Smartwatch (global market)

Wearable electronics

• Smartwatch (smartwatch)
• Medical Wearable Electronics (Global Market)
• Wearable Electronics (Global Market)

2022

Global Market Growth of 3% Amid Falling Wearable Electronics Sales

The volume of the global wearable electronics market in 2022 decreased by 5% in unit terms, while the demand for smart watches rose slightly. Such data are contained in a study by Canalys, the results of which were released on March 9, 2023.

Analysts say that suppliers of products of all categories have felt the impact of the difficult macroeconomic situation and the global crisis. Smart watches with basic and advanced functionality (such as the Apple Watch), as well as fitness bracelets, are taken into consideration.

In the fourth quarter of 2022, the total sales of wearable gadgets of various types amounted to about 50 million units. This is 18% less than the result for the last quarter of 2021, when deliveries were 61 million units. Thus, as Canalys notes, for the first time in the history of the development of the wearable device industry in the traditionally strong last quarter of the year, a double-digit reduction was recorded. This indicates that purchasing power has declined sharply amid inflation and market uncertainties.

For 2022, in general, 182.8 million wearable gadgets were shipped around the world against 193 million a year earlier. The Canalys study said demand for smartwatches with basic features rose year-on-year by 21% and for smartwatches with enhanced capabilities by 3%. At the same time, sales of fitness bracelets collapsed by 39%, which led to an overall reduction in the wearable electronics market by 5%.

The leader of the industry remains. Apple At the end of 2022, the company sold 41.4 million smartwatches, which is 5% more than in the previous year. Apple's share was 22.6% versus 20.4% in 2021. In second place is offering Xiaomi fitness trackers and watches with basic functionality: in 2022, the company shipped 17.1 million such gadgets - minus 41% on an annualized basis. As a result, Xiaomi took 9.3% of the industry. Closes the top three, Huawei in which supplies decreased by 21% - to 15.2 million units, and the share was 8.3%. In fourth position in the ranking is: Samsung during 2022, the South Korean manufacturer shipped 14 million wearable devices, which corresponds to 7.7% of the market. On an annualized basis, the company's deliveries decreased by 4%. Closes the top five, Google including the Pixel Watch smart watch: the company delivered 11.8 million wearable gadgets, taking 6.4% of the industry. At the same time, Google showed negative dynamics at 22%. All other brands together sold approximately 83.4 million wearable devices - 45.6% of the total: this is 10% more compared to the result for 2021.

The wearable gadget market will grow by a modest 2% in 2023. While we believe that demand for fitness trackers will continue to decline, watches with basic and enhanced functionality will show growth, but it will not exceed 10%. Manufacturers remain cautious and will focus on quality over quantity, given some recovery in consumer spending, said Canalys analyst Cynthia Chen.

In the future, wearable device developers will focus on developing the capabilities of operating systems for smartwatches. We are talking about the introduction of new features in terms of wireless data exchange and location tracking. It is assumed that the expansion of such tools will increase the attractiveness of smartwatches for consumers, and therefore developers will be able to increase their sales and increase revenue.^[1]

Market growth of 12%. Leaders

In 2022, the supply of smart watches on a global scale increased by 12% compared to 2021. Such data are provided in the Counterpoint Technology Market Research report, published on February 22, 2023.

Analysts say that demand for smartwatches showed positive dynamics during almost the entire 2022, but by the end of the year it had declined. This is due to high inflation, economic uncertainties and lower sales in India. Thus, at the end of 2022, negative dynamics was recorded for the first time since the beginning of the COVID-19 pandemic.

Dynamics of the share of major players in the smartwatch market

The report notes that one of the main trends in the smartwatch market in 2022 was the rethinking of consumer price preferences. Thus, shipments in the average price range decreased, and in segments more than $400 and less than $100 increased by 129% and 34%, respectively, compared to 2021.

Apple strongly influenced the growth of the average sale price (ASP) in the global smartwatch market in 2022, especially in the price range over $400. There are two main reasons for this ASP growth - the expanded Apple smartwatch family and currency changes. In 2022, Apple released its first premium Watch Ultra model at an initial price of $799. In addition, as the exchange rate increased, the local price of the Apple Watch changed in different countries. Demand for the premium segment remained relatively strong despite a decline in consumer sentiment at the end of 2022, said Counterpoint analyst Ujin Son.

Smartwatch Market Dynamics by Price Category

At the end of 2022, the share of smartwatches with a price of more than $400 amounted to 13% against 6% in the previous year. Devices worth $100 or less accounted for 35% of total sales, while in 2021 this figure was 29%. All other price segments recorded a year-on-year decline in sales.

