Smartwatches are wearable computing devices that resemble wristwatch but come with added advanced features such as weather update, messaging, enable call making, connection to the internet, Bluetooth-enabled, GPS, and more. Moreover, it also offers an answering messages by voice and fitness tracking app.
The global smartwatches market was estimated to account for US$ 23,306.4 Mn in terms of value by the end of 2019.
Drivers:
Increasing usage of the internet and smartphone is primarily fueling the market growth of the smartwatches. Additionally, features such as ease of handling and use is another major factor propelling the market growth of the smartwatches. Growing youth population coupled with the rising popularity of these devices due to their advanced features is also expected to foster the market growth of the smartwatches over the forecast period.
Growing demand for extension smartwatches that are used as an extension of a smartphone or related devices is expected to propel the market growth. Incorporation of the advanced app such as tracking, alerts, and connectivity, which are compataible with extension smartwatches is again anticipated to foster the market growth of the smartwatches. Moreover, growth in the middle-class population is again expected to augment the market growth of the smartwatches.
Figure 1. Global Smartwatches Market Share (%) in terms of Value, By Region, in 2019
North America region dominated the global smartwatches market in 2019, accounting for 31.1% share in terms of value, followed by Europe and Asia Pacific respectively.
Market Restraints
The limited battery life of the smartwatches is a major factor restricting the adoption of smartwatches. Limited battery life affects the overall performance of the device, thereby hindering the market growth.
The high initial cost of the smartwatches is restricting their demand across low-income and middle-income populations. This is projected to negatively impact the market growth of the smartwatch.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2019 | Market Size in 2019: | US$ 23,306.4 Mn |
| Historical Data for: | 2017 to 2019 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 53.6% | 2027 Value Projection: | US$ 5,97,264.4 Mn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Pebble Technology Corporation, Samsung Electronics Co. Ltd., Nike Inc., Garmin Ltd., Sony Electronics Inc., Fitbit Inc., Martian Watches, ConnecteDevice Ltd. (COOKOO), and Apple Inc. |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Opportunities
Continuous product innovation by key players is projected to bring new market opportunities over the forecast period. For instance, in December 2019, Garmin has launched the Venu and Vivoactive 4 smartwatches in India. Venu smartwatch is the first watch from the company that will have an AMOLED screen. Both the smartwatches contain over 40 on-device animated workouts for strength training, cardio, yoga, and pilates.
A growing number of people participating in the sports activity due to increasing adoption of a healthy lifestyle is expected to offer lucrative opportunities for smartwatches. Moreover, the growing popularity of smartwatches among almost all age-groups is also expected to boost the adoption of these watches. Moreover, rising demand for cellular-connected wearable devices is further projected to foster the market growth of the smartwatches.
Figure 2. Global Smartwatches Market– Opportunity Analysis
Statistics:
Global smartwatches market was valued at US$ 23,306.4 Mn market in 2019 and is forecast to reach a value of US$ 5, 97,264.4 Mn by 2027 at a CAGR of 53.6% between 2015 and 2025.
Market Trends/Key Takeaways
The rising popularity of lightweight and stylish design smartwatches among consumers is encouraging manufacturers to introduce lightweight and durable smartwatch. For instance, in August 2019 Misfit has launched the Vapor X, it is the lightest and most efficient Wear OS smartwatch. The Vapor X has a 1.19-inch AMOLED display, and its 42mm case is built with a lightweight aluminum alloy that weighs in at 43 grams.
Increasing spending on R& D by the key manufacturer to develop next-generation smartwatches is one of the growing trends in the market. For instance, in December 2019, Oppo has announced that it is investing 7 billion dollars in research and development for developing smatwatches. With such a heavy amount of investment, the company also aims to develop core technologies in hardware, software, and system in addition to 5G/6G, Artificial Intelligence (AI), augmented reality (AR), Big Data, and other emerging technologies.
Figure 3. Global Smartwatches Market Share (%) in terms of Value, By Operating System, in 2019
On the basis of operating system in 2019, the android system has accounted the largest market share of 54.9% in terms of value, followed by others and watch OS (iOS) respectively.
Global Smartwatch Market - Impact of Coronavirus (Covid-19) Pandemic
Consumer electronics industry has a significant impact due to the sudden outbreak of COVID-19 pandemic, across the globe. The supermarkets, hypermarkets, and showrooms of leading brands have been shut from the past few months, thereby, affecting sales of various consumer electronics products. On the other hand, trends such as work from home has led to increase in demand for computers, laptops, and peripherals. Due to increase in demand for remote connectivity, sales of networking devices and connectivity hardware solutions has increased. Thereby, contributes to the growth of the market over the forecast period.
Value Chain Analysis (Description or image) - Optional
Competitive Section:
Company Names
Few Recent Developments
In November 2019, Fitbit announced several new software updates, bringing advancements to its popular smartwatches and Fitbit Premium membership service with the release of OS 4.1 for its smartwatches powers new sleep features and greater functionality.
Smartwatches are wearable computing devices that resemble wristwatch but come with added advanced features such as weather update, messaging, enable call making, connection to the internet, Bluetooth-enabled, GPS, and more. Moreover, it also offers an answering messages by voice and fitness tracking app. Apart from all these features, some of the smartwatches are also Bluetooth-enabled which allows it to connect it with a smartphone.
Market Dynamics
Increasing launch of design and gender bases smartwatches is projected to serve major market opportunities over the forecast period. Moreover, the growing demand for smartwatches that match the Metropolitan lifestyle is again projected to propel the market growth. For instance, in January 2020, Timex partners with Huami to introduce two Metropolitan smartwatches. The product is categorized as lifestyle-focused Metropolitan smartwatch collection and feature software that was developed in partnership with Huami. It has impressive high-resolution AMOLED touch display with vibrant colors that look bright under any ambient light condition. The watch has two weeks of battery life.
Increasing usage of the internet and smartphone is primarily fueling the market growth of the smartwatches. Additionally, features such as ease of handling and use is another major factor propelling the market growth of the smartwatches. Growing youth population coupled with the rising popularity of these devices due to their advanced features is also expected to foster the market growth of the smartwatches over the forecast period.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
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