The meteoric rise in demand for wireless sports and fitness devices is widely considered as one of the major drivers for the growth of the smart watches market. Currently, the use of smart watches among cyclers, runners, gym-goers, swimmers, and athletes is increasing rapidly, owing to their wide range of monitoring capabilities. A smartwatch is a wrist-worn wearable device, and provides functionalities far beyond those of a traditional wristwatch. They are usually used as a companion device and need to be paired with a smartphone through Bluetooth and near-field communication (NFC) among other technologies.
Extension smartwatches have been contributing the highest revenue to the global market, with over 50% share in 2017. This can be majorly attributed to the introduction of next-generation smartwatches than can be used as an extension to smartphones or related devices. Besides, additional innovative applications such as tracking, alerts, and connectivity, which are compatible with extension smartwatches, have garnered consumer interest in recent years. This factor is expected to further increase the sales of smartwatch market, particularly in the middle- and upper-middle-class segments during the forecast period.
Popular highlights of the Smartwatch Market that are noteworthy are, based on type, the Extension Smartwatch sales was the source for approximately 4/5th of the revenue generated by the global Smartwatch market in 2013. Standalone smartwatch, which was nearly 1/10th of the market in 2013, would swiftly take over the extension smartwatch and would match with the market size of extension smartwatch by 2017.
North America and Europe accounted for approximately 60% of the overall market share in 2013. Higher purchasing power and awareness among users is expected to drive the regional industry over the next six years. Health and fitness are expected to remain the key smartwatch applications through the forecast period, which can be attributed to the increasing percentage of health-conscious consumers that need real-time tracking and feedback of their daily activities.
Some top players in smartwatch market are Samsung, Pebble, Maritime and Sony are counting on their R&D investments to be the prioritized strategy to increase respective market shares. An effective distribution channel is a key in defining the market status of a company. Samsung has significantly higher worldwide distribution strength compared to others and this adds to its competitive advantage. Key companies profiled in the report are Apple Inc., Google Inc., Garmin, Fitbit, Motorola, Sony Corp., and Samsung Electronics Co. Ltd.