Wearable tech market growth loses steam

’s new Watch will appeal to cardiac patients thanks to its approval from the FDA and AHA, and its refreshed watchOS5 provides reason for owners of older versions to upgrade, IDC says. — Reuters photo

KUCHING: The worldwide wearables market is forecast to ship 122.6 million units in 2018, up 6.2 per cent from the 115.4 million units shipped in 2017, according to the International Data Corporation (IDC) Worldwide Quarterly Wearable Device Tracker.

In a press statement, it explained that this wouldbe the first year of single digit year-over-year growth for the wearables market, mostly due to continuing softness among basic wearables (devices that do not run third-party applications).

However, it pointed out that double-digit growth is expected to return in 2019 and through the rest of the forecast as smartwatches and new form factors gain acceptance.

In 2022, IDC expected total shipment volumes will reach 190.4 million units, resulting in a compound annual growth rate (CAGR) of 11.6 per cent over the five-year forecast.

“The slowdown in the worldwide wearables market is a sign that this is a market in transition instead of a market in slowdown,” said Ramon T Llamas, research director for IDC’s Wearables team.

“Vendors are slowly moving beyond first-generation devices and experiences, bringing together an ecosystem of partners and applications for improved user experiences that reach beyond step counting.

“The wearables of tomorrow will play a more prominent role in communication, digital health care, home Internet of Things (IoT), and enterprise productivity that will make last year’s wearables look quaint.”

“The shift from basic wearables to smartwatches is well on its way,” said Jitesh Ubrani senior research analyst for IDC Mobile Device Trackers.

“With it, we anticipate far greater diversity in terms of design, feature set, brands, and most importantly, price points than ever before. Fitbit’s Versa was one of the first mass market smartwatches to target the sub-US$200 price band and in the next six to twelve months consumers can expect more options in the same or lower price tiers.

“Apart from smartwatches, we also expect growth from new products as kid’s brands, fashion brands, and sports brands begin to to hit the shelves,” added Ubrani.

“Although kids’ wearables have been a phenomenon in the Asia/ region, they are just beginning to emerge in Europe and Latin with the North American market to follow. Meanwhile, the third generation of WearOS watches are expected to make a small splash this holiday season and gain traction throughout 2019.”

Llamas noted: “Through all these changes there will still be an appetite for basic wearables.”

He added, “Wristbands will continue to play a significant role in the wearables market, offering simpler and less expensive solutions than their smartwatch counterparts. We also expect these devices will bring a more smartwatch-like experience to the table. Meanwhile, clothing and earwear will post market-beating growth with use cases that go well beyond their primary functions.”

IDC expected smartwatch volumes to reach a total of 46.2 million units shipped in 2018, up 38.9 per cent from the 33.3 million units shipped last year and by 2022, total volumes would grow at a CAGR of 19.5 per cent and reach 94.3 million units shipped, accounting for nearly half the entire wearables market.

In the near-term, it expected a boost from Fitbit’s entry in the market as well as a reinvigorated WearOS to spur volumes.

At the same time, it pointed out that Apple’s new Watch will appeal to cardiac patients thanks to its approval from the FDA and AHA, and its refreshed watchOS5 provides reason for owners of older versions to upgrade.

As for wristband volumes, it believed that the market would remain essentially flat as numerous vendors have exited in recent quarters and more would exit in the years to come.

Nevertheless, it highlighted that it would remain are best-of-breed devices that go beyond step counting and move towards being a health and fitness companion.

As for earwear tech, IDC pointed out that the market would grow the fastest among all the other wearables products on its list.

“In this category, we included those devices that feature a plus-one functionality beyond audio, and already earwear has expanded to include fitness tracking and coaching and real-time language translation, and in the coming years it should not be difficult to imagine a smart assistant tucked into a user’s ear,” it added.

What do you think of this story?
  • Angry (0%)
  • Nothing (0%)
  • Interesting (0%)
  • Great (0%)

Source: Borneo Post Online

Leave a Reply

Your email address will not be published. Required fields are marked as *

Time limit is exhausted. Please reload CAPTCHA.