Smartwatch Penetration to Reach 15% by 2019 as Use Cases Grow, NPD Reports
Close to 9 percent of U.S. consumers 18 and older owned a smartwatch as of June, said a Thursday NPD report predicting 15 percent penetration by 2019. More features and improved capabilities will differentiate smartwatches and contribute to sales growth…
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over the forecast period, with photo and video management and music and home automation control expected to become more prevalent. The highest use cases today are activity tracking, notifications and news updates, NPD said. “Rumors of the smartwatch’s demise have been greatly exaggerated,” said analyst Weston Henderek, who predicts accelerated growth vs. 2016 trends. Early growth projections for the smartwatch were “unrealistic,” said Henderek, saying 9 percent ownership is a “pretty healthy start” for a fledgling market. The next round of product upgrades will lead to more first-time purchases and upgrades for smartwatch owners, he said. Smartwatch penetration is 13 percent among millennials vs. under 9 percent for the overall market, and the market skews 60 percent male, NPD said. Smartwatch ownership is highest (34 percent) among the lowest income demographic, earning under $45,000 per year, it said. “While strong ownership in the lowest income category may seem counter intuitive, it is likely driven by a large number of buyers in the service industry who need a device to check incoming notifications when they can't reach for their phone,” said Henderek. Trends indicate “a natural evolution” of the smartwatch as a “home control hub on the wrist,” he said, and continued evolution of product capabilities will be key to “winning over consumers.” More than 5,000 U.S. consumers ages 18 and older participated in the survey.