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Smartwatches: Companies battle it out in the expanding wearable market

Smartwatches have become sophisticated healthcare monitoring devices, and companies are exploring how these devices can develop further.

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Quantumrun Foresight
January 12, 2023

Insight summary

Smartwatches continue to be a major category in the wearables market as more companies compete in the space. These devices are becoming more complex with each iteration, with models able to measure heart rates, blood pressure, and oxygen saturation. With these features, smartwatches are becoming the leading healthcare-tracking wearable.

Watches context

According to research firm IDC, 533.6 million units of wearables were shipped globally in 2021, an increase of 20 percent over the previous year. The health and fitness tracker market mainly drove the growth. Hearables were the most popular category, accounting for nearly two-thirds of the overall wearables market, as shipment volume increased by 9.6 percent.

Meanwhile, watches have been increasingly chosen over wristbands because they offer more features and customization. Apple remains the dominant wearable manufacturer, notably its Apple Watch and AirPods models. The Apple Watch unveiled improved accuracy in health tracking by incorporating oxygen saturation and menstrual cycle monitoring that utilizes heart rate data.

The increasing popularity of smartwatches has been driven by their appeal to highly connected customers. Factors such as Internet access, data-driven analytics, technology integrated into daily activities, and changing lifestyles have also helped to create a strong demand for versatile smartwatches. In addition, prices are becoming competitive as more companies enter the field and test new features.

New wearable technologies that utilize wireless ECG (electrocardiogram) and heart rate monitors are also readily accessible in healthcare. Not only are these gadgets reasonably priced, but they may also improve the efficiency of healthcare professionals by making services easier to perform.

Disruptive impact

A 2021 study by Stanford Medicine researchers discovered that current smartwatch technology can detect early signs of some health conditions, such as dehydration and anemia. The researchers compared data among smartwatches and various physiological tests (e.g., blood tests) to see if smartwatches can identify changes that are often verified through clinical measurements. The team found out that the smartwatch readouts are even more accurate in some instances.

For example, smartwatch data gave more consistent heart rate reports than those recorded by doctors. This discovery just highlights how far wearable technology has come and its potential to automate healthcare monitoring.

The industry’s growth is encouraging other tech companies to invest. As a result, more electronic features are being miniaturized and integrated, battery life is being extended, and using edge computing advances, these watches will be able to operate more functions independently of users’ smartphones. Similar to the smartphone, these smartwatches are becoming a platform unto themselves that can create new opportunities for outside companies to build worthwhile apps and integrations.

Implications of next-gen smartwatches

Wider implications of next-gen smartwatches may include:

Increasing incidents of healthcare data breaches as wearables become more common and have fewer cybersecurity features than traditional devices like computers and smartphones.

More partnerships among smartwatch manufacturers and third-party app providers to create enhanced features, such as music, fitness, wellness, and finance.