption of Wearable AI in Asia-Pacific

• The regional growth is attributed to pivotal factors such as the growing emphasis of individuals on exercise and wellness. The growing urbanization, especially in China and India, is driving up demand for smart wearables as essential components of contemporary urban lifestyles. The Asia-Pacific market's diversified needs are met by new solutions fostered by a vibrant startup environment and a cultural tendency towards technological adoption. 

• Governmental programs supporting the development of smart cities and digital health also hasten the implementation of wearable Al technology. For instance, in April 2024, Sony Thermo Technology Inc. introduced its latest wearable thermo-device kit REON POCKET 5. The fifth-generation model of the REON POCKET series was newly launched in Singapore, Malaysia, Thailand, Vietnam, and the UK, in addition to Japan and Hong Kong. REON POCKET 5 (RNPK-5T) can be worn at the back of the neck to cool or warm the body surface directly at the body contact area.

Global Wearable AI Market Growth by Region 2024-2031

North America Holds Major Market Share

The market growth is attributed to the increased awareness of health and fitness, wearable technology improvements, and seamless integration with smartphones and the IoT in the region. Market players in the region integrating AI into the health and personal performance space can enable even more value from wearable technology. For instance, in September 2023, WHOOP Inc. introduced the new WHOOP coach powered by OpenAI, the first wearable to deliver highly individualized performance coaching on demand. WHOOP has long leveraged the power of machine learning to help members better synthesize and understand their data. Now with GPT-4, OpenAI’s most advanced generative AI system, WHOOP Coach is a revolutionary step forward in offering the most personalized on-demand health & fitness coaching available on the market.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the wearable AI market include Apple Inc., Google LLC, Huawei Device Co., Ltd., Samsung Electronics Co., Ltd., and Xiaomi Group among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers and acquisitions to stay competitive in the market. 

Recent Development

• In June 2024, Movano Health announced that it has added deep learning to its AI-powered heart rate monitoring algorithm. This has reportedly increased the accuracy of the algorithm, which is used in wearable devices.

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the wearable AI market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.