Health and Fitness Wearables Market Growth Promises Investment Opportunities
The healthcare and fitness wearables landscape is transforming rapidly, with technology giants investing significantly in enhancing the accuracy of their devices and broadening the range of health metrics tracked. Leading companies like Apple (AAPL), Alphabet (GOOGL), Garmin (GRMN), and Meta (META) are vying for dominance in this vibrant sector, which is projected to expand from $103.2 billion in 2025 to $324.7 billion by 2032, reflecting a compound annual growth rate (CAGR) of 17.8%, according to a report by Fortune Business Insights.
Innovations Driving the Sector Forward
Emerging technologies such as smart fabrics for muscle movement monitoring, sweat sensors for hydration tracking, and augmented reality wearables for medical training are setting the pace in 2025. Developers are increasingly leveraging artificial intelligence (AI) to analyze workouts, recommend training loads, and even predict potential injuries. AI-driven wearables play a crucial role in preventive healthcare by detecting diseases and mental distress through monitoring stress and sleep patterns. Devices now utilize embedded AI to offer real-time personalized insights by analyzing vital data, including sleep quality, heart rate, blood glucose levels, and metabolism.
Despite these advances, health and fitness wearables face significant challenges. A primary concern remains the accuracy of health monitoring features alongside battery life, particularly for devices intended for all-day use.
Manufacturers Prioritizing Battery Life and Sensor Accuracy
To address these challenges, manufacturers are focusing on enhancing sensor and software accuracy in tracking vital signs. Wearable developers employ AI algorithms to resolve data discrepancies, distinguishing between actual health risks and sensor errors to provide reliable insights. Furthermore, these algorithms analyze historical health data, facilitating early detection of long-term health trends.
With health trackers becoming sleeker, manufacturers are adopting thin-film batteries to enhance performance. AI-driven battery optimization, coupled with advancements such as solar and kinetic charging, plus the use of energy-efficient chips, has become commonplace, extending battery life across devices.
Additionally, wearable manufacturers are responding to evolving consumer expectations by ensuring their devices are 5G-compatible and exploring possibilities in 6G connectivity. As sustainability becomes increasingly important, brands are also integrating recycled materials into their products.
These technological advancements have spurred enthusiasm among athletes, fitness enthusiasts, and the medical community, driving widespread adoption. This rapidly expanding market offers significant investment opportunities for those looking to capitalize on developments within the health and fitness wearables space.
Four Health and Fitness Wearables Stocks to Watch in 2025
Garmin continues to thrive by offering wearables tailored to specific activities, such as swimming, diving, multisport training, and golfing. This approach caters to professionals seeking precise performance metrics. Recently, Garmin expanded its portfolio with the introduction of the HRM 200 heart rate monitor and the Instinct 3 Watch Series, which offers continuous health monitoring and improved battery life with solar charging capabilities, along with devices like the Approach S44 and S50 for golf training and the Descent G2 dive watch.
Additionally, Garmin has made its ECG app accessible to users in Australia and the European Union, offering heart rhythm data and atrial fibrillation (AFib) detection.
The Zacks Consensus Estimate for this Zacks Rank #1 (Strong Buy) stock’s fiscal 2025 earnings stands at $8.25, reflecting a year-over-year increase of 11.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Garmin Ltd. Price and Consensus
Garmin Ltd. price-consensus-chart | Garmin Ltd. Quote
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Apple has elevated its wearables beyond consumer gadgets by integrating clinical-grade features. Recently, the company announced that its AirPods Pro can serve as clinical-grade hearing aids. The Apple Watch’s AFib functionality received approval from the U.S. Food and Drug Administration (FDA) for clinical trials, applicable to users aged 22 and older.
This Zacks Rank #3 (Hold) company has also enhanced its smartwatch capabilities, adding an ECG feature alongside an AI-driven health coaching system. The FDA recently approved Apple’s sleep apnea detection feature for the Watch Series 9, Series 10, and Ultra 2, reinforcing the reliability of these health-tracking tools.
The Zacks Consensus Estimate for Apple’s fiscal 2025 earnings is projected at $7.26, indicating a year-over-year increase of 7.6%.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Alphabet has expanded its fitness wearables lineup with the launch of Google Pixel Watch 3 in September 2024. Prior to this, Alphabet introduced Wear OS 5, focusing on improving battery life across its devices.
In 2025, the company achieved FDA clearance for its Loss of Pulse Detection feature, designed to detect the absence of a pulse due to cardiac arrest or other emergencies, automatically notifying emergency services. Additionally, Google researchers are exploring the use of Personal Health Large Language Models to deliver personalized insights based on individuals’ heart rate, sleep patterns, and activity levels.
The Zacks Consensus Estimate for this Zacks Rank #3 stock…
Meta Expands VR Reach While Alphabet Forecasts Growth in Earnings
Stock’s fiscal 2025 earnings is pegged at $8.90, indicating a year-over-year increase of 10.7%.
Alphabet Inc. Price and Consensus Insight
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Meta Platforms Develops New Products in the VR Space
Meta’s virtual reality (VR) headsets have surged in popularity among fitness enthusiasts. To attract budget-conscious customers, the company recently unveiled the Meta Quest 3S, an entry-level version of its flagship Quest 3 VR headset.
In a significant innovation, Meta is working on a surface electromyography (sEMG) wristband designed to interpret neural signals for digital device control. Collaborating with Carnegie Mellon University, the company is testing these sEMG wearables to aid individuals with spinal cord injuries.
Meta is strategically positioned to capitalize on the growing Metaverse Health and Fitness market, which is expected to expand at a CAGR of 37.01% from 2025 to 2030, as reported. Notably, in 2024, this Zacks Rank #3 company allocated $19.88 billion to its Reality Labs division, focusing on virtual, augmented, and mixed-reality products.
The Zacks Consensus Estimate for Meta Stock’s fiscal 2025 earnings is projected at $25.61, reflecting a year-over-year increase of 7.3%.
Meta Platforms, Inc. Price and Consensus Overview
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
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Apple Inc. (AAPL): Free Stock Analysis report
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This article originally published on Zacks Investment Research (zacks.com).
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
