Framingham, Mass: According to new data from the International Data Corporation (IDC), worldwide quarterly Wearable Device Tracker Global shipments of wearable devices are expected to total of 396 million units in 2020.
This marks a 14.5 percent increase from the 345.9 million units shipped in 2019 and forecasts shipment volume to have a five-year compound annual growth rate (CAGR) of 12.4 percent and a total of 637.1 million units in 2024.
Even though the vendor’s scaled-down production and end-users were quarantined, demand for wearables remained steady. The market was propelled by near-record demand for hearables (wearables that hang on or plug into the ear), 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.
Ramon T. Llamas, research director, Mobile Devices, and AR