Germany Smartwatches and Wearable Technology Market Report 2024
£ 2,195 (Excl.Tax)
Report Summary
43% of Gen Z and 45% of Younger Millennials agree that it is hard to know how to get the most out of wearable technology products. This shows that consumers need assistance to derive maximum value from wearables. For wearables such as smartwatches, it is vital to communicate the value of AI, especially in delivering personalised health advice as it is the primary use case of smartwatches.
Due to tight household budgets, the wearable tech market experienced a decline in 2023, which is expected to continue in 2024. As consumer finances improve and consumers see the increased value AI provides in enhancing and maintaining their health, the market is expected to grow by 1% in 2025.
A notable proportion of consumers across all ages are worried about the amount of personal data shared with wearable brands and the side effects of monitoring health metrics. These concerns pose a threat to the growth of the wearable industry, particularly since most products are positioned as health device.
Younger Millennials display the highest interest in purchasing smartwatches (43%). To appeal to this group, it is important to convey the step-change in value AI provides in terms of personalised health insights and recommendations, alongside other important core factors such as longer battery life.
This report looks at the following areas:
- Key drivers affecting smartwatches and wearable tech, including the economic situation, health and wellbeing, and AI developments
- Ownership of wearable technology devices, including smartwatches and fitness bands
- Brand of smartwatch and fitness band owned
- Ownership of smartwatches and fitness bands, including ownership duration and money spent
- Activities done, or interested in doing, with a smartwatch
- Factors important when choosing a smartwatch, such as long battery life and integrated AI functions
- Plans to purchase a smartwatch/fitness band in the next 12 months
- Attitudes towards wearable technology products
As consumer finances recover, it is possible to drive growth by showing how AI is helping consumers achieve their health goals.
Venkatesh Modi, Research Analyst, Germany
Table of Contents
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EXECUTIVE SUMMARY
- The five-year outlook for smartwatches and wearable tech
- Market context
- AI shows the potential to enhance the capabilities of wearables in health monitoring and providing personalised recommendations
- Wearables’ ability to support holistic health positions them for growth
- Mintel predicts
- The wearables market will experience growth driven by the increased value from AI and improving finances
- Market size & forecast
- The wearable market will experience gradual yet consistent growth
- Opportunities
- Younger Millennials show the highest interest in purchasing smartwatches
- Highlight the value of AI in health-related areas to capitalise on interest among Younger Millennials
- Appeal to women through exercise recommendations based on the menstrual cycle
- Position smartwatches as a way to unplug from smartphones
- Help individuals preserve their mental wellness while striving to achieve their fitness goals
- The competitive landscape
- Ownership of Samsung smartwatches increases
- Graph 1: brand of smartwatch owned, 2023-24
- Fitbit remains the market leader in the fitness band market
- Graph 2: brand of fitness band owned, 2024
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MARKET DRIVERS
- The German economy
- The inflation rate is bouncing back to more conventional levels
- Consumer confidence is recovering but remains fragile
- Graph 3: financial confidence index, 2022-24
- High cost of living continues to negatively affect Germans’ spending on technology
- Graph 4: changes in spending on technology and communications products in the last 12 months*, 2021-24
- Fragile consumer confidence will affect spending on wearables
- Graph 5: consumer views on cost-of-living crisis, by net monthly household income, 2024
- Health and wellbeing
- Health perceptions of Germans decline
- Graph 6: perception of general health for a person of one’s age, 2021-24
- Germans’ desire to stay active will continue to drive the wearable industry
- Graph 7: perception of physical fitness, 2024
- Capabilities for measuring and supporting mental health position wearables for growth
- Graph 8: perception of mental health, 2024
- Artificial intelligence
- AI shows potential to enhance the capabilities of wearables…
- …but data privacy concerns need to be addressed
- Graph 9: consumers who agree personalised advice would make them happy to share their personal data with an artificial intelliegence (AI), by generation, 2024
- Sustainability
- Consumers will demand more sustainable wearable tech products
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WHAT CONSUMERS WANT AND WHY
- Ownership of wearable tech
- The ownership of smartwatches and wireless over-ear headphones grows
- Graph 10: wearable tech ownership, 2023-24
- Younger Millennials are the key target group for wearables
- Graph 11: wearable tech ownership among Younger Millennials, 2023-24
- Smartwatch ownership is increasing most among higher income households
- Graph 12: smartwatch ownership, by income, 2023-24
