Wearable Electronics (Global Market)

Market segments

Smartwatch

• Smartwatch (smartwatch)
• Smartwatch (global market)

Fitness trackers

• Fitness trackers

Medical wearable electronics

• Medical Wearable Electronics (Global Market)
• Smart Patches (Global Market)

The healthcare industry uses wearable devices with built-in sensors that can measure environmental parameters, physical indicators of a person, and the level of his activity in real time. At the same time, they are connected to the network, as well as synchronized with a computer or smartphone. Such gadgets include mobile wearable ECG devices, watches with tonometers, fitness trackers, etc.

Smart clothing

• Smart clothing

Russian market

Main article: Wearable electronics (Russian market)

Europe Market

• Wearable Electronics (European Market)

Wearables in Logistics

• How the use of wearable devices changes the operation of logistics centers

2023

Sales of wearable AI electronics in the world rose to $63.5 billion

The global market for wearable devices with artificial intelligence functions in 2023 reached $63.5 billion. The most popular among consumers (in terms of total revenue) are smart wristwatches. This is stated in a study by Market Research Future, the results of which were released in mid-July 2024.

Analysts take into account sales of products such as smartwatches, fitness trackers, augmented (AR) and virtual (VR) reality headsets, smart headphones, wearable cameras, smart clothes, etc. Among the largest players in the market are named Apple, Samsung, Garmin, Fitbit, Xiaomi, Huawei, Google, Fossil Group, Amazfit and Sony.

It is noted that one of the drivers of the global industry of wearable gadgets with AI support was the COVID-19 pandemic, which provoked a sharp increase in demand for various devices for health monitoring and the organization of telemedicine services. In addition, wearable AI equipment is in demand to support remote work and remote interaction. Smart glasses and AR headsets are increasingly being used in industries such as manufacturing, healthcare and retail: these gadgets help boost productivity, speed up employee training and boost customer experience. Plus, the demand for AR/VR products in the fields of games and entertainment is growing.

According to Market Research Future estimates, in 2023, approximately 20% of the total revenue in the market under consideration, or $12.7 billion, fell on the smartwatch segment. Analysts associate the popularity of such gadgets with their versatility: the watch allows you to track the vital signs of the body, interact with an intellectual assistant, receive notifications, etc. At the same time, fitness trackers show the highest cumulative annual growth rate (CAGR) due to their focus on health.

The authors of the report divide all wearable devices with AI into two categories: with local and cloud data processing. The Group One gadgets generated higher revenue in 2023, it said, including through their ability to provide real-time information processing and personalized experiences without the need to connect to network services. On the other hand, by moving processing tasks to the cloud, wearables gain access to advanced AI algorithms, sophisticated machine learning models, and broad data analytics capabilities. This allows them to offer advanced features such as natural language processing, predictive analytics and personalized recommendations. At the same time, the load on the hardware component of the gadgets themselves is reduced.

From a geographical point of view, the largest market for wearable devices with AI functions in 2023 was. North America The region is characterized by a developed technological infrastructure, a strong presence of key industry players, as well as a high level of consumer awareness. In second place in terms of sales is, Europe followed by the Asia-Pacific region, which is experiencing the highest growth rates due to rapid urbanization and an increase in disposable income of the population. The development of the industry in this region is facilitated by large-scale production facilities and an expanding market. smartphones

Market Research Future analysts believe that in 2024 the volume of the global market for wearable electronics with AI will reach $74.3 billion. In the future, the CAGR is expected at 17%. As a result, in 2032, the costs in this area will amount to approximately $223 billion.^[1]

Sales growth 1.7% to 506.5 million units

Globally, wearable electronics sales rose by approximately 1.7% year-on-year in 2023, reaching 506.5 million units. This is stated in the IDC study, the results of which were published on March 20, 2024.

IDC statistics take into account shipments of smartwatches, fitness bracelets, smart glasses, various wearable audio devices (including fully wireless submersible headphones) and other gadgets. It is noted that, despite the improvement in economic conditions, there was a decline in mature markets such as the United States, Western Europe and Japan by the end of 2023. At the same time, in the Asia-Pacific region and in China, demand, on the contrary, has increased.

