Wearables Market Grew 5.5 Percent in 2Q18

Growth continued in the global wearables market during the second quarter of 2018 (2Q18) as shipment volume reached 27.9 million units, up 5.5% from the previous year, according to IDC. The market experienced similar gains in dollar value, growing 8.3% year-over-year to $4.8 billion in 2Q18 fueled by the continued popularity of smartwatches with their high price tags.

From a regional perspective, mature markets declined 6.3% year over year as these markets were largely comprised of basic wristbands last year, which have declined substantially since then and the growth in smartwatches has not been enough to offset the decline. Meanwhile, emerging markets grew 14% year over year as basic wristbands are still in high demand (due to the low price) and smartwatches also gained traction.

Apple maintained its position atop the wearables market with market-beating growth and continued demand for its LTE-enabled Watch. Xiaomi held the second position and has successfully diversified its product portfolio to include shoes, kid's watches, and multiple variants of the Mi Band, each priced at the low end of the market. The company also grew its brand awareness across Europe and the Middle.

Fitbit's decline continued as the company largely relied on sales of basic wristbands in the past and was not able to maintain pace during the second quarter. Huawei, like Xiaomi, has been heavily focused on the Chinese market though this is slowly changing as the company starts to experience growth outside its home turf. Garmin extended its lead over Samsung to maintain its position as the number five vendor worldwide and saw its shipment volume of smartwatches extend their lead over its basic wearables.