Wearable devices are the smart electronic devices that are worn in close contact with the skin. Smart watches, wrist bands and smart rings are some examples of the most popular wearable devices in the recent times. They can detect, analyze and transmit information about the vital signs of the body. They are devices which use the application of internet of things (IoT) as the data is actively exchanged with the operator, manufacturer and other connected devices. These devices are also used for contactless payment. Since the beginning of the COVID-19 pandemic, people have been apprehensive about using physical cards for payment at retail outlets since it carries the risk of infection. Contactless payment using wearable technology and smartphones has emerged as the first choice of people for making safer transactions.
Market Size and Forecast
Governments across the world have recommended using contactless payment options amid the COVID-19 outbreak. There has been a massive surge in digital payments since then. Wearable payment device technology has become increasingly reliable and efficient over the years upon usage of cutting edge technology. Many global and regional players have been launching new models of wearable devices frequently at relatively lower prices. Owing to these factors, the wearable payment device market is expected to grow by a significant CAGR during the forecast period, i.e., 2020-2028. The market is segmented by device into smart watches, wrist bands and smart rings. Out of these, the smart watch segment is anticipated to grow at the fastest rate on the back of their increasing popularity and newer models being launched frequently. CLICK TO DOWNLOAD SAMPLE REPORT
Easier Compatibility with Smartphones
Wearable devices connected to the smartphones can be used for carrying out major functions. Additionally, the ease of use of the technology has been enhanced in the recent years. Owing to these factors, the market is anticipated to grow at a rapid pace during the forecast period. Rising sales of smart watches that are compatible with the smartphones is further predicted to drive the market growth during the forecast period.
Increasing Investments in Research and Development
Increasing investment in wearable payment device research and development, in order to invent sophisticated technology that helps in enhancing end product performance, is estimated to aid in boosting the market growth over the next few years.
Rising Adoption of Cashless Transactions
Governments across the world have been encouraging the usage of digital transactions for convenience and transparency. Additionally, upon the COVID-19 outbreak, contactless payment solutions have become a preferred mode of payment. This is predicted to result in a significant market growth in future.
Limited Battery Life of the Devices
As the features of smartphones and smart watches are increasing, it is taking a toll on the battery life of devices in which the technological development has not kept pace with the software. This is estimated to have negative impact on the market growth over the forecast period.
Rising Number of Digital Scams
Rising digitalization is giving rise to different types of financial frauds such as remote access mobile application scam, phishing, scams using social engineering among others. It has created a wide trust deficit among the affected people who feel digital payments are not secure. This is further predicted to negatively affect the market growth.
Our in-depth analysis of the wearable payment device market includes the following segments:
By Distribution Channel:
On the basis of regional analysis, the wearable payment device market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region out of which, the market in North America is anticipated to hold the largest market share on the back of high investments in wearable payment device technology in the region. Moreover, the market in Asia Pacific is anticipated to record the highest CAGR on the back of high adoption rate of smart watches and digital payment technology in the region.
The global wearable payment device market is further classified on the basis of regions as follows:
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