Expanded Use Cases and Ecosystem Integration to Reignite Wearable Market in 2028

Wearable demand growth declined to 14.6% YoY in 2022 from 27.7% YoY in 2021 due to the economic slowdown after the peak of the COVID pandemic. This trend persisted in the first half of 2023, as longer replacement cycles and a lack of compelling features suppressed consumer demand. However, technology intelligence firm ABI Research predicts that the overall wearables market will rebound, reaching 689.33 million shipments by the end of 2028, with a CAGR of 11.3% between 2023 and 2028.

Smart personal audio and wearable band devices were two consumer IoT segments which stood the test of 2020 to reach new heights, according to Canalys’ latest estimates. Smart personal audio devices grew 20% in 2020 to reach 432 million units, while wearable bands grew 10% to reach 185 million units. Both segments continued to be strategic winners as countries emerged from the extended battle against COVID-19, where people grew more health-conscious and became active outdoors.

Artificial intelligence (AI) and fast connectivity – critical ingredients for the next era of category leaders such as smartphones, smart home devices and smart speakers – will drive the U.S. consumer technology industry to a record-breaking $398 billion in retail revenues ($301 billion wholesale) in 2019 and 3.9 percent year-over-year (YOY) growth, which includes streaming services revenue, according to the Consumer Technology Association (CTA). A record growth anticipating the introduction of 5G smartphones and 8K TVs in 2019.