If we consider the global market by brands, then Apple continues to lead it: at the end of 2022, the share of this company in unit terms reached 34.1% against 32.6% a year earlier. Samsung is in second place, the result of which has not changed over the year - 9.8%. Huawei, which is under severe US sanctions, closes the top three: this company's share in 2022 decreased to 6.7%, while a year earlier it was 7.4%. This is followed by the Indian brands Noise and Fire Bolt with a result of 5.6% and 5.5%, respectively: they strengthened their position thanks to good demand for smartwatches in the local market. In sixth place is Garmin with 4% of the industry. Then come Amazfit and Boat - 4% and 3.8%, respectively. Analysts emphasize that Fitbit and Xiaomi dropped to 10th and 11th positions in 2022, while a year earlier they were in 7th and 8th places.

From a geographical point of view, the North American region remains the largest, which accounted for 29% of sales against 30% in 2021 (in unit terms, an increase of 6% was noted). This is followed by India, which showed record growth - plus 151%: as a result, the share for the year increased from 9% to 21%. China closes the top three with 19% against 23% in 2021 (minus 9% in unit terms).

In terms of regions, North America again became the largest smartwatch market by the end of 2022, which also allowed it to remain in first place throughout the year. The region saw a significant increase in shipments, driven by Apple's strong performance. However, the share of North America has decreased slightly, since in 2022 India became another key region, the study notes.[2]

2021

Shares of the largest players in the smartwatch market

Data for 2021

Market growth by 23.8% to 127.5 million units

The volume of the global smartwatch market in 2021 reached 127.5 million units, an increase of 23.8% compared to 2020. Such data analysts Counterpoint Research released on March 3, 2022.

The Apple Watch accounted for about 30% of smartwatch sales, down 3 percentage points from a year earlier. The decline was due to the belated release of the Apple Watch Series 7, thanks to which Samsung Electronics managed to strengthen its position and increase its market share from 9% to 10% over the year. The South Korean manufacturer was also helped by the release of the Galaxy Watch 4 series.

Sales of Huawei smartwatches declined in 2021 and the share fell from 11% to 8%, the study said. This is largely due to the introduction of US sanctions against the company, which also negatively affected Huawei's position in the smartphone market.

Among operating systems, the smartwatch market continues to be dominated by low-level proprietary platforms that are being developed by certain manufacturers and that do not imply use in devices of other brands, analysts said. Watch OS remains the leading OS in the smartwatch market with a share of 30% at the end of 2021.

As noted in Counterpoint Research, the largest change in the field of operating systems for smartwatches in 2021 was the transition of Samsung from Tizen to Wear OS, as a result of which the share of this product developed by Google increased by 7 percentage points over the year, to 10%.

In terms of operating systems, the smartwatch market remains fragmented as many manufacturers use proprietary platforms or operating systems open source with RTOS. However, Counterpoint experts believe that the situation will gradually change, as support for third-party applications becomes more and more important for users.

The analytical report also said that the smartwatch market still has growth potential, and the largest sales of such gadgets are concentrated in developed regions such as North America and Europe. At the same time, China became the largest market for such watches for children, thanks to the Celestial Empire, it took second place in purchases of all types of smartwatches after North America.

In 2020, the Indian smartwatch market was comparable in size to the Latin American and the market of the Middle East and Africa. However, in 2021 India , there was a surge in demand for such devices (sales quadrupled), thanks to which the share of this country in the global turnover of smartwatches approached 10%.

Manufacturers are trying to make a big leap in smartwatch technology, analysts said. To stand out, they improve basic features such as user experience and battery life, create personalized user interfaces, and leverage appropriate ecosystems to identify new and unique use cases. But health control is the most common use of smartwatches. The ability to offer users advanced health monitoring functions and meaningful data and practical health information will highlight the winners and losers, the researchers are sure.

They believe it is important for manufacturers to invest in developing next-generation health monitoring sensors, as well as algorithms and solutions that not only track vital biomarkers, but also provide good indicators of accuracy and reliability. Vendors should focus on providing users with information on health trends using data collected over an extended period of time so they can understand how their lifestyle affects their well-being.^[3]

2020: Smartwatch shipments up 14.9% to 164.5 million

According to estimates by the analytical company IDC, in 2020, shipments of smartwatches on a global scale amounted to 164.5 million units, an increase of 14.9% compared to 2019. Such data were released in August 2021.

According to IDC, the leading five occupied the smartwatch market by 67.7%. More than one third of sales of this equipment in 2020 came from Apple. The balance of power among manufacturers is presented below.

