The wearables AI market size is estimated to be USD 16,998.2 million in 2022 and is expected to witness a CAGR of 29.87% during the forecast period 2023-2033, according to a new report by Researchandmarkets.
Rapid adoption of new technologies such as artificial intelligence (AI) and 5G smartphones, development of IoT, the incorporation of wireless technologies, and rising acceptance of smartwatches among millennials and Gen Z are some of the factors contributing to the market growth. Additionally, surge in e-payments by wearables is estimated to support the market growth. However, lack of skilled workforce is expected to hinder the growth.
This is expected to propel the market growth during the projected period. Numerous technological developments are now occurring. Adoption of 5G, biosensors, beacon technologies, smart rings, smart implants, etc. are a few of them.
Additionally, a lot of device manufacturers are putting their focus on adding wellness and personal health features to wearables, including blood oxygen sensors, heart-rate monitors, Electrocardiogram monitors, and other sensors that alert of potential health problems. For instance, Fitbit provides watches with integrated thermometers that alert users of potential fever.
Surge in e-payments by wearables is predicted to fuel the market growth during the projected period. For instance, British menswear brand Lyle & Scott and credit card company Barclaycard worked together to introduce a contactless payment jacket with a chip-in cuff that permitted making contactless payments. Sony launched the Wena 3 smartwatch in May 2022.
It may be carried as a traditional watch and supports mobile payments with Barclaycard in the UK. A wearable technology company named bPay, backed by Barclaycard, sells jackets, fobs, and stickers that enable contactless transactions.