GCC Smartwatch Market Research Report: Forecast (2024-2030)

Market Definition

A smartwatch is a portable device worn on the wrist that supports apps and acts as an extension of a mobile phone. The watches integrate various communication capabilities based on sensors & technologies to provide features such as fitness tracking, notifications, and app integration.

Market Insights & Analysis: GCC Smartwatch Market (2024-30):

The GCC Smartwatch Market size is expected to exhibit a growth rate (CAGR) of around 5.50% during the forecast period, i.e., 2024-2030. The factors attributing to the growth of smartwatches in GCC countries, the UAE, Saudi Arabia, etc., are rising health & fitness awareness, emerging fashion & style trends, rising digitization, and an expanding e-commerce sector. In recent years, there has been a change in consumers’ lifestyles owing to the increasing workload, unhealthy eating habits, and inactive workout regimes. As a result, the prevalence of diseases such as diabetes, obesity, and others in the region has significantly increased.

According to the National Institute of Health, in 2023, almost 66% of the total adult population in the UAE have excess body weight, and around 42% of the adults suffer from overweight. Similarly, individuals in the other GCC nations, like Saudi Arabia, Bahrain, etc., also suffer from diabetes & obesity. These weight-related diseases result in critical health-related issues, like obesity, which increases the risk of heart or cardiovascular diseases. Therefore, consumers are opting for smartwatches to constantly monitor their health metrics, such as heart rate, sleep patterns, and activity levels, driving the GCC Smartwatch Market.

In addition, the governments of countries like the UAE, Saudi Arabia, etc., are launching health awareness programs. As a result, consumers in the region are becoming more health-conscious and are seeking smartwatches with features that constantly monitor their health. Hence, major market players are also launching various smartwatches with advanced health-tracking capabilities to cater to the growing demand for health-conscious consumers. For instance,

• In 2023, Endefo, a Dubai-based smartwatch manufacturing company, launched a new range of smartwatches with advanced health monitoring capabilities.

The increasing launches of new health-tracking smartwatches are gaining the attention of health-focused consumers since they are seeking these watches to track and improve their well-being, driving the GCC Smartwatch Market. Moreover, some digital payment banks are increasingly collaborating with smartwatch companies to facilitate online payments via smartwatches. For instance,

• In 2024, Airtel Payments Bank and Noise introduced a new smartwatch to ensure easy payments for consumers. This smartwatch aims to make contactless payments simple and accessible for more consumers.

Hence, the increasing collaboration between the banks & smartwatch manufacturers to boost digital payments in the country would further gain the attention of individuals preferring online payments over traditional payment solutions, uplifting the GCC Smartwatch Market in the forthcoming years.

GCC Smartwatch Market Driver:

Increasing Government Initiatives to Provide Smartwatches to Tourists & Travelers – The GCC nations, like the UAE, Saudi Arabia, Kuwait, etc., are emerging as popular tour & travel destinations owing to the prevalence of cultural heritage sites like Abu Dhabi's Sheikh Zayed Grand Mosque, Hajj, etc. According to the World Tourism Organization, in 2022, the UAE welcomed around 22.65 million inbound tourists, an increase of about 93.92% compared to 2021. Similarly, other GCC nations, like Kuwait, Saudi Arabia, etc., also witnessed a surge in tourism.

The foreign tourists in these countries are exposed to extreme climatic conditions, which affect their well-being. Several tourists face health-related concerns during their trip to these countries since the temperature of the countries is comparatively higher & the climatic conditions are humid. Therefore, to ensure the well-being of tourists, the governments of countries like Saudi Arabia are providing smartwatches to foreign tourists. For instance,

• In 2023, the government of Saudi Arabia provided smartwatches to travelers visiting Hajj & Umrah to provide several services, like displaying pilgrims' information and monitoring their health status.

This increasing inclination of governments to provide smartwatches to tourists to monitor their health data during their visit is driving the GCC Smartwatch Market. In addition, the governments of these countries are laying initiatives to promote tourism within their countries, which would further facilitate the adoption of smartwatches among travelers, uplifting the GCC Smartwatch Market in the forecast years.

GCC Smartwatch Market Opportunity:

Rising Digitalization Initiatives & Digital Payments Presenting Lucrative Opportunities – In recent years, the governments of the GCC countries have started focusing on digitalizing the administrative services & production processes in different industry verticals to gain a competitive edge over other countries. The governments of these nations are investing heavily to upgrade their countries's digital infrastructure, facilitating the adoption of digital services within the various industry verticals. According to the Ministry of Communication & Technology, the government of the UAE will continue to invest over USD 20 billion by 2026 to upgrade the digital technologies within the country. These rising investments to encourage the adoption of digital services would provide a conducive environment for smartwatch adoption and uplift market growth.

In addition, consumers in GCC countries like the UAE & Saudi Arabia are choosing digital payment solutions. According to the survey by Master Card, a digital payment-providing company, in 2022, around 88% of the total population in the UAE used online payment applications. This surging inclination towards digital payment solutions is compelling the major market players, like Apple, Samsung, etc., to launch smartwatches with digital payment options. The rising launches of smartwatches with digital & contactless payment solutions would gain the attention of consumers who prefer flexibility & convenience, augmenting the GCC Smartwatch Market during the forecast years.

GCC Smartwatch Market Challenge:

Incompatibility of Smartwatches with Few Smartphones Hinders Market Growth – Smartwatches traditionally utilize Bluetooth, Wi-Fi, NFC, or cellular connectivity for communication with paired devices. However, the new generation of smartphones has upgraded versions of Bluetooth, which is incompatible with the smartphone range. As a result, customers fail to pair their smartwatches with their smartphones. They spend additional money to purchase accessories that make the devices compatible. Hence, consumers restrain themselves from buying smartphones that are incompatible or based on outdated bluetooth technology to avoid additional overhead, hampering market growth & expansion.