Shipments of wearable audio devices are estimated to have declined by 0.8% year-on-year in 2023; at the same time, they accounted for 61.3% of the total volume of the market under consideration. At the same time, in the segment of smart watches, deliveries increased by 8.7% year-on-year: there is a high demand for such devices in the Indian and Chinese markets. Smart rings, in particular, gadgets developed by Oura and Ultrahuman, showed significant growth: their sales in 2023 rose by 34.9% compared to 2022. And in the segment of smart glasses without a built-in display, an increase in shipments was recorded by 128.2% on an annualized basis - mainly due to the release of new products from Amazon and Meta (recognized as an extremist organization; activities on the territory of the Russian Federation are prohibited).

In 2024, according to IDC analysts, sales of wearable devices on the global market will increase by 10.5% compared to 2023, amounting to about 559.7 million units. The CAGR (compound percentage CAGR) is expected to be 3.6% through 2028, bringing the industry to 645.7 million units.^[2]

2022

The first market drop in history - IDC data 

In 2022, the supply of wearable devices on a global scale decreased by 7.7% compared to 2021. This was the first year of decline for the entire development of the industry. This is stated in the IDC report, published on March 7, 2023.

Products such as smartwatches, fitness trackers and headphones are taken into consideration. In 2022, the total shipments of these gadgets amounted to 492.1 million units against 533.4 million units in 2021. Analysts attribute the fall to difficult macroeconomic conditions, a crisis and high inflation. However, the recorded result significantly exceeds the indicators of 2020 and 2019.

The decline in demand for wearable devices is observed around the world, except for the Asia-Pacific region (excluding Japan and China - APeJC), as well as the Middle East and Africa (MEA). Sales remain relatively robust in emerging markets, which have not yet reached saturation and have not faced extreme inflation.

If we consider various categories of wearable gadgets, then the supply of smart watches increased by 9.4% in 2022, reaching a record level of 148.6 million units. At the same time, Apple remains the leader in this segment. Huawei and Samsung took second and third positions, respectively, and the Indian Nexxbase and Fire-Bolt were in fourth and fifth places due to high demand for their relatively inexpensive products in the local market. Sales of headphones, which are the largest category of wearable devices, are down nearly 10% from 2021. Shipments of fitness bracelets (the third largest category of wearable gadgets) in 2022 were reduced due to competition from smartwatches.

Given the tough economic situation, consumer demand has understandably declined. The availability of more affordable options in the product range can help suppliers stimulate demand in the coming quarters. In addition, trade-in programs, various payment schemes and subscription services will play a key role in maintaining profitability, "said Jitesh Ubrani, IDC Research Manager.

Apple topped the rating of leading players in the wearable device market in 2022 with 146.3 million gadgets shipped and a share of about 29.7%. However, the supply of this company compared to 2021 decreased by 9.6%. Samsung is in second place - 43.1 million devices sold and 8.8% of the market: on an annualized basis, deliveries decreased by 10.7%. Closes the top three Xiaomi with which sales collapsed by 35.9%: in 2022, this Chinese company sold 34.7 million devices, which made it possible to occupy 7.1% of the industry. In fourth place is Huawei - 33.3 million units and 6.8% of the market (minus 21.9% in supply). Closes the five Imagine Marketing, which was able to increase shipments by 9.3% - to 29.3 million units: this corresponds to a share of 6%. All other suppliers combined in 2022 sold 205.3 million wearable devices - 41.7% in total sales.

Over the past two years [in 2020-2021], there has been a rapid growth in the global market for wearable devices, and the decline in 2022 is what is happening against the background of meeting consumer demand. The positive side is that users will eventually start updating their gadgets, and this will return the market to growth. In this situation, companies with a wide range of products in different price categories, with different sets of functions and a developed accompanying ecosystem, will benefit, "said Ramon T. Llamas, IDC Director of Mobile and Industry Research AR/. VR[3]

Decrease in deliveries by 3.3%, to 515.6 million units

On December 21, 2022, IDC released the results of a study of the global wearable electronics market. Smart watches, fitness trackers, smart glasses, as well as headphones with additional smart functions and other products are taken into consideration.

