Market and Technology Trends

Sensors & Actuators for Wearables 2023

By Yole Intelligence — Feb 2023

After smartwatches and hearables momentums, AR smart glasses will drive growth of the sensors & actuators for the wearables market to $5.7 billion in 2028

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Key Features

Market segmentation data for 2022 and forecasts for 2023 - 2028 split into three end market (consumer, medical and industrial). Breakdowns by end systems in units, and by types of sensors & actuators in units and dollars, including modules.
Market segmentation data for 2022, and forecasts for 2023 - 2028 for each end market (consumer, medical and industrial). Breakdowns by body location, and by types of sensors & actuators, in units and dollars, including modules.
Focus on AR/VR headset technologies and integration roadmap of sensors & actuators into these systems.
Detailed explanation of current and future market trends, covering the main wearables technologies such as smartwatches, TWS earbuds, hearing aids, and smart patches.
Description of medical certifications in different areas (USA, CE, Japan, and China)
Market shares at the sensors & actuators level, for the consumer and medical end-markets, excluding modules.
Fundraising and M&A analysis to help understand the ecosystem’s dynamics.
Description of the supply chain including the various types of players depending on the type of sensor.
Technology trends of the most dynamic sensors & actuators markets, along with roadmaps. A short discussion is included on the data processing related to wearables systems.

What's new

Wearables market is split into three end markets: Consumer, Medical, and Industrial.
Scope, data, forecasts, and market shares focusing on the sensors & actuators level and not at the end-system level.
Focus on and analysis of the impact of AR/VR wearables on the sensors & actuators for the wearables industry.
Details on leading players’ activities are included throughout the report.

Product objectives

This new Yole Intelligence report provides a complete analysis of Sensors & Actuators for wearables markets and the technologies:

Updated market data and forecast up to 2028, in units for end-systems and in value and units for sensors & actuators split into three end markets (consumer, medical and industrial).
Description of each market and related trends.
Analysis of strategic moves since 2021, including mergers & acquisitions, new product launches, partnerships, and fundraisings.
Understanding of the competitive environment, with an overview of key players at the sensors & actuators level by end market (excluding industrial) and market shares.
Supply chain description and analysis.
Latest technology trends at the sensors & actuators level.

Extra-functions at the heart of wearables innovation

Wearable end systems are widely used in consumer, medical, and industrial applications. The total number of wearable end systems was 949 million units in 2022, and we forecast it will reach 1.2 billion units in 2028 with a 4% CAGR22-28 (by volume). In terms of sensors and actuators, this represents a global market of almost 4.17 billion units ($3.58B) in 2022, and the market is expected to grow to 6.77 billion units ($5.7B), with a ~8% CAGR22-28 (volume and revenue growth).

The wearables industry is broad, diversified, and growing rapidly. Global consumer mega-trends, teleconsulting, remote patient monitoring, preventive medicine, and the improvements in connectivity in Industry 4.0 by 5G are boosting this market. As in pastry, there are many recipes, but only some give good results using a precise mixture of appearance, taste, and texture. Hearables, noninvasive glucose monitoring, and AR/VR headsets should be the most dynamic systems for the three end markets in the coming five years.

Two giants leading the way in a fragmented ecosystem

Almost 80 % of the sensors & actuators market for wearables (in value) is held by 15 players. Sensor makers - generally specialized in specific solutions such as IMUs, accelerometers, and microphones -lead the market. Bosch is the leading company with a 24% share by value of the consumer market and a 15% share by value of the medical market in 2022. Knowles is the leading company with a 23% share by value of the medical market and a 5% share by value of the consumer market in 2022. Bosch and STMicroelectronics lead the consumer market with inertial sensors and accelerometers in smartwatches, fitness bands, and TWS earbuds. Considering revenues only generated by sensors and actuators, Knowles and Sonion lead the medical market with MEMS microphones (high ASP compared to other sensors) for hearing aids.

Some wearables markets are very open, although others are structured around big players. For example, many start-ups bring new technologies for hearables to the table, attracting the bigger players (e.g., Arioso Systems, acquired by Bosch). While the market for smart rings is mainly driven by small companies, and big players are still waiting for a good opportunity before entering this market. With multiple long-term trends, new markets will be distributed among stakeholders in the coming years. Therefore, innovation and proper ecosystem development will be crucial to secure a strong market position.

Promising technologies for the next wearables wave

The difference between end systems for industrial, consumer, and medical applications tends to blur over time. One of the primary purposes is to inform the user of their overall healthcare, sleep quality, and wellness. Users have then the keys to act on their lifestyles.

Four main technology trends are expected. There are efforts to improve and combine signals coming from different sensors. For example, PPG signals are coupled with IMUs and ECGs to improve accuracy and improve the signal-to-noise ratio. In order to integrate PPG modules in smaller systems, such as TWS or smart rings, improvements are being made to these modules in order to reduce the size and power consumption and increase the sensitivity. Noninvasive technologies able to monitor the glucose level are in development in order to integrate them into smartwatches, hearables, or smart patches. In addition, some technologies could extend to detecting other molecules, such as ketone, lactate, and alcohol concentrations. And finally, there is a growing penetration of MEMS technologies in consumer and medical hearables applications.

Sensors & actuators dedicated to wearables end systems face several challenges. They must have the lowest possible power consumption, a small footprint, high accuracy, and should integrate more and more intelligence at the sensor level, giving them extra functionalities.

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Sensors & Actuators for Wearables 2023

After smartwatches and hearables momentums, AR smart glasses will drive growth of the sensors & actuators for the wearables market to $5.7 billion in 2028

Extra-functions at the heart of wearables innovation

Two giants leading the way in a fragmented ecosystem

Promising technologies for the next wearables wave