Tag Archives: Wearables Report

3 “mega secular trends” that will fuel the growth of wearables

The wearable technology market could reach 385 million people in a few years, analysts believe.

“Wearable technology will be the next generation of devices to transform how individuals consume and use information,” Piper Jaffray’s Erinn Murphy and Christof Fischer said in a recent note to clients.

In fact, there could be more people using wearable devices than there are people in the U.S. and Canada in a matter of just a few years. That’s because, Murphy and Fischer anticipate that the body tech space will grow from 21 million units last year to 150 million units in 2019 — representing a CAGR of 48%. This surge is expected to be driven primarily from smartwatches and fitness bands. Specifically, they predict that such bands will yield a CAGR of 31%, while smartwatches are projected to see an 82% rise.

As a whole, it is believed that the target market for wearables includes all consumers 15 years and older living in developed nations — which equates to roughly one billion people.

“We believe that tablet adoption is a good indicator of wearable adoption because tablets and wrist wearables do not generally require network contracts and are generally complementary to a computer or smartphone, respectively. For tablets, roughly 20% of the developed nation’s population has a tablet, according to our estimates. This would therefore point to a longer-term unit potential of 230 million units for the category. To be clear, we think this is still conservative given the more accessible price point of wearables (particularly in fitness bands),” the analysts wrote.

According to them, “We think adoption in the range of 20%-30% is more realistic which would point to a range of 230 milion-385 million unit potential for the category with time.”

The firm also noted three “mega secular trends” that will help spur growth in the relatively new market: ongoing health and fitness traction, the “quantified self” movement, and the convergence between brands and technology.

First, Murphy and Fischer pointed to a trend where health and wellness are “at the heart of consumer lifestyles” as global spending on fitness has surpassed $500 billion. Aside from that, trackers appeal to a much greater audience, as they fulfill the needs of individuals across nearly every demographic.

As for “the concept of incorporating technology into aspects of daily life,” wearables will enable users to better record and analyze their daily activity, while raising their awareness about how to adapt a personally healthier lifestyle. The engagement with these devices is coupled with growing online communities.

Last but not least, a vast number of brands are now taking large strides in increasing their engagement with consumers. Among those companies are the likes of Nike, Under Armor, Fossil, Ralph Lauren and Guess.

[h/t Business Insider]

Report: Wearable device shipments predicted to grow 173% this year

“Growth in the smart wearables market points to an emerging battleground among competing platforms.”

An estimated 72.1 million wearable devices are expected to ship this year, IDC researchers have revealed in their latest report. If that’s the case, the number would surge 173% from the 26.4 million wearables delivered back in 2014. Moving ahead, the firm forecasts a CAGR of 42.6% over the course of the next five years, bringing the total shipped in 2019 to 155.7 million.


According to the report, nearly four in 10 wearables are now priced under $100. However, IDC expects devices classified as “smart wearables,” which refers to those capable of running third-party apps, to take the lead in 2016. These include gadgets like the Apple Watch and Micosoft’s Hololens that are believed to open up endless opportunities for vendors, app developers and accessory makers.

“The demand for basic wearables, those that do not run third party apps, has been absolutely astounding,” said Jitesh Ubrani, IDC senior research analyst. “Vendors like Fitbit and Xiaomi have helped propel the market with their sub-$100 bands, and IDC expects this momentum will continue throughout 2015.”

While the demand for more basic wearable devices, such as watches, fitness bands and eyewear, may have gotten off to a slower start, the market has certainly matured over the past couple of months with a wider range of products and improved consumer adoption.


Though shipments for the so-called basic wearables came in at 22.1 million in 2014, this segment will also continue to grow with 39 million projected for this year and 66.3 million by 2019. Meanwhile, smart wearables — which only stood at 4.2 million in 2014 — will rise to an incredible 89.4 million throughout the five year period.

“Growth in the smart wearables market points to an emerging battleground among competing platforms,” added Ramon Llamas, IDC research manager. “Android Wear, Tizen, and WatchOS are moving ahead with improved user interfaces, user experiences, and applications. These will raise the expectations of what a smart wearable can do, and each platform is vying for best-in-class status. We’re not there yet, but we’re seeing the building blocks of what is to come.”

Report: Shipments of wearable devices triple as prices get lower

The wearable market recorded its eighth straight quarter of solid growth, according to a new report by IDC.

