Wearables, After Slowing Growth in 2018, Will Revive on Smartwatches, Says IDC
Shipment growth in the worldwide wearables market will slow to 6.2 percent this year, the category’s first single-digit growth year, due to softness in basic wearables, said a Thursday IDC report. The forecast calls for double-digit growth to return in…
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2019 through 2022 as smartwatches and new form factors gain acceptance. Shipments are forecast to reach 122.6 million this year vs. 115.4 million in 2017, and 190.4 million in 2022. The slowdown is a sign of a “market in transition,” said analyst Ramon Llamas, saying vendors are “slowly moving beyond first-generation devices and experiences" as they combine devices, partners and applications in ecosystems to create experiences that will make early devices “look quaint.” Analyst Jitesh Ubrani said the shift from basic wearables that don’t run third-party apps to smartwatches “is well on its way,” and IDC expects greater diversity in design, feature set, brands and price. Fitbit’s Versa was one of the first mass-market smartwatches to target the sub-$200 price band and more options will hit the market in the next six to 12 months in the same or lower price tiers, he said. IDC sees growth coming from kids', fashion and sports brand wearables. Kids’ wearables, a phenomenon in the Asia/Pacific region, are becoming popular in Europe and Latin America, with the North American market to follow, said Ubrani. Meanwhile, third-generation WearOS watches are expected to make a “small splash” in Q4 and gain traction throughout 2019, said Llamas. Wrist-worn basic wearables will continue to play a “significant role” in the market, offering simpler and less expensive solutions than smartwatches while taking on a more smartwatch-like experience, Llamas said. Clothing and earwear will post “market-beating growth” with use cases that go beyond their primary functions, he said. Smartwatch shipments will reach 46.2 million this year, up 39 percent from last year, growing to 94.3 million by 2022, IDC said. Apple’s fourth-gen Watch will appeal to cardiac patients, said the researcher, due to FDA and American Heart Association approvals. Earwear, which includes devices that add functionality beyond audio, will grow the fastest among other wearables IDC tracks, it said. The category has expanded to include fitness tracking, coaching and real-time language translation. In coming years, it said, “it should not be difficult to imagine a smart assistant tucked into a user’s ear.”