Wearable electronics is one of the consumer market's hottest topics. Giants like Apple, Samsung, Xiaomi, and Huawei are now competing for a slice of a very promising pie. Regarding our analysis, we estimate that the wearable industry will reach 295M units by 2020, with a market value of $95B.
Three markets will drive this impressive growth: consumer, healthcare, and industrial. Wearable technology is expected to be part of the IoT revolution, bringing useful information directly to the user in a more natural and friendly way than with traditional electronic devices. We expect the consumer market, which is mostly comprised of fitness bands and smart watches to grow faster than the other two. The healthcare market, which covers devices like hearing aids, blood pressure monitors, and back monitor sensors, is expected to grow at a lower rate, since this market has already been growing for many years. Regarding the industrial market, we expected slow, steady growth through 2019, with a significant uptick commencing in 2020.
The global wearable sensors market is increasing at a steady rate due to advancements in sensor technologies, wireless communication, power supply technologies and others. The global wearable sensors market was valued at $157 million in 2014. With the increase in innovation techniques, the global wearable sensors market is expected to grow at a CAGR of 46.6% during 2015 to 2020, to reach market size of $1,630.3 million by 2020. With increasing personal care and health consciousness, for tracking biometrics such as calories burnt, heart rate and others, the demand for wearable fitness trackers and other wearables are increasing. Rapid expansion of internet of things (IoT) is driving demand of wearable sensors devices in various application areas such as healthcare and fitness, consumer electronics and others. High power usage, privacy and security concerns, and technical difficulties are some of the major hindrance in wearable sensors market.
With the miniaturization of sensors and continuous on-chip integration of sensors, such as image sensor, motion sensor, proximity sensor and others, the demand of wearable sensors market is growing. Whereas, the high prices of body and eye wears are limiting the growth of sensors in wearables.