What accredited investors in life sciences should watch out for: Wearable healthcare devices
With the advent of smartwatches, health-tracking bracelets, internet-connected eyewear, and a host of other wearable technology, it has been unsurprising that wearables have become so popular in a relatively short amount of time. Since the first smartwatch was released in 1998, the size of the market has grown rapidly and consistently year over year, and is currently estimated to be at $40.58 billion globally, with the North American market representing 34.7% of this. Financial advisers have projected only an upward trend for wearable biomedical technology, and accredited investors in life sciences and other speculators have definitely taken notice.
Here’s why things are looking up in wearable tech.
A number of factors have played into the tremendous upside that speculators and investors see in the wearable tech industry. Foremost among these is the continuous rise of the Internet of Things (IoT) phenomenon. As more devices with wireless internet connectivity are released into the market, it stands to reason that some of these include items that people would wear. Smartwatches and fitness trackers have become more ubiquitous than ever, and analysts predict that adoption of wearable tech will only continue as the features and functionalities of these devices continue to improve.
Alongside this, the widespread improvement of mobile internet connections has also contributed to the growing popularity of wearable technology, as well as the rapid growth of a very tech-savvy population that seeks to be online as much as possible.
Finally, the global COVID-19 pandemic has left an indelible mark on the wearable tech market as well. While in the short run, the pandid disrupt supply chains and impaired manufacturing and distribution operations worldwide, it also caused many people globally to become more health-conscious. With retail operations opening back up and access to consumer goods returning to normal, it is expected that smartwatches and other devices with health monitoring functionality will become even more popular than they already are.
What does the future for wearables look like?
Analysts and financial advisers continue to have a fairly rosey outlook in regard to the wearable tech market, in part due to the factors mentioned above, but also due to the emergence of other markets that until recently had not been significant players. Projections for the year 2024 peg the size of the market to grow by $35.48B year over year, representing a compounded annual growth rate of around 13%. While the North American market will still comprise the lion’s share of the global market, much of the growth that will occur over this time is expected to come from the Asia-Pacific region, with China and Japan driving much of it.
The projected growth rate of between 13% and 14% is expected to extend into 2029, resulting in a total market size of in excess of $118 billion globally, with the US market expected to mirror this growth from 2021 to 2028. The wristwear market alone is being projected to exceed $62 billion by 2028, while in terms of application, consumer wearable electronics as a whole are being projected as the biggest market segment, with a market projection in excess of $58 billion by that year.
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