Global shipments of wearable devices are expected to total 396 million units in 2020, a growth of 14.5 per cent from the 345.9 million units shipped in 2019, according to a forecast by International Data Corporation (IDC).
Shipment volume of wearable will have a five-year compound annual growth rate (CAGR) of 12.4 per cent and total 637.1 million units in 2024, according to the forecast.
The first half of 2020 delivered positive results despite the impact of COVID-19 on the global economy.
Even though vendors scaled down production and end users were quarantined, demand for wearables remained steady.
The market was propelled by near-record demand for hearables, which was enough to offset slightly lower demand for watches and wristbands.
The second half of 2020 is on pace to continue this trend and with the launch of new products—including hearables, watches, and wristbands—from multiple vendors, the wearables market is on track to reach nearly 400 million units this year, according to data from Worldwide Quarterly Wearable Device Tracker.
“Wearable devices and services will evolve together in the coming quarters,” Ramon Llamas, Research Director, Mobile Devices and AR/VR (augmented reality/virtual reality), at IDC, said in a statement.
Beyond devices, one trend to watch is the emergence of services to complement wearables.
Apple’s recently announced Fitness+, Amazon’s new Halo, and Fitbit’s Fitbit Premium connect users with health and fitness content - such as guided workouts, coaching, and diet advice—while incorporating data from their wearable device.
Several other companies are taking a different route, showing enterprise customers how to keep their employees physically distant and detect early signs of potential illness.
These services and others to come will increase the demand for wearables.
“Device makers are also laying the groundwork that will allow consumers to use multiple wearables in conjunction with each other,” said Jitesh Ubrani, Research Manager for IDC Mobile Device Trackers.
“Imagine tying positional and audio input from hearables with health metrics from the wrist to gauge a user’s level of attention or excitement in the surrounding environment. That’s a powerful new experience that can bring added utility to consumers and vendors alike.”
According to the report, hearables will account for the majority of shipments throughout the forecast while posting a market beating CAGR of 14.1 per cent.
Watches, comprising smartwatches and basic watches, will experience the highest CAGR at 14.3 per cent, said the forecast, adding that wristbands will slowly crawl upward with shipments growing at a CAGR of 2.4 per cent.