Major players in the smart watch market are Apple Inc., Garmin, Fitbit, Motorola, Sony Corporation, Samsung Electronics, LG Electronics, Huawei Technologies Co. Ltd., Fossil Group Inc, and Google Inc.
The smart watch market consists of sales of smart watches and related services that are used in medical, sports, gaming, and personal assistance. A smart watch is a computer-based wristwatch that provides many other features besides timekeeping. Examples include monitoring the heart rate, tracking the activity, and delivering day-round reminders.
The Global Smart Watch Market is expected to decline from USD 54.80 billion in 2019 and to USD 52.88 billion in 2020 at a compound annual growth rate (CAGR) of -3.51%. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and reach USD 84.90 billion in 2023 at CAGR of 17.10%.
North America was the largest region in the Smart watch market in 2019. Asia Pacific is expected to be the fastest growing region in the forecast period.
Internet of things (IoT) driven smart watches is highly preferred choice of smart watches. Smart watches connected to the internet offer a wide range of features such as time, health monitoring, and fitness tracking, receives calls and messages, entertainment, cardless payments, and connectivity to other IoT devices to improve the quality of the user’s life. With increasing consumer’s interests towards health and fitness, convenience in day to day activities and smart homes, wearable IoT devices such as smart watches offer various features. The global smart watch shipments rise by 42% annually from 10 million units in 2018 to 14.2 million units in 2019.
The smart watch market covered in this report is segmented by product into extension, standalone, classical and by application into personal assistance, wellness, healthcare, sports, others.
The high cost of smartwatches is expected to hamper the growth of the smartwatches market. The accuracy required for designing and development of various devices including sensors, display, and small-sized semiconductor equipment with a core diameter of 10 micro meters along with raw materials requires a high range of expertise and high initial costs. According to the IHS report, smartwatch shipments will hit 101 million units by 2020, up from 3.6 million units in 2014. Therefore, high cost smartwatches are expected to hinder the growth of the smartwatches market.
In November 2019, Alphabet Inc., the parent company of Google, acquired smart watch maker, Fitbit, Inc. for a deal amount of USD 2.1 billion. Alphabet said that the acquisition helps them in the advancement of its smart watch software, Wear OS. Fitbit, Inc. is an American company that makes fitness bands, smart watches, and accessories which helps in tracking footsteps, exercises, heart rate, and weight.
The increasing health awareness among consumers is a key factor driving the growth of the smartwatch market. Through a smartwatch, the user can take the necessary precautions in advance about health. The doctors can easily monitor the health status of patients remotely and can maintain, prescribe or treat them as required. For Example, the new Apple watch series 5 is capable of tracking heart rate, nervous system, emergency or inactivity warnings, and health events. According to the Rock Health 2019 study, the wearable use was around 33% for 2018 and 2019, while, the digital health tracking increased steadily from 38% in 2018 to 42% in 2019. Increasing number of people are using digital tools such as smartwatch to address critical health needs rather than just exercise tracking. Therefore, the increase in health awareness among the consumer is expected to drive the smartwatch market.
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Ankur Gupta, Head Marketing & Communications