2023 Will See Post-Pandemic-Fueled Growth Continue for Wearables, But Not With 5G Connectivity

As 2023 kicks off, predictions abound on the technology innovations expected in the year ahead. In its new whitepaper, 74 Technology Trends That Will—and Will Not—Shape 2023, analysts from global technology intelligence firm ABI Research identify 41 trends that will shape the technology market and 33 others that, although attracting vast amounts of speculation and commentary, are less likely to move the needle over the next twelve months. In the Wearables space, growth will continue, but not with 5G connectivity.

“War, inflation, political upheaval, energy shortages, and the ongoing fallout from a global pandemic are still creating a persistent sense of uncertainty. Labor shortages, supply chain issues, falling consumer sentiment, and rising input costs are squeezing many markets. However, the common aspect between all of these is that technology can either be the anchor dragging down operations or the mainsail powering companies forward. The devil is in the detail of the how, who, what, and when of technology investment and implementation. This whitepaper serves as a helpful blueprint for building realistic expectations of key technology markets and verticals,” says Stuart Carlaw, Chief Research Officer at ABI Research.

What Will Happen in 2023:

Growth in Wearables Will Continue Post-Pandemic

The wearables market is poised to grow as the latest technologies and use cases are introduced every now and then. ABI Research forecasts that the total wearables market will reach around ~700 million by 2027 with a CAGR of 12.8% calculated from 2022 to 2027. Wearables that were once treated as “nice to have” devices have now become a necessity for consumers due to the increased adoption of the IoT and the increased use of technology by the population. ABI Research expects growing demand for connected devices in the wearables industry (especially healthcare), which will take the wearables market to a new level in the coming years. Also, the OEMs will play an instrumental role in providing portable and simple form factors that will help the wearables industry grow in the years to come.

What Won’t Happen in 2023:

5G Will Not Appear in Consumer Wearables
While wearables can benefit from cellular connectivity, giving them greater freedom from being tethered to smartphones and allowing wearers to use them on the go, 5G wearables are still not expected to be seen in 2023. Component manufacturers have yet to announce any 5G chipsets for wearables. They are not expected to do so soon, as the market potential is small, with few device shipments compared to other mobile devices. Currently, market demand for cellular connectivity in wearables can be served adequately by 4G. At the same time, the complexity of fitting the required 5G components in a small form factor is added.

For more technology trends that will—and won’t—happen in 2023, download the whitepaper 74 Technology Trends That Will—and Will Not—Shape 2023.