In addition, the new-generation smartphones, based on different operating systems, software versions, and hardware, are incompatible with smartwatches. For instance,

• In 2023, Apple Inc. launched the advanced new Apple Watch Series 9, which is only compatible with a few generation iPhones.

These incompatibility issues deter the function of consumers’ smartphones & other devices. Hence, consumers restrain themselves from purchasing smartwatches, hampering market growth & development.

GCC Smartwatch Market Trend:

Increasing Inclination Towards Customizable & Technologically Advanced Smartwatches – The Gen Z population in the GCC countries, like Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, etc., is significantly increasing, fueling the demand for tailored & personalized smartwatches in the region. The Gen Z population follows popular influencers online, and these individuals generally seek fashion & styling tips from these influencers. According to the research survey by iCuberWire, in 2023, approximately 66% of Gen Z consumers purchased products based on their favorite influencer's recommendation. These influencers have quoted smartwatches as fashion accessories since they are aesthetically appealing, driving the sales of smartwatches in GCC.

In addition, these influencers are opting for tailored smartwatches for a more personalized experience. As a result, the Gen Z population in the GCC countries is purchasing smartwatches, driving the GCC Smartwatch Market.

Moreover, market players like Casio, Samsung, etc., are increasingly amalgamating emerging technologies and innovations, such as augmented reality (AR), biometric authentication, and advanced sensors, within their smartwatches. These technologically advanced smartwatches provide customized app layouts and set preferences for notifications & widgets. As a result, more consumers will purchase smartwatches in the forthcoming year to benefit from the functional versatility of technologically advanced smartwatches.

GCC Smartwatch Market (2024-30): Segmentation Analysis

The GCC Smartwatch Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. According to the analysis, the market has been further classified as:

Based on Display Type:

• TFT LCD
• AMOLED
• PMOLED

Among them, AMOLED held the largest market share in the GCC Smartwatch Market. AMOLED display screens emit light when current is running through them, allowing for precise control over brightness and color accuracy. The light emission results in sharper images, richer colors, and superior contrast ratios compared to traditional LCDs, making AMOLED a preferred choice for displaying dynamic watch faces, graphics, and multimedia content on smartwatches. In addition, AMOLED display types are thinner, lighter, more efficient, and offer better performance and color quality than other technologies. As a result, consumers prefer to buy smartwatches with AMOLED displays, enhancing the market share of AMOLED in the GCC Smartwatch Market.

Moreover, AMOLED displays are inherently energy-efficient and consume less battery, unlike other display types. The AMOLED screens only illuminate individual pixels when needed. This pixel-level lighting control reduces power consumption, prolonging smartwatch battery life and enabling longer usage durations between charges. As a result, consumers prefer to purchase smartwatches with an AMOLED display type to take advantage of the extended usability of their devices.

Based on Sales Channel:

• Online
• Exclusive Outlets
• Multi-brand Stores
• Others

Based on the sales channel, the online segment gained a dominant market share in the GCC Smartwatch Market. In recent years, consumers in the GCC nations have increasingly favored purchasing smartphones through online sales channels over traditional retail outlets since online shopping platforms provide convenience. Consumers nowadays prefer to buy smartwatches online since the online platforms offer unparalleled convenience and accessibility. Moreover, the e-commerce platforms provide a wide selection of smartwatch brands, models, variants, colors, and configurations unavailable in retail stores. As a result, consumers prefer to buy smartwatches from the online sales channel since it allows them to compare specifications & read reviews online before purchasing.

Furthermore, several retailers are partnering with e-commerce platforms to strengthen their sales. As a result, e-commerce is offering consumers access to the latest flagship smartwatches, mid-range devices, budget-friendly options, and exclusive releases by retailers. Hence, consumers with diverse preferences and budget impediments rely on e-commerce platforms to purchase smartwatches from online platforms, uplifting the market share of online sales channels in the GCC region.

GCC Smartwatch Market (2024-30): Regional Projections

Geographically, the GCC Smartwatch Market expands across:

• Saudi Arabia
• The UAE
• Qatar
• Bahrain
• Kuwait
• Oman

Geographically, Saudi Arabia acquired a significant market share in the GCC Smartwatch Market. Saudi Arabia boasts a tech-savvy population with a strong affinity for cutting-edge gadgets and digital innovations. The country's adult population, i.e., the 18–25 age group, are early adopters of new technologies, including smartwatches, due to their rising desire for connectivity, convenience, and staying updated with the latest tech trends. This tech-savvy culture in the country fosters a conducive environment for the adoption & integration of smartwatches into daily lifestyles. As a result, Saudi Arabia is one of the leading GCC nations with the highest smartwatch sales.

Further, there is a growing emphasis on health and fitness in Saudi Arabia due to the increasing health awareness programs & initiatives. As a result, the adoption of smartwatches equipped with fitness tracking features, heart rate monitors, sleep analysis, and wellness apps is rising, uplifting the market share of Saudi Arabia in the GCC Smartwatch Market. Furthermore, the increasing inclination towards smartwatches that help in monitoring health metrics, tracking workouts, and setting fitness goals is emerging as a popular choice among health-conscious individuals in the Kingdom. Therefore, the country will continue to dominate the GCC Smartwatch Market during the forecast years.

GCC Smartwatch Market Industry Recent Development:

• In 2023: Samsung launched the Galaxy Watch 6 Classic Astro Edition smartwatch, which aims to help consumers monitor their vital health status.

Gain a Competitive Edge with Our GCC Smartwatch Market Report

1. GCC Smartwatch Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. GCC Smartwatch Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.