The latest report from market research firm Technavio presented a solid outlook for the global wearables market. According to the firm’s findings, wearables are expected to see a compound annual growth rate of around 15 percent between 2019 and 2023.
A key factor driving that level of growth, according to Technavio, will be the increasing digitization of the global economy. In layman’s terms, the proliferation of things like artificial intelligence, VR, and contactless payments into wearable devices will help to drive their growth. As well, the expanding ecosystem of Internet of Things devices—buoyed by the launch of 5G—will help push wearables into more homes and onto more consumer’s wrists. Technavio also predicted further development in the mobile app ecosystem, which could play a role in the segment’s growth as well.
“Apart from the growing focus on the development of low-powered electronics, factors such as the growing number of partnerships and M&A activities, development of miniaturized electronic components, and the emergence of hybrid smartwatch market will have a key impact on the growth of the wearable electronics market during the forecast period,” a senior research analyst at Technavio said in a statement.