According to estimates, in the third quarter of 2022, the industry showed an increase of 1.7% on an annualized basis. However, at the end of 2022, a drop in supplies was recorded at 3.3% - to 515.6 million units. This will be the first reduction since 2013. According to analysts, the observed picture is associated with two key factors. Firstly, the current macroeconomic situation had a negative impact on purchasing power. Secondly, this is the rapid growth of the market at the beginning of the pandemic, replaced by a slowdown in sales. Probably, the level of sales was also hit by a global shortage of electronic components, which affected many segments of the IT market - from computers and servers to consumer electronics and automotive systems.

The wearable gadget market has traditionally been dominated by brands such as Apple, Samsung, Huawei and Xiaomi. But the leadership of these companies began to be threatened by Indian suppliers. So, during the third quarter of 2022, three of the 10 leading companies producing wearable devices were from India. At the same time, Indian Imagine Marketing (BoAt) took second place after Apple as a global player. Other popular brands from India include Nexxbase (Noise) and Fire-Bolt. Moreover, in terms of growth, Indian suppliers of wearable gadgets are ahead of the rest of the world. In addition, smaller brands continue to target affordable products, resulting in lower average device cost (ASP) overall.

India is on track to become the second largest wearable market in quantitative terms, but will not yet be able to claim leadership in terms of revenue. This is certainly good news for premium brands like Apple Google and Samsung. On the other hand, the observed picture means tough competition for suppliers like Xiaomi and Huawei, "said Jitesh Ubrani, IDC research manager.

According to experts, improving economic conditions, as well as growing demand from emerging markets, will stimulate increased sales in 2023, with shipments of wearable devices projected to reach 539 million units. Within five years, the CAGR (compound percentage CAGR) is expected to be around 5.1%. As a result, by 2026, the volume of the global industry may increase to 628.3 million units.

Although the market will shrink in 2022, this is temporary. The industry will grow in the coming years due to product substitution, continued regional penetration and the availability of more devices with different feature sets across different price categories. This places the responsibility on suppliers to develop quality devices and solutions to attract and retain customers, analysts add.

IDC predicts that smartwatches, including those that run high-end operating systems, notably Apple Wear OS, as well as those based on real-time operating systems (RTOS), such as the Polar, Withings and OnePlus models, will demonstrate a CAGR of about 6.3% until 2026. At the same time, in the segment of headphones with additional smart functions, the average annual growth rate in complex percentages will be 5.1% over the same period.^[4]

2021: Global Wearable Electronics Market Size Jumps 20% - IDC

The volume of the global wearable market electronic engineers at the end of 2021 reached 533.6 million units, an increase of 20% compared to 2020. Analysts IDC published such data on March 9, 2022.

A significant contribution to the tangible growth in sales of wearable gadgets in 2021 was made by the fourth quarter, when manufacturers delivered a record number of such devices - 171 million units (+ 10.8% compared to the last three months of 2020). Experts attribute the rise of the market to the release of new products, as well as the continued high demand for headphones, fitness trackers and health control products.

Many companies in 2021 faced problems in terms of supplies, most of these difficulties began to disappear in the fourth, which allowed brands to ship record volumes of products when expanding the range, says Jitesh Ubrani, research manager at IDC Mobility and Consumer Device Trackers. - However, supply difficulties have led many manufacturers to think about services, and this fact is likely to play a key role in the development of the wearable market, as it will help vendors experiment with their business models and sell the device at a discount, compensating for its revenue from services.

Although Apple is leading the wearable electronics market with a big lead, a characteristic trend in 2021 was the strengthening of other brands. In particular, Samsung, Huawei and Imagine Marketing in 2021 registered higher growth rates than the market average. The situation is similar in the "others" subgroup, where deliveries increased by 26.3%. According to IDC analyst Ramon T. Llamas, this indicates a spread of demand to other companies and products, which encourages manufacturers to increase variety of assortment and reduce prices in order to attract and retain consumers.

Since demand from new users is still high, manufacturers can offer them features similar to those offered by Apple, but at much lower prices, the expert added.

At the end of 2021, Apple accounted for about 30% of the global wearable electronics market, which was facilitated by the release of the Apple Watch Series 7 line and AirPods 3 headphones. Xiaomi is still the leader in the fitness bracelet segment, with the Chinese company paying more and more attention to smartwatches and headphones.

Speaking of Samsung, analysts noted that at the end of 2021, the South Korean company conducted an active promotion campaign for its Galaxy Watch 4 Series line of watches. We are talking about discounts and trade-in programs (exchange of old devices in exchange for new ones with a surcharge). At the same time, the growth of Samsung's share in the headphone segment began to slow down.

Imagine Marketing was among the top five in the wearable electronics market thanks to rapid growth in sales of all its products in India. This was facilitated by low prices for gadgets with decent quality. The average price of this manufacturer's watches is well below $50, and this is one of the main reasons why the demand for fitness bracelets is fading, the researchers note.^[5]

2020

Wearable Electronics Market Growth by 37%, to 527 Million - Strategy Analytics

The volume of the global wearable electronics market in 2020 reached 527 million units, an increase of 37% compared to 2019, when the supply of such products was measured at 384 million units. This is evidenced by the data of the analytical company Strategy Analytics.

According to experts, annual shipments of wearable devices exceeded 0.5 billion for the first time. Most of the sales (about 62%) in 2020 fell on headphones - around the world they sold 327 million units, which is 61% higher than a year ago. The second largest category with a 36% share was wrist gadgets (primarily smart watches and fitness bracelets), the sale of which rose by 11%, to 188 million pieces.

Strategy Analytics analyst Ville Ukonaho noted that 98% of the total was occupied by smart headphones and gadgets worn on the wrist. According to the specialist, these two categories continue to move the wearable market forward, and this trend is likely to continue.

Also in 2020, 12 million wearable devices belonging to other categories were sold, which is about 2% of the total result.

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According to Neil Mawston, director of Strategy Analytics, if the growth rate of wearable electronics in 2020 continues, then by the end of this decade global sales of wearable devices will exceed 2 billion and outstrip smartphones in terms of sales. The expert called the huge potential of wearable electronics, noting that such devices can be located on any part of the user's body - from the head to the toes. As an example, he cited augmented reality smart glasses, smart rings with built-in biosensors and smart sneakers with pollution level sensors.

According to CCS Insight researchers, in 2020 sales of smartwatches and fitness bracelets in physical terms increased by 22% and reached 193 million units. In money, the market volume was close to $24 billion (experts did not specify the dynamics in dollars).

CCS Insight stressed that such an impressive rise in the context of the COVID-19 coronavirus pandemic was not observed in all product categories. For example, sales of mobile phones in 2020 fell by 13% amid weakened demand.

According to analysts, smart watches occupied about 60% of total sales of wearable devices at the end of 2020, and less expensive fitness bracelets accounted for about 40%. The most popular among smartwatch buyers were Apple, Samsung, Garmin, Fitbit and Amazfit.

Although Apple Watch smartwatches continue to be in high demand and their sales are increasing, analysts say the next round of growth in the market under consideration Androidsmartphones will be provided by owners who have not yet had time to acquire wearable gadgets.

Apple is already weakening its position, as can be seen from the trajectory of the market share: the indicator, which reached 55% in 2019, fell to 47% in 2020.

Among other noteworthy trends, experts also mentioned a return to the growth of the segment of children's smartwatches after the fall in demand for them during the pandemic, when children switched to distance learning. It is expected that in 2021 their sales will increase by almost a third and reach 28 million units. More than 90% of this volume will be in the Chinese market.

Experts add that wearable devices and services will develop in parallel. Wearable electronics are ideal for collecting user data, and with the help of services, gadget owners will be able to receive recommendations and useful advice, the study said.^[6]

Market growth by 28.4% to 444.7 million units. Largest producers

Deliveries of wearable electronics on a global scale at the end of 2020 amounted to 444.7 million units, which is 28.4% more compared to the previous year. Such data are provided by IDC analysts.

They linked the rise of the market in question to a surge in consumer spending on electronics amid the COVID-19 coronavirus pandemic. In addition, sales and the release of new products by the end of 2020 had a positive impact.

Not only spending changes, new products and a seasonal factor have benefited the market, but also a pandemic that has put health and fitness first in the minds of many people, "comments IDC analyst Jitesh Ubrani on the study. - Home fitness programs are rapidly becoming an important component of wearable electronics projects for many companies. In addition, the rapid proliferation of health sensors, which, among other things, monitor body temperature, ECG and heart rate, allows users and medical professionals to better understand how diseases begin and proceed.

This trend did not help all segments of the wearable electronics market - some of them were in decline due to a shortage of chips. Thus, sales of bracelets decreased by 17.8% on an annualized basis and occupied only 11.5% in the total volume of the wearable device market. The largest category remains headphones (they accounted for 64.2% of wearable electronics sales), the second place was taken by smartwatches (24.1%).

Ramon Llamas, director of research for the wearable electronics market at IDC, called 2020 the year when headphones became mandatory devices. They provided a "new level of privacy," especially during home quarantine and when in public places.

The competitive landscape in the headphone market has been constantly changing in 2020: some companies have gradually gained a foothold in the market (Amazon and its Echo Buds and Frames models), others have introduced new form factors (Apple and its AirPods Max), and still others have offered new features at a reduced price, such as automatic noise cancellation and voice control, he said.

Apple, which is leading in the wearable electronics market by the end of 2020, took it by 34.1% due to a 36% increase in product shipments. Following Xiaomi, the market share lags behind the leader three times - the indicator of the Chinese company analysts IDC was estimated at 11.4%. Huawei rose to the top 3 vendors, recording 9.8% of the supply of wearable electronics against 9% of Samsung. The latter in 2019 was in the top three.

The researchers linked Apple's strengthening position in the industry to the attractiveness of smartwatches of three models with different prices Apple Watch Series 6, Apple Watch SE, Apple Series 3, which are in different price categories. The company also has increased sales of headphones, but the dynamics are declining due to the fact that the user base of AirPods is becoming huge, and further growth is limited.

Analysts call headphones a catalyst for Samsung's growth in the wearable electronics market. Also, the South Korean giant sells bracelets well, which were able to compete with the products of Chinese vendors in some markets. However, bracelets account for only 15% of Samsung's wearable shipments.

IDC notes that Xiaomi has a good chance of strengthening due to Huawei's decline outside the PRC, as well as business growth in the EMEA region, where Xiaomi's telephone business is on the rise.

Huawei is increasingly difficult to do business under American sanctions. Under these conditions, the company decided to pay more attention not to fitness bracelets, but to smart watches, which have a higher price.^[7]

Wearable electronics market grows 50% due to coronavirus - Gartner

The volume of the global wearable market electronic engineers in 2020 grew by about 50%, which was largely facilitated by the coronavirus pandemic. COVID-19 This is reported by analysts. Gartner

According to their estimates, in 2020, sales of smartwatches, fitness bracelets, headphones, smart clothes, virtual reality devices and other wearable gadgets on a global scale reached $68.99 billion against $46.19 billion.

Experts say people have become more likely to work from home and more interested in means to control their health, hence the growth of the wearable electronics market. The implementation of the so-called "smart stickers" (thermometers, pulsometers and other physical indicators that are glued to the skin) at the end of 2020 reached $4.69 billion, while a year earlier the figure was measured at $3.9 billion.

The introduction of medical measures to independently track the symptoms of COVID-19, along with the growing consumer interest in personal health and well-being during global restrictions, has provided significant opportunities for the wearable device market, said Ranjit Atwal, senior research director at Gartner.

According to him, "smart stickers" have existed for a long time, but their implementation until 2020 was slow for two main reasons: firstly, users and medical workers were reluctant to switch to tools for automatic administration of the drug, and, secondly, the development of this segment was hindered by strict legislative norms in the United States and other countries.

The transition to electronic healthcare, especially during COVID-19, will change users' understanding of automated health control and increase the demand for smart stickers, the expert is sure.

Global sales of headphones in 2020 increased by more than 2.2 times and reached $32.7 billion. This rise is due to the massive transition of people to remote work, as a result of which employees are more likely to buy headphones for video conferencing. Consumers have actively purchased headphones for smartphones in order to entertain and communicate with friends and family by phone, the study said.

Smartwatch purchases in 2020 increased by 17.6% to $21.8 billion, which was largely facilitated by the emergence of new products in this category. In 2021, positive dynamics in the smartwatch segment should continue due to the emergence of new processors and improved batteries, which provide long battery life and fast recharging.

According to Gartner experts, one of the drivers of the wearable electronics market was the development of innovations there and the emergence of miniature functional devices. The accuracy of sensors is increasing, and non-medical gadgets are approaching medical devices in their effectiveness, which stimulates sales of various categories of wearable electronics.

In addition, sales of such devices will spur a category of people who would not like to draw attention to their disease and the devices they are forced to wear.

IDC analysts estimate the growth of the global wearable electronics market in 2020 at 14% in natural terms. Shipments of devices, including smart headphones, smartwatches and fitness bracelets, reached 396 million units, while in 2019 they were at the level of 345.9 million.

IDC Director Ramon Llamas says wearable devices and services will develop in parallel. Wearable electronics are ideal for collecting user data, and with the help of services, gadget owners will be able to receive recommendations and useful advice.^[8]

2019

Market growth of 89% to 336.5 million units - IDC

The volume of the global wearable electronics market in 2019 reached a record 336.5 million units, an increase of 89% compared to 2018. There was one change in the top three manufacturers - Samsung climbed to third place, according to IDC analysts.

The leader in the market of wearable gadgets remained, Apple which in 2019 increased the supply of such products by 121.7%, and the share - up to 31.7%. The company's rise was ensured by the sale of restored headphones AirPods and new AirPods Pro, smartwatches Apple Watch and branded audio solutions. Beats

Xiaomi remained in second place in the ranking, and Samsung climbed to third due to the high demand for Galaxy Active and Active 2 smartwatches, which expanded the client base of the South Korean giant: if earlier people bought Samsung watches mainly to use common functions, now they are driven by the desire to play sports and fitness.

Another driver of Samsung's growth has been the strategy of selling its wearable devices bundled with smartphones. In addition, the company's performance is improving due to the controlled brands JBL, Infinity and others, the study says.

In 2018, Fitbit ranked third on the list of the world's largest manufacturers of wearable electronics, and a year later it dropped to fifth place. At the same time, the company managed to increase the supply of devices by 14.8%. Fitbit has returned to growth after two years of decline. Most of the vendor's revenues are still related to fitness trackers, but Fitbit also has growing sales of smartwatches - in 2019 they reached 6 million thanks to the release of inexpensive models Versa 2, Versa Lite and Ionic.

Despite political pressure, Huawei has increased shipments of wearable devices by 148.8% in 2019. Bracelets accounted for the overwhelming share of electronics supplies from the company, but sales of smart watches, including products for children, grew the fastest. Huawei has also added several smart wireless headphone models to her range to keep up with the competition.

According to IDC, the highest growth rate in the wearable electronics market in 2019 was demonstrated by the hearables segment. It includes wireless stereo headphones with smart capabilities such as physical activity/health tracking, voice control support, built-in translator from foreign languages, or additional audio functions, along with noise cancellation.

In 2019, shipments of gadgets in the hearables class jumped by more than 250% and amounted to 170 million units. The top three fastest growing categories included smart bracelets (+ 37.4%; in 2019, they were produced in the amount of 69.4 million units) and smart watches (+ 22.7%; 92.4 million units).

2019 was a significant step forward for the global wearable electronics market, says IDC analyst Ramon Llamas. - Important news was circulating around Hearables thanks to new products and an increase in the number of smartphones with support only for wireless headphones, which in practice pushed users to buy hearables devices.

According to IDC Mobile Device Trackers research manager Jitesh Ubrani, the global wearable electronics market is becoming more consolidated in the hands of major manufacturers as Apple and Samsung increase their stakes. Although these giants put pressure on other market participants, small manufacturers still offer many innovations and differences, and this situation should continue in the foreseeable future, the expert said.^[9]

Portable audio sales are changing

Wholesale sales of MP3 players in the U.S. fell from $2.93 billion dollars in 2013 to $0.77 in 2018, according to the Consumer Technology Association. However, demand for headphones increased and wholesale sales tripled between 2013 and 2018.

2018

Supply growth by 27.5% to 172.2 million units - IDC

IDC analysts counted 172.2 million wearables delivered to the global market in 2018. This is 27.5% more than in 2017. Such data are provided in the study, excerpts from which were published on March 5, 2019.

The key catalyst for the growth of the market in question was gadgets worn in the ears. These experts include headphones with various "smart" functions, as well as wireless headphones with support for digital assistants, which are launched when a button is pressed or by voice command (for example, Apple AirPods, Google Pixel Buds, Bose QC35II).

The market for ear-worn devices grew significantly last year, and we expect this to continue in subsequent years, says Jitesh Ubrani, senior analyst at IDC Mobile Device Trackers. - This is another battlefield for companies, as these types of headphones are becoming a necessity for many, given the exclusion of headphone jacks from modern devices.

At the same time, the largest segment of the wearable electronics market remains smart watches, shipments of which in 2018 rose by 54.3% and amounted to 29.8% in the total market volume. In this segment, as noted by IDC analyst Ramon Llamas, Apple leads with a share of about 50%. It is followed by a large group of companies that increased sales of smartwatches at two- and three-digit rates in 2018. As a result of this trend, many devices appeared on the market in different price categories, among which users can choose devices that suit themselves, the expert added.

Apple also ranks first in the entire global wearable electronics market. The company's share at the end of 2018 amounted to 26.8%, which is twice as much as the nearest pursuer - the Chinese Xiaomi. In the leading five, Samsung showed the best dynamics, which increased the supply of wearable devices by 85.1%.^[10]

Market Size of 178.91 Million - Gartner

At the end of November 2018, the analytical company Gartner published some results of research on the global wearable device market. Deliveries of these gadgets at the end of 2018 will amount to 178.91 million units against 140.82 million a year earlier.

Experts call the largest segment of the market under consideration "smart" watches, shipments of which on a global scale will reach 53 million units or 30% in total sales of wearable electronics. In 2017, the indicator was measured at 41.5 million.

The production of electronic bracelets will increase from 36 to 38.97 million units, and the volume of the segment of gadgets worn on the ears will rise from 21.49 to 33.44 million units.

The next largest category of wearable electronics are virtual and augmented reality helmets and glasses. In 2018, about 28.4 million such devices will be sold, while a year ago 19.08 million copies were sold. Smart clothing will account for just over 3% of the market or 5.65 million units at the end of 2018, according to preliminary data from Gartner.

Apple Watch prices remain consistently high in 2018, according to Gartner analyst Alan Antin. However, the average selling value of smartwatches will decrease - from $222 in 2018 to $210 in 2022 - due to the growing number of cheap products, the expert predicts.

According to him, as sales volumes increase, production costs and costs of components decrease, but strong brands like Apple and well-known manufacturers of traditional watches try to maintain prices at a high level.

Gartner has four types of smartwatch manufacturers:

• leading brands in the consumer electronics market;
• developers of fashionable and traditional watches;
• suppliers of children's models;
• startups and manufacturers of specialized devices operating in the niche segment.^[11]

2017

Apple takes the lead - IDC

In 2017, global shipments of wearable electronics updated the record, and thanks to the popularity of smartwatches, [[Apple] broke into the market leaders, ahead of competitors Fitbit and Xiaomi. This was reported in a fresh report by IDC analysts, published on March 1, 2018.

According to experts, in 2017, manufacturers released a total of 115.4 million wearable devices, which is 10.3% more than in 2016, when shipments were within 104.6 million units. At the same time, experts drew attention to the decline in growth rates.

The annual rise of 10.3% in 2017 is a significant slowdown compared to the increase of 27.3% recorded in 2016. However, the trend is by no means associated with a decrease in interest. The decline was a result of the fact that many vendors who relied on older versions of devices eventually had to leave the market. At the same time, the remaining players, including numerous startups, not only successfully replaced the departed, but also with the help of their new products contributed to the closer introduction of wearable electronics into people's daily lives. The next generation of wearable devices will be even more advanced, and compared to it, the gadgets of 2016 will seem ridiculous and primitive, "comments IDC analyst Ramon Llamas.

The specialist also added that Apple quickly came out on top of the rating of wearable electronics manufacturers.

Interest in smartwatches continues to increase, and Apple is well positioned to take advantage of the growing demand. Over the past few quarters, consumers have become more sophisticated, and Apple has turned the demand for cellular functions and streaming services for multimedia content into its favor, "said Llamas.

According to the results of 2017, analysts estimated the shipments and market share of Apple Watch at 17.7 million and 15.3%, respectively. The closest pursuers of Xiaomi and Fitbit lagged behind by about 2 million devices and finished with results of 13.6% and 13.3%.^[12]

Up 10% to 113.2 million - IDC data

On December 20, 2017, IDC analysts published a study according to which global annual shipments of wearable electronics will grow by more than 10%.

According to experts, in 2017, manufacturers will release a total of 113.2 million gadgets intended for wearing on the body, against 102.4 million pieces a year earlier. Until 2021, the market will grow at an average of 18.4% per year.

The largest segment of analysts is called fitness trackers, whose shipments in 2017 are expected at 45 million units, which will correspond to almost 40% of the market.

The second place in terms of shipments (31.6 million units) will be occupied by smart watches such as the Apple Watch. Experts attribute the growth of this product category to the advent of cellular support in many devices, the release of devices from fashion brands and the expansion of the functionality of children's electronic devices. If previously the latter were used mainly for location tracking, now they allow children to play games, launch applications and communicate with friends.

According to IDC analyst Ramon Llamas, all wearable electronics will become more multifunctional in the future and will be able not only to monitor physical activity and health indicators, but also to provide communication and increase productivity.

The study says 29.9m hybrid watches will be launched in 2017, combining the capabilities of traditional wristwatches and computerised features. According to the researchers, the volume of this segment will grow due to the unique customer base and a wide distribution network that fashion brands have.

Analysts expect 2.4 million copies of smart clothing and 1.7 million smart headphones at the end of 2017. The latter among all segments will show the highest annual sales growth until 2021 - by almost 60%.^[13]

The volume of the segment of data analysis from wearable electronics in $247 million

In 2017, services for analyzing data from wearable electronics will bring about $247 million, and by 2022 the volume of this market in money will reach $838 million. This forecast was made on December 19, 2017 at the analytical company ABI Research.

Traditional wearable devices, such as fitness bracelets, collect a variety of information about the user - measure the pulse throughout the day, count the number of steps taken, etc. Analyzing this data with specialized applications allows users to receive physical activity recommendations and proactive alerts.

In the near future, experts expect an increase in the popularity of services for analyzing data from wearable electronics: revenue from them from 2017 to 2022 will increase on average by more than 27%.

Experts see many scenarios for using data from wearable electronics. For example, in health care, analyzing information received from a large number of patients allows you to warn doctors in advance about which of the patients may need urgent assistance. For consumers, company employees and athletes, analyzing data from wearable gadgets makes it possible to assess their fitness and activity, which, in turn, allows you to improve results. Analytics helps business leaders understand workflows and how to improve productivity. The application is even in the legal sphere: the analysis of the physical activity of the plaintiff after the injury allows you to assess the severity of the harm caused to the victim.

Among the companies that already provide this kind of analytical services, experts listed Catapult Sports, Emu Analytics, Sentrian and Vivametrica. ABI also noted that the manufacturers of wearable electronics themselves are also engaged in the analysis of the collected data.^[14]

2016: New Record - IDC Data

On March 2, 2017, the analytical company IDC presented some results of a study of the global wearable electronics market. Sales of these devices were record-breaking thanks to the entry into the market of new manufacturers and the renewal of the assortment by current players.

In 2016, 102.4 million gadgets intended for wearing on the body were released worldwide, which is 25% more than in 2015.

Like any technology sector, the wearable electronics market is undergoing changes, says IDC analyst Ramon Llamas. - Basic devices, which were originally used only to count steps, are transformed into multifunctional wearable devices, combining medical and fitness capabilities with notifications in smartphones. This is enough to blur the boundaries between most smart devices to a level where the first generation of smartwatches were no better than many modern fitness trackers.

The study notes that the wearable electronics market developed beyond traditional wrist-worn gadgets in 2016. For example, ear devices and smart clothes with sensors took 1% of the total supplies on the market. Although these shares are very small, they may portend the development of these niche segments by well-known vendors in 2017.

The five largest manufacturers of wearable electronics in 2016 have not changed. Fitbit remained the leader, although the company's share declined from 26.8% to 22%. Xiaomi was in second place (15.4%), Apple was in third (10.5%). Next are Garmin and Samsung Electronics with figures of 5.9% and 4.3%, respectively.

The rest of the manufacturers, as the researchers note, are newcomers. Among them, IDC pays attention to Fossil with its sub-brands, BBK and Li-Ning.^[15]

Notes