Global Smart Devices Market Size (2024 - 2030)

As per the latest research findings, the global smart devices market recorded a value of $56.4 billion in 2023 and is poised to attain a market size of $150 billion by the year 2030. Over the analysis period, the market is anticipated to expand at a compound annual growth rate (CAGR) of 15%.

Market Overview Smart devices encompass a range of intelligent tools serving various functions such as health monitoring, location tracking, navigation assistance, among others. Apart from smart TVs, a majority of these wearable devices are designed to be worn on different body parts like the eyes, wrists, or ankles. The current study evaluates both the present scenario and the future growth prospects of the market. Given that many of these products are still in the research and development phase or undergoing pre-commercialization, the report relies on certain assumptions to project future market figures. Notably, due to the wearable nature of most products, companies must secure regulatory clearances before commercialization. The report also delves into the impact of government regulations on market dynamics, enabling businesses to strategize accordingly.

Smart devices boast advanced features including superior displays and in-built health monitoring capabilities, which significantly drive consumer interest and consequently, market growth. Moreover, the ownership of these devices is increasingly perceived as a status symbol, further incentivizing their adoption. A key growth driver is the development of multifunctional devices capable of fulfilling diverse tasks. For instance, Google's initiative to develop smart contact lenses for monitoring blood glucose levels, with potential expansions into blood pressure monitoring, exemplifies this trend. However, the high cost of these devices compared to conventional alternatives remains a primary constraint on market expansion.

Impact of COVID-19 on the Industry

The COVID-19 pandemic has led to a surge in the use of indirect sales channels within the smart home sector. Lockdown measures imposed worldwide prompted a widespread shift towards online shopping. Consequently, there has been a substantial increase in demand for internet-based retail outlets. Companies have responded by enhancing online purchasing experiences through services such as product setup and installation assistance. Additionally, third-party delivery services have implemented enhanced safety measures to reassure consumers, thereby fueling the growth of internet sales channels throughout the forecast period.

Market Drivers

The pandemic-induced changes are expected to fuel market growth.

The market for smart appliances targeting residential consumers is anticipated to witness sustained growth post-COVID-19. The pandemic has had mixed effects on the smart appliances sector, with increased demand observed for products like refrigerators and washing machines. The widespread shift towards remote work has resulted in individuals spending more time at home, thereby driving the demand for appliances capable of enhancing household efficiency.

Technological advancements in smart home devices are driving market expansion.

Rapid technological advancements are reshaping consumer preferences, with heightened expectations for innovative smart solutions. Manufacturers are thus compelled to invest in cutting-edge technologies to expand their product portfolios and cater to evolving consumer demands. Millennials, in particular, exert significant influence on market trends, given their inclination towards embracing new technologies and digital experiences.

For instance, the popularity of specialized smart household gadgets like temperature control mugs underscores the advantages of integrating sophisticated technology into everyday products, paving the way for further market penetration of smart home devices in the coming years.

Market Restraints

High costs associated with smart devices pose a significant barrier.

The primary drawback of smart home systems remains their prohibitive cost. While numerous companies offer smart home solutions, affordability remains a concern for many consumers. Deployment of such systems requires substantial financial investment, limiting access to a select demographic. Despite potential long-term savings, the initial expense acts as a deterrent for widespread adoption.

Concerns regarding data privacy present challenges.

Given their reliance on internet connectivity, smart devices are susceptible to security vulnerabilities. Disruption of internet services can render these devices inaccessible and increase the risk of unauthorized access or hacking. Incidents such as unauthorized access to home CCTV cameras underscore the potential privacy threats associated with smart home devices, warranting robust security measures.

Global Smart Devices Market- By Product

• Smartwatches
• Smart TVs
• Augmented Reality (AR) Glasses
• GPS-Enabled Jackets
• Wireless Accelerometers
• Smart Socks
• GPS-Enabled Smart Shoes
• Other Devices

In 2020, the leading segment in the market was wrist-worn devices, constituting over 48.9 percent of the total market share. Wristbands and watches designed for fitness purposes, when paired with mobile applications, offer users crucial fitness data and insights. Noteworthy manufacturers in this segment include GOQii, Apple, Xiaomi, Fitbit, and Nike. However, manufacturing challenges faced by key Chinese companies in the first half of 2020, such as workforce limitations and raw material shortages, led to a setback. Nevertheless, a modest recovery was observed in the latter half of 2020 as production facilities resumed operations. The anticipated surge in the utilization of smartwatches and fitness trackers within the healthcare sector is poised to propel category growth in the forthcoming years.

From 2021 to 2028, the eyewear and headwear product sector is forecasted to exhibit a compound annual growth rate (CAGR) of 14.2 percent. Examples of eyewear products include Microsoft HoloLens, VISR Goggles, and Google Glass. Over the forecasted period, there is a projected substantial increase in head-mounted display devices. Moreover, advancements in augmented reality (AR) and virtual reality (VR) technologies are gaining traction, particularly in the healthcare domain. Virtual reality tools and headsets find applications in surgical training and procedures, aiding in the reduction of surgical errors.

Global Smart Devices Market- By Application

• Home Security
• Consumer Electronics
• Healthcare
• Enterprise & Industrial Applications
• Other Applications

The market is segmented into applications such as healthcare, enterprise and industrial applications, consumer electronics, and others. In 2020, consumer electronics constituted more than 48.4 percent of global sales. Consumer electronics serve various purposes including fitness and sports, fashion, multimedia, and infotainment. With escalating consumer demand for wearable electronics, industry players are intensifying efforts to develop devices that facilitate continuous tracking of user activities. Furthermore, the proliferation of connected devices and the expanding network of machine-to-machine communication are anticipated to drive the growth of wearable consumer electronics, thereby fostering market expansion.

Global Smart Devices Market- By Geography & Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

In 2020, North America emerged as the frontrunner, capturing more than 34.7 percent of global sales. This region boasts a substantial population of internet users and hosts numerous organizations at the forefront of technological innovation, including Alphabet, Garmin Ltd., and Apple Inc. Additionally, several industry participants are actively expanding their presence and refining their operational processes in the region. For instance, Xiaomi Corporation announced its venture into the North American market in May 2017, a move expected to bolster the wearable technology market throughout the forecasted period.

Moreover, the Asia Pacific wearable technology market is anticipated to witness rapid expansion attributed to increasing disposable incomes, a burgeoning population of tech-savvy individuals, and the presence of several significant industry players in the region. Additionally, many industry players are anticipated to relocate their manufacturing facilities to the Asia Pacific region due to lower operational costs and labor expenses. The burgeoning urban population in the region is poised to drive the adoption of wearable devices, thereby stimulating market growth.

Global Smart Devices Market- By Companies

1. Samsung Electronics Co. Ltd.
2. Apple Inc.
3. Google Inc.
4. Pebble Technology Corporation
5. Mayo Clinic
6. Adafruit
7. Sony Corporation
8. Panasonic Corporation
9. Vuzix
10. General Electric Co. (GE)

NOTABLE EVENTS IN THE GLOBAL SMART DEVICES MARKET RECENTLY:

• Product Launch: - Apple Inc. introduced the 7th iteration of its smartwatch, the iWatch Series 7, in 2021. This smartwatch boasts features such as phone connectivity, GPS tracking, and health monitoring functionalities.
• Product Launch: - Samsung unveiled its Galaxy Watch 5, a feature-rich smartwatch, in 2022.

Product Launch: - Xiaomi entered the smart glasses market in 2021 with the launch of its inaugural smart glasses capable of capturing images and displaying messages.