- Brand of smartwatch/fitness band owned
- Samsung maintains its lead over Apple
- Graph 13: brand of smartwatch owned, 2023-24
- Smartphone brand influences the choice of smartwatch brand, posing a challenge for competitors
- Apple smartwatches are more popular among Gen Z
- FitBit remains the market leader in the fitness band market
- Graph 14: brand of fitness band owned, 2024
- Duration of ownership and money spent
- Many smartwatch owners show potential for upgrading
- Graph 15: smartwatch ownership duration, 2024
- More than a third of fitness bands are more than two years old
- Graph 16: fitness band ownership duration, 2024
- Highlight connectivity features to encourage upgrades
- Mid-range smartwatches constitute most smartwatch purchases
- Graph 17: money spent on smartwatches, 2024
- Spending on fitness bands is fragmented
- Graph 18: money spent on fitness bands, 2024
- Activities done or interested in doing with a smartwatch
- Consumers display high interest in monitoring health-related activities
- Graph 19: activities done or interested in doing with a smartwatch, 2024
- Position smartwatches as a health companion rather than just a data-gathering device
- Enhance the value of smartwatches for women by providing menstrual cycle-based exercise recommendations
- Combine navigation with health monitoring to maximise the advantages of a smartwatch
- Important factors when choosing a smartwatch
- Core factors of a smartwatch remain important while few seek AI-integrated functions
- Merge popular use cases with key factors to attract a broader audience
- Focus on the value added by AI rather than solely making AI claims
- Battery life, looks and being lightweight are key when advertising smartwatches
- Help Younger Millennials extract maximum value from smartwatches with the help of AI
- Link sustainability and robustness to appeal to high-end smartwatch buyers
- Graph 20: smartwatch owners or potential buyers who consider usage of recycled materials to be an important factor when choosing a smartwatch, by net monthly household income, 2024
- Important factors when choosing a smartwatch vary by gender
- Graph 21: factors important when choosing a smartwatch, by gender, 2024
- Position smartwatches as a fashion accessory to appeal to female consumers
- Garmin targets women with its Lily 2 smartwatch
- Purchase plans
- More consumers plan to buy a smartwatch compared to a fitness band
- Capitalise on higher interest among Younger Millennials to drive sales
- Graph 22: plans to purchase a smartwatch/fitness band, by generation, 2024
- Generate more interest in smartwatches among younger female consumers
- Graph 23: plans to purchase a smartwatch in the next 12 months, by age and gender, 2024
- Attitudes towards wearable technology products
- Concerns overshadow the usefulness of wearables among consumers
- Graph 24: attitudes towards wearable technology products, 2024
- Help younger consumers make the most of their smartwatch with personalised AI health recommendations
- Samsung explains how it calculates energy score with the help of Galaxy AI
- Reduce young consumers’ worries about sharing personal data
- Graph 25: consumers who agree that the amount of personal data shared with brands through wearable technology products is concerning, by generation, 2024
- Apple provides reassurance on data privacy to consumers
- Promote smartwatches as a way to detox from smartphones
- Assist individuals in maintaining their mental wellbeing as they work towards their fitness goals
- Ways to support consumers’ mental wellness
- Convincing consumers to purchase another device will be challenging for smart glasses brands
- Graph 26: consumers who agree that sunglasses that can capture video and play music are appealing, by generation, 2024
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LAUNCH ACTIVITY AND INNOVATION
- Samsung launches Galaxy Watch 7 and Watch ultra
- Apple launches Watch series 10 and Watch Ultra 2
- Google launches Pixel Watch 3
- Samsung enters the smart jewellery market with Galaxy Ring, expanding its wearables portfolio
- Amazfit partners with Wild.AI to provide advanced health management solutions for female consumers
- Advertising and marketing activity
- Samsung promotes long battery life and waterproof capabilities of Galaxy Watch Ultra
- Amazfit promotes how AI can provide convenience in daily life
- Meta promotes new collection of its smart glasses
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MARKET SIZE AND FORECAST
- Wearable sector experiences the impact of decreased spending
- Graph 27: wearables* market value, 2016-24
- After a dip due to financial worries, the wearable market is expected to return to an upward trajectory
- Improving finances and increased value due to AI will drive growth in the wearable tech market
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APPENDIX
- Appendix – products covered, abbreviations, consumer research methodology and language usage
- Products covered in this Report
- Abbreviations
- Consumer research methodology
- TURF analysis methodology
- A note on language
- Appendix – market size and central forecast methodology
- Forecast methodology
- Forecast methodology – fan chart
- Market size – value
- Market forecast and prediction intervals – value
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