Smartwatches and Smart Rings Set to Lead Another Growth Surge for Wearables Market

The wearables sector, following a pandemic-driven surge in 2020, is poised for a return to growth. Fueled by continued post-pandemic consumer interest in healthcare and the availability of advanced devices, the market will be led by smartwatches and emerging smart rings. These devices are increasingly used for tracking fitness, health metrics, and chronic disease symptoms. According to global technology intelligence firm ABI Research, worldwide shipments of wearables totaled 375 million in 2023, with projections to reach 591 million by 2029, growing at a CAGR of 7.7%.

“Health and fitness tracking remain the driving forces behind wearables post-pandemic, with advancements in connectivity and integrated sensors offering consumers more features at lower prices,” says David McQueen, Research Director at ABI Research.

Smartwatches, which accounted for over 40% of shipments in 2023, will continue to dominate, boosted by Apple’s Watch series and growing shipments from brands like Huawei and Honor. New features, such as blood pressure monitoring using an inflatable wrist strap, and expansion into emerging markets like India, will drive further growth. However, some categories, such as fitness bands, may see decreased demand as use cases overlap with other devices.

Smart rings, a rapidly growing sector, are gaining traction due to their simplicity and comfort. Used for contactless payments, health tracking, and smart home integration, smart rings offer precise data through proximity to the skin. While the market is fragmented, companies like Oura and McLEAR are leading, with major brands like Samsung and Apple expected to drive broader consumer awareness. The smart ring market is predicted to grow to 70.5 million shipments by 2029, though it will still account for just 6% of the wearables market.

Despite their momentum, wearables have yet to fully embrace cellular connectivity, which could enable real-time data transmission for new use cases, particularly in healthcare. While 4G smartwatches dominate the connected wearables market, the introduction of 5G Lite (RedCap) and chipset innovations from Qualcomm and MediaTek could expand cellular-enabled devices, especially smartwatches.

“The next phase of growth will likely come from enhanced functionality—better battery life, improved fitness metrics, and more affordable designs,” McQueen concludes. “Gesture control and advancements in blood glucose measurement could also be game changers for the sector.”

These findings are from ABI Research’s Wearables and Mobile Accessories Market Share and Forecasts market data and analysis reports. This report is part of the company’s 5G Devices, Smartphones & Wearables research service, which includes research, data, and analyst insights.