Smart watch deliveries by the end of 2020 increased by 14.9%, to 164.5 million units

The analytical company Counterpoint Technology Market Research calculated that in 2020, shipments of smartwatches in the world increased by 1.5%. Apple has increased sales of smartwatches by 19% over the year, to 33.9 million units. Huawei showed a 26 percent increase - up to 11.1 million. The demand for Samsung chronometers fell by 1%, amounting to 9.1 million units.

According to analysts, Huawei helped stimulate the growth of the smartwatch market as a whole thanks to a tangible rise in product supplies, despite US sanctions. The Honor brand, which has split from Huawei, has also done well, with shipments doubling in 2020. Other Chinese manufacturers such as Amazfit and Xiaomi posted double-digit growth (up more than 10%).

Global Smartwatch Market Leaders

It is noted that smart wristwatches are most popular in price categories from $101 to $200 and from $401 to $500: such devices accounted for 22% of total sales.

The main engines of the smartwatch market are three premium brands: Apple, Samsung and Huawei, says Counterpoint senior analyst Sujong Lim. - We believe that the average check for devices will continue to grow over the next two to three years, as the flagship models of these companies continue to lead. On the other hand, Apple's success with its Watch SE model is likely to encourage other manufacturers, including Samsung, to release similar options as they approach the mass market. Over the course of three to four years, we will see budget segment players like Oppo and realme get a significant share, increasing overall competition and knocking down prices.

One of the catalysts for the smartwatch market is associated with the topic of health, which came to the fore in 2020 due to the COVID-19 coronavirus pandemic. According to experts, the key sensor of most smartwatches is a photopletismograph that reads the pulse, heart rate variability, and some watches, such as the Apple Watch, already have an ECG. Some models measure respiratory rate, saturation (blood oxygen saturation), pulse training areas, analyze daytime lifestyle and sleep quality, count steps and calories, track routes taken through GPS. All this is quite about time, because against the background of isolation, telemedicine is actively developing around the world: some smart devices can collect data on the patient's condition and send them to a doctor without visiting a clinic.^[4]

The report notes that several large players dominate the smartwatch market, but manufacturers from China and other countries are actively trying to compete with the leaders. Companies such as Nike, Casio, LG Electronics and Garmin are increasingly investing in the development and development of low-cost products equipped with advanced intelligent features that provide manufacturers with good profits.

The largest smartwatch market in 2020 was North America, which is facilitated by the presence of large manufacturers in this region and the development of innovative technologies there. Apple, Fitbit, Garmin and Fossil Group have headquarters in North America, which gives this region even higher importance for the market as a whole, the researchers note.

2019

Apple Watch sells more than all Swiss watches combined

In 2019, more Apple Watches were sold than watches from Swiss brands combined. Such data were published on February 5, 2020 in the analytical company Strategy Analytics.

According to experts, in 2019, Apple Watch sales on a global scale reached 30.7 million units, an increase of 36% compared to a year ago, equal to 22.5 million units. For comparison, Swiss companies, including Swatch, sold a total of 21.1 million hours at the end of 2019. This is 13% less than in 2018.

Apple has sold more watches than all Swiss watch brands

Analog wristwatches remain popular among older consumers, but younger buyers prefer smartwatches and computerized wristwatches, said Strategy Analytics chief executive Neil Mawston.

Swiss brands are losing a young audience that increasingly likes the Apple Watch, according to Strategy Analytics senior analyst Steven Waltzer.^[5]

Traditional Swiss watch brands such as Swatch and Tissot are losing the war on the smartwatch market. The Apple Watch is a better product that is distributed through broader retail channels and that attracts young people who increasingly prefer digital wrist items. Swiss brands remain increasingly less likely to make a statement in the smartwatch market. The time of Swatch, Tissot, TAG Heuer and others is leaving, "he said.

The expert linked the success of the Apple Watch to its attractive design, user-friendly technologies and applications.

Comparison of sales of Apple Watch and watches of Swiss brands, data from Strategy Analytics

Analysts estimate the global market for smart aces at 47.34 million units at the end of 2019. Sales of these electronics are expected to increase by an average of 14.5% annually and reach 117.51 million units by 2025.

58% of the market is held by Apple, Fossil, Fitbit and Samsung

On May 12, 2019, it became known that Juniper Research published its estimates of the smartwatch market. According to the company, the leaders - Apple, Fossil, Fitbit and Samsung - collectively occupy 58%, but by 2023 this figure will decrease to 47%. The reason will be the growth of smaller players such as Garmin, Zepp Health (formerly Huami) and Huawei. However, Apple will be the sole market leader in the next 4 years, and Huawei will demonstrate the highest average annual growth of 20%.

Smaller manufacturers will provide sales growth through a more targeted approach to choosing a niche in the market, targeting specific smartwatch use cases, and flexible pricing policies. Large players will continue to work in the premium segment, focusing on the full range of collection and analysis of indicators of daily activity, fitness and health.

If in the recent past wearable devices and smartwatches were more focused on tracking fitness indicators, then in the coming years the functions of tracking indicators that affect health - heart rate, pressure, etc. will come to the fore. The leaders in this direction will be Apple and Withings, and Fitbit and Garmin will play the role of catch-up.

The growth of smaller players will come primarily from the Chinese market, where sales will make smartwatches in the lower price segment. The Far Eastern region, which includes China, already overtook the North American market in 2018 - 25 million smartwatches sold against 19.5 million. By 2023, the gap will only increase, and sales in the Far Eastern region will triple.

As for the segment of hybrid smartwatches, its dynamics did not live up to hopes and turned out to be lower than expected. In 2018, hybrid smartwatches accounted for 22% of the market. The reason is their limited functionality compared to fully digital smartwatches, and the small players, due to which the market growth is ensured, focus on digital smartwatches - they are cheaper with more functions. Half of^[6].

2018

Up 41% to 31 million - Counterpoint Technology Market Research

In 2018, the global market volume "smart" watches amounted to about 31 million units, an increase of 41% compared to 2017 due to the activity of brands such as, Apple imoo, Fitbit and. Samsung This is evidenced by data from analysts at Counterpoint Technology Market Research, released on June 25, 2019.

In 2018, about 11.5 million copies of the Apple Watch were delivered, which is 22% higher than a year ago. Apple retained its leading position in the smartwatch market with a 37% share. In second place was the Imoo brand (10%), and Samsung closed the top 3 (9%).

Biggest smartwatch makers, data from Counterpoint Technology Market Research

Counterpoint analyst Satyajit Sinha explains Apple's absolute dominance with the company's emphasis on health-care features like ECG and user-drop detection.

In general, the segment of "smart" watches is going through a phase of evolution of cellular capabilities, which can make them truly autonomous wearable devices. Players such as Apple, imoo, Samsung, Huawei, Ticwatch and other children's watch makers were pioneers. Apple Watch and imoo cell smartwatches provided 13% and 10% of shipments, respectively, in 2018, Sinha said.

Apple Watch Series 4 became the most popular smartwatch in the world in 2018. The five best-selling models that accounted for sales included two more models from Apple.

Best-selling smartwatch in 2018, data from Counterpoint Technology Market Research

Although Samsung devices did not make the top 5, the company performed well in 2018, increasing shipments of smartwatches by 90%. Counterpoint senior analyst Sujong Lim says that in Samsung products, people are attracted to a rotating rim for navigating the interface and a traditional design for watches.

Huawei smartwatch shipments jumped 129% in 2018, thanks to the company "betting on its OS, spectacular design and availability," the study said.^[7]

Market growth of 54% to 45 million units - Strategy Analytics

In 2018, the global smartwatch market updated the record, and the Apple Watch accounted for half of sales. This is stated in a study released by Strategy Analytics on February 27, 2019.

For 2018, manufacturers delivered a total of 45 million smartwatches, which has never happened. Compared to 2017, shipments of gadgets jumped 54%.

The world's largest smartwatch manufacturers, data from Strategy Analytics

According to Strategy Analytics employee Steven Waltzer, sales of smartwatches are skyrocketing as "consumers want to complement their smartphones with accessories and have digital communications on their wrist."

Apple has released about 22.5 million computerized wristwatches in a year, more than the closest pursuers (Fitbit, Samsung and Garmin) combined. The leading four accounted for more than 81% of the supply of smart watches on a global scale at the end of 2018.

Strategy Analytics Chief Executive Neil Mawston says Apple Watch's market share is gradually declining as it is reclaimed by Samsung and Fitbit, which significantly improved their smartwatch range and retail presence in 2018.

"Smart" watches Fitbit Versa are becoming more populous, and the new medical platform of Fitbit Care has become a distinctive feature for the brand, "said Mouston.

According to the expert, Fitbit, Samsung and other companies are becoming more competitive in the category of watches for sports and listening to music, which negatively affects Garmin's performance.

As for Samsung, the company returned to second place in sales of smartwatches in the fourth quarter, but remained in third position in all of 2018. Stephen Walzer noted that the new Samsung Galaxy Watch models have proven popular in North America and Asia.^[8]

1981

Computers of the future? Cover of the April 1981 issue of Byte magazine, USA.

Notes