Why the AI wearable market is set to grow by 10x – and it’s not just new gadgets

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ZDNET’s key takeaways 

• Spending on AI-powered wearables is expected to exceed $300 billion in 2033. 
• Healthcare use cases are leading adoption. 
• Wearables transform the way people approach health and wellness.

The market for health wearables might already seem significant, but it’s only heating up. Recent research from ElectroIQ suggests the AI wearable market will experience “phenomenal growth” by 2033, with the healthcare sector leading the adoption push. 

Powered by advancements in wearable adoption, healthcare, and prediction accuracy, the market for AI-enabled wearables will grow from $31.2 billion in 2023 to $304.8 billion by 2033, according to ElectroIQ.

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AI powers the functions behind several smart trackers and health wearables. That capability could come in the form of Google’s redesigned Fitbit creating a workout routine tailored to a user’s specific needs, or Oura providing in-depth analysis of sleep patterns and delivering that information through a digestible sleep score. 

“The year 2025 sees this market no longer being a niche but rather a fast-growing industry with real money, millions of devices, and clear signs that AI will change our lives, work, and health management,” ElectroIQ’s Priya Bhalla wrote in an analysis of the research.

Health technology companies are experimenting with new health-related AI use cases. Several companies, including Oura, Ultrahuman, and Whoop have rolled out blood-testing opportunities through third-party testing labs. 

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Users register for a test through the app, get their blood drawn at a local lab, view their results on the app, and ask the app’s AI assistant questions about their health. The AI, trained on health datasets, can then analyze a user’s test to provide concise and helpful insights and recommendations. 

“These devices are not only considered to be gadgets but are actually becoming indispensable companions for health, fitness, and smart assistance,” ElectroIQ’s Priya Bhalla wrote. 

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The ElectroIQ reports sales for health wearables globally rose from 223 million units in 2019 to 300 million units in 2023. The most popular wearable brands to date include Apple, Huawei, Samsung, and Xiaomi. 

The greater adoption of health wearables is also changing how people consider their health and wellness in general. “People are shifting away from seeing health as something to ‘fix’ only when problems arise. Instead, many view health and wellness as part of a long-term, evolving personal journey,” said researchers at marketing firm Merge in a recent report. 

Merge surveyed over 1,800 respondents aged 26 to 75 to analyze the adoption of wearables. More than half (58%) of respondents reported using a health technology that was prescribed by their doctor or provided through a health insurer. 

Additionally, half of those who used wearables reported that aging, parenting, or the death of a loved one informed their decision to invest in their health through these technologies.