[March 20, 2018] |
|
Smartwatches to Have More Than Just Fifteen Minutes of Fame, According to IDC
Worldwide shipments of wearable devices is on track to grow 15.1% in
2018, totaling 132.9 million units over the course of the year. The
overall market is also expected to deliver a compound annual growth rate
(CAGR) of 13.4% over the next five years, culminating in 219.4 million
units shipped in 2022, according to the International Data Corporation (IDC)
Worldwide
Quarterly Wearable Device Tracker. With cellular connectivity on the
rise and shifting consumer preferences, IDC (News - Alert) believes smartwatches will
account for almost two out of every five wearable devices shipped in
2022.
"Consumers are finally starting to understand and demand the utility of
a smartwatch," said Jitesh
Ubrani senior research analyst for IDC Mobile
Device Trackers. "At present, fitness uses lead by a mile but mobile
payments and messaging are starting to catch on. The addition of
cellular connectivity is also starting to resonate with early adopters
and looking ahead the emergence of new use cases like music streaming or
additional health sensors will make cellular connectivity pivotal to the
success of the smartwatch."
"The appetite for wristbands and basic watches will not go away," said Ramon
T. Llamas, research director for IDC's Wearables
team. "Both products will enjoy sustained popularity as users' first
wearable thanks to their simplicity and lower price points and will
reach new audiences as part of digital health solutions (wristbands) or
for those who want wearable technology but prefer the traditional look
and feel of a hybrid watch."
With watches and wristbands in the spotlight, wearables in other form
factors will capture a minority share of the market, although this share
will continue to grow during the forecast period. Earwear and clothing
are expected to be the leading underdog categories as smart assistants
slowly become indispensible and are incorporated into headphones and as
athletes and workers adopt sensor-laden clothing.
Category Highlights
Over half of all smartwatches in 2017 were shipped by Apple, and
while the company will maintain its lead in this category, competing
products from the likes of Fitbit, Garmin, and all the Wear OS
(previously Android (News - Alert) Wear) vendors will gain traction over time. Another
growing sub-segment within this category are smartwatches dedicated to
kids, though these will largely be relegated to China. Smartwatches are
also expected to have the highest average selling price and are forecast
to account for more than two-thirds of the dollar-value of the entire
wearables market.
Basic watches are expected to grow over the course of the
forecast with a CAGR of 16.4% as new vendors and fashionable designs
drive the category forward. However, the category does face challenges
as vendors have struggled to educate users around the benefits of these
devices. Many consumers still view these devices as timepieces rather
than as wearables that are part of a larger ecosystem and as a result
IDC expects this category to remain secondary to their smarter
counterparts.
The low-cost, commoditized hardware of basic wristbands will
continue to hold their place in emerging markets. These wearables are
expected to account for 22% of all wearables shipped in 2022, down from
36% in 2018. However, the ease of use and overall accessibility of these
devices positions them as the perfect starter device for the remainder
of the wearables category.
Earwear wearables are forecast to ship 13.3 million units by the
end of 2022 with a 48.0% CAGR from 2018-2022. With the rise of smart
voice-enabled assistants, hardware developments from chip makers like
Qualcomm (News - Alert), and the growing popularity of wireless headphones, IDC
anticipates this form factor to be the most popular outside of
wristbands and watches.
Sensor-laden clothing is on track to grow from 2% share in 2017
to 5.3% share by 2022. To date, this category has been driven by
step-counting shoes from the likes of Li-Ning or Under Armour that
mostly cater to average consumers. However, going forward, IDC
anticipates other, niche brands to start gaining traction as they target
professional athletes or enterprise workers in hazardous environments.
The Others category, devised of lesser known wearables, such as
those that can be clipped to different parts of the body or head-worn
devices like the Muse headband, or even smart wristbands (ones that can
run third party apps), is expected to maintain a very small portion of
the overall market. The non-standard form factors will make these
devices a tough sell to the mass market, but their ability to cater to
very specific needs may make them a somewhat lucrative business.
|
Worldwide Wearables Forecast, Product Category Shipments,
Market Share and CAGR, 2018 and 2022 (shipments in
millions)
|
Product Category
|
|
2018 Shipments*
|
|
2018 Market Share*
|
|
2022 Shipments*
|
|
2022 Market Share*
|
|
2018-2022 CAGR
|
Smartwatches
|
|
43.6
|
|
32.8%
|
|
84.1
|
|
38.3%
|
|
17.9%
|
Basic Watches
|
|
32.4
|
|
24.4%
|
|
59.4
|
|
27.1%
|
|
16.4%
|
Basic Wristbands
|
|
47.7
|
|
35.9%
|
|
48.2
|
|
22.0%
|
|
0.3%
|
Earwear
|
|
2.8
|
|
2.1%
|
|
13.3
|
|
6.0%
|
|
48.0%
|
Clothing
|
|
4.1
|
|
3.1%
|
|
11.6
|
|
5.3%
|
|
30.0%
|
Other
|
|
2.4
|
|
1.8%
|
|
2.8
|
|
1.3%
|
|
3.8%
|
Total
|
|
132.9
|
|
100.0%
|
|
219.4
|
|
100.0%
|
|
13.4%
|
Source (News - Alert): IDC Worldwide Quarterly Wearable Device Tracker, March 20,
2018
|
|
* Note: All figures represent forecast data.
In addition to the table above, a graphic illustrating IDC's 2017-2022
forecast for worldwide shipments of basic and smart wearables is
available by viewing this
press release on IDC.com.
About IDC Trackers IDC
Tracker products provide accurate and timely market size, vendor
share, and forecasts for hundreds of technology markets from more than
100 countries around the globe. Using proprietary tools and research
processes, IDC's Trackers are updated on a semiannual, quarterly, and
monthly basis. Tracker results are delivered to clients in user-friendly
excel deliverables and on-line query tools.
For more information about IDC's Worldwide Quarterly Mobile Phone
Tracker, please contact Kathy Nagamine at 650-350-6423 or [email protected].
About IDC International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC's analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of International Data Group (IDG),
the world's leading media, data and marketing services company that
activates and engages the most influential technology buyers. To learn
more about IDC, please visit www.idc.com.
Follow IDC on Twitter (News - Alert) at @IDC
and LinkedIn.
All product and company names may be trademarks or registered trademarks
of their respective holders.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180320005096/en/
[ Back To Shaping Influence's Homepage ]
|