Worldwide Wearables Market to Nearly Double by 2021

Worldwide Wearables Market to Nearly Double by 2021
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As the wearables market transforms, total shipment volumes are expected to maintain their forward momentum. According to data from the IDC Worldwide Quarterly Wearable Device Tracker, vendors will ship a total of 125.5 million wearable devices this year, marking a 20.4% increase from the 104.3 million units shipped in 2016. From there, the wearables market will nearly double before reaching a total of 240.1 million units shipped in 2021, resulting in a five-year CAGR of 18.2%.

IDC anticipates that watches will account for the majority of all wearable devices shipped during the forecast period. However, a closer look shows that basic watches (devices that do not run third party applications, including hybrid watches, fitness/GPS watches, and most kid watches) will continue out-shipping smart watches (devices capable of running third party applications, like Apple Watch, Samsung Gear, and all Android Wear devices), as numerous traditional watch makers shift more resources to building hybrid watches, creating a greater TAM each year. Smart watches, however, will see a boost in volumes in 2019 as cellular connectivity becomes more prevalent on the market.

Once the overall leaders of the wearables market, wristbands will see slowing growth in the years ahead. The sudden softness in the wristband market witnessed at the end of 2016 will carry into subsequent quarters and year, but the market will be propped up with low-cost devices with good enough features for the mass market. In addition, users will transition to watches for additional utility and multi-purpose use.

The smart clothing market took a strong step forward, thanks to numerous vendors in China providing shirts, belts, shoes, socks, and other connected apparel. While consumers have yet to fully embrace connected clothing, professional athletes and organizations have warmed to their usage to improve player performance. The upcoming release of Google and Levi’s Project Jacquared-enabled jacket stands to change that this year.

Top Wearable Devices by Product, Volume, Market Share, and CAGR

Product

Shipment Volume 2017

Market Share 2017

Shipment Volume 2021*

Market Share 2021*

CAGR (2017-2021)*

Watches

71.4

56.9%

161.0

67.0%

26.5%

Wristbands

47.6

37.9%

52.2

21.7%

1.2%

Clothing

3.3

2.6%

21.6

9.0%

76.1%

Earwear

1.6

1.3%

4.0

1.7%

39.7%

Others

1.6

1.3%

1.4

0.6%

-16.0%

Total

125.5

100.0%

240.1

100.0%

18.2%

Source: IDC