Wearables: Gartner says Market to Reach $84 bn by 2022

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Wearables: Gartner says Market to Reach $84 bn by 2022

Global shipments of wearables are forecast to increase by 25.8% year over year to $225 million (GBP 176.3 million) in 2019, according to the latest figures from Gartner. The research firm also predicted that that the end-user spending on wearable devices will reach to $42 billion (GBP 32.9 million) in 2019.

It has been estimated thNews 011218at 74 million smartwatches will be shipped in 2019 which will make them the top segment of all wearable device form factors, but as per Gartner, by 2022, ear-worn devices shipments will take over as the top wearables segment with 158 million units shipped compared with 115 million smartwatch shipments in 2022. Devices like Samsung’s IconX, Plantronics’ BackBeat FIT and Apple AirPods will account for more than 30% of all shipped wearables.
Angela McIntyre, research director at Gartner. Revenue, said that

smartwatches are on pace to achieve the greatest revenue potential among all wearables through 2021, reaching $17.4 billion, from smartwatches is bolstered by relatively stable average selling prices (ASPs) of Apple Watch.

The overall ASP of the smartwatch category will drop from $223.25 in 2017 to $214.99 in 2021 as higher volumes lead to slight reductions in manufacturing and component costs, but strong brands such as Apple and Fossil will keep pricing consistent with price bands of traditional watches,” she added.
Apple will continue to have the greatest market share of any smartwatch provider. However, as more providers enter the market, Apple’s market share will decrease from approximately a third in 2016 to a quarter in 2021. The announcement of a new Apple Watch expected in September may enable direct cellular connectivity for interacting with Siri, texting and transferring sensor data when the phone or Wi-Fi is not present. We expect other consumer electronics brands such as Asus, Huawei, LG, Samsung and Sony to sell only 15 percent of smartwatches in 2021, because their brands do not have as strong an appeal as lifestyle brands for personal technologies.
Two sub-categories that Gartner expects to perform well are kids’ smartwatches and traditional watch brands, which will emerge as significant segments for smartwatches. Gartner expects kids’ smartwatches to represent 30 percent of total smartwatch unit shipments in 2021. These devices are targeted at children in the two to 13 year-old range, before parents provide them with a smartphone.

The other sub-category, which will account for 25 percent of smartwatch units by 2021, is fashion and traditional watch brands.
Luxury and fashion watch brands will offer smartwatches in an attempt to attract younger customers,

said Ms. McIntyre. A final sub-category is represented by the startup and while-label brands (e.g., Archos, Cogito, Compal, Martian, Omate or Quanta), which will account for 5 percent of smartwatch unit sales in 2021.

Author: Tim Cole
Image Credit: Apple

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