Global shipments of wearable devices are forecast to hit 125.3 million units in 2018, up 8.5 percent from 2017, according to the International Data Corporation (IDC) Worldwide Quarterly Wearable Device Tracker. The growing popularity of smartwatches is driving the surge, the report says.
“The transition from basic wearables to smart wearables will continue over the next five years as the two approach parity in terms of market share by 2022,” said Jitesh Ubrani, senior research analyst for IDC’s Mobile Device Trackers in a statement.
“The rise of smart wearables will not just be in mature markets, but also from emerging markets in Asia/Pacific and elsewhere. Japan will play an equally important role as they consume more than one third of all smart wearables.”
The Research Triangle has a small cluster of wearables companies, including Valencell, which makes biometric senors included in many wearable products, Validic, which connects healthcare providers to patient information via wearables, and MVTRAK, which developed an in-ear head motion sensor revolutionizes head trauma risk management, among others.
According to the report, among the smart wearable operating systems, Apple’s WatchOS will remain in the lead although its share will decline from 44.4 percent in 2018 to 35.8 percent in 2022 as other platforms gain traction. The second largest OS is expected to be Android with 22.4 percent share in 2022.
Focus on convenience, actionable info
Behind WatchOS and Android, the report says WearOS will capture 19.8 percent share in 2022 as additional vendors begin to offer products and as the platform catches up to competitors in terms of features. The remainder of the smart wearables landscape will be comprised of smaller platforms and vendors although IDC anticipates Samsung, Fitbit, and Garmin to dominate with their proprietary platforms.
“Expect smartwatch operating systems to evolve along several vectors in the coming years,” said Ramon T. Llamas, research director for IDC’s Wearables team.
“First, smartwatches will focus on convenience by proactively providing glanceable and actionable information to the user.
“Second, smartwatches will provide new means of communication between users, and this is where cellular connectivity will play a significant role in its development.
“Third, smartwatch operating systems will emphasize connection, not only between users but between wearers and other smart devices and systems. Finally, expect further developments focusing on health with the smartwatch playing a critical role in tracking your health goals and detecting potential ailments.”
Other findings
Growth for the Wristband category will remain muted but will still account for 24.7 percent of the total market by 2022 with the total volume reaching 47,0 million. These wearable devices will continue acting as a stepping stone into the wearables market for first time buyers. In developed markets, the low cost of these products will also enable them to serve as simple patient monitoring tools.
Earwear, accounting for less than 2 percent of the market in 2018, is on track to capture 6.8 percent share in 2022. Growth in this category is largely attributed to the disappearance of the traditional headphone jack on modern computing devices. Additionally, an increasing number of vendors are including biometric tracking into wireless headphones which will further help this category.