Even in the months leading up to the highly-anticipated release of the Apple Watch, the wearable space continued to show strong growth, IDC has confirmed. In its latest report, the research firm revealed that the worldwide market recorded its eighth consecutive quarter of steady maturation in the first quarter of 2015. During this three-month period, vendors shipped a total of 11.4 million devices — a 200% jump from the 3.8 million wearables shipped that time last year.


“Bucking the post-holiday decline normally associated with the first quarter is a strong sign for the wearables market,” IDC research manager Ramon Llamas said in the report. “It demonstrates growing end-user interest and the vendors’ ability to deliver a diversity of devices and experiences. In addition, demand from emerging markets is on the rise and vendors are eager to meet these new opportunities.”

The top five wearable vendors over the timespan included Fitbit, Xiaomi, Garmin, Samsung and Jawbone, in that order, each of whom have been able to collectively grow their dominance from two-thirds of the market in Q1 2014 to three-quarters Q1 2015. Fitbit’s extensive lineup of bands, such as the Charge, Surge and older Flex models, led the way by capturing just over a third (34.2%) of the space. Not far behind, Xiaomi made up about a quarter (24.6%), driven by the tremendous popularity of its Mi Band, primarily from China.

Meanwhile, Garmin’s health and fitness-focused devices, Samsung’s Gear smartwatches and Jawbone’s UP MOVE and continued demand of UP24 round out the list at 6.1%, 5.3% and 4.4%, respectively. Now with the Apple Watch in the equation, however, IDC expects that the wearables landscape will experience a seismic shift, one in which will “force the competition to up their game in order to stay on the leading edge of the market.”


Without question, helping to spur widespread adoption has been price erosion. As seen with many young forms of technology, gizmos and gadgets become much more affordable over time. In the case of wearables, more than 40% of devices are now priced under $100.

“Despite this price erosion, Apple’s entrance with a product priced at the high end of the spectrum will test consumers’ willingness to pay a premium for a brand or product that is the center of attention,” explained IDC research analyst Jitesh Ubrani.

Want to learn more? Download the entire report here.

Report: Smart clothing shipments to hit 10.2 million annually by 2020

Body sensor shipments will reach 3.1 million units annually by 2020, new report says.

In today’s Internet of Things (IoT) era, wearable technology will undoubtedly migrate from simple wrist-adorn devices to various biometric sensors embedded within our clothing. According to a new report from research firm Tractica, this change will take place over the next five years where more than 10 million items of smart clothing will be shipped annually. This increase will be driven by quantified self adoption, which includes the collection, measurement, tracking and analysis of body data to help wearers live healthier lives.

(Source: Polo Ralph Lauren)

(Source: Polo Ralph Lauren)

These latest figures follow in the footsteps of Garner’s recent study, which projects nearly 26 million e-textiles to be in use by 2016. This niche isn’t anything entirely new; in fact, athletes and avid sports enthusiasts have been using sensor-laden shirts, shorts, bras and socks for a little while now, all in an effort to acquire biometric information around muscle, breathing rate and heart activity. Over the next several years, the appearance of smart clothing is expected to change in appearance from high-tech athletic apparel to everyday street gear.

Meanwhile, the body sensor sector is also experience a transition as heart rate monitors decline in unit volume and newer devices like baby and pregnancy monitors, headbands, posture monitors and 3D trackers begin to build momentum. Tractica forecasts that shipments of embedded garments will jump from 140,000 units in 2013 to 10.2 million units by 2020, while body sensor shipments will decrease from 3.0 million units in 2013 to 1.2 million by 2017, before rising again to 3.1 million units in 2020.


“The ultimate wearable computer is a piece of smart clothing that one can wear as a garment or a body sensor that can track and measure specific vital signs,” says research director Aditya Kaul. “Both of these device categories are designed to seamlessly integrate with users’ daily lives.”

While we’ve already seen a number of major brands, ranging from Polo Ralph Lauren to adidas, take giant leaps into the smart clothing market, we can’t overlook the number of soft electronics DIY projects either. Inspired to create their very own e-textiles, Makers have already begun to embrace various easy-to-use wearable platform, including the Arduino Lilypad (ATmega328) and Adafruit’s FLORA (ATmega32U4), which can be easily daisy chained with various sensors for GPS, motion and light.

Want to learn more? You can find the entire Tractica report here.