The wearable AI market is projected to grow from USD 62.7 billion in 2024 and is estimated to reach USD 138.5 billion by 2029; it is expected to grow at a Compound Annual Growth Rate (CAGR) of 17.2% from 2024 to 2029 according to a new report by MarketsandMarkets™. The growth of the wearable AI market is driven by growing awareness regarding health and fitness among general population and technological advancements in wearables, seamless integration with smartphones and Internet of Things (IoT).

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Wearable AI Market Report Scope:

By product, the AR/VR Headsets segment is projected to grow at high CAGR of the wearable AI market during the forecast period.

The augmented reality/virtual reality (AR/VR) headset segment is positioned for robust growth over the forecast period. The exponential growth of AR/VR headsets in the wearable AI market is fueled by the convergence of immersive gaming experiences and the integration of cutting-edge technologies. Advanced gesture recognition, eye-tracking features, and realistic spatial audio are reshaping the landscape, offering users unparalleled levels of interaction and sensory engagement. The surge in demand is further propelled by the escalating adoption of AR/VR in industrial training, education, and virtual collaboration, expanding the utility beyond entertainment. Moreover, the development of compact and lightweight designs, coupled with increased affordability, is making AR/VR headsets more accessible to a broader consumer base, fostering a robust market trend. This combination of technological advancements and diverse applications positions AR/VR headsets as transformative devices, driving sustained growth in the wearable AI market

Enterprise & Industrial segment is projected to grow at high CAGR of the wearable AI market during the forecast period.

The enterprise & industrial segment is expected to grow at a high CAGR in the wearable AI market during the forecast period. This growth is mainly attributed to the rapid adoption of wearable AI devices driven by the pressing need for improved workforce productivity and safety. Wearable devices equipped with AI capabilities, such as augmented reality (AR) glasses and smart helmets, enable hands-free operation, real-time data access, and streamlined task management in industrial settings. Therefore, considering the ease in operation, the wearable AI device adoption is expected to grow at the highest rate in enterprise and industrial applications.

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Noth America is poised for significant growth in the wearable AI market by 2029.

The North American wearable AI industry is poised for significant growth in the upcoming years. The market growth is driven by high disposable income fueling consumer tech adoption, advanced technological infrastructure supporting innovation, and a health-conscious population driving demand for fitness and health trackers. The dynamic tech ecosystem and a surge in collaborations between Silicon Valley giants and healthcare innovators propel continuous technological advancements, enhancing the market’s competitiveness. The presence of major tech giants such as Apple Inc. (US), Garmin Ltd. (US), Alphabet Inc. (US), Microsoft (US), and Meta (US) further fuels the market growth across North America. The region’s proactive regulatory approach fosters a conducive environment for rapid adoption and integration of cutting-edge wearable AI technologies, further stimulating market growth.

Key players

Key companies operating in the wearable AI companies are Apple Inc. (US), SAMSUNG (South Korea), Alphabet Inc. (US), Microsoft (US), Meta (US), Lenovo (US), Garmin Ltd. (US), Amazon.com, Inc. (US), Xiaomi (China), and OPPO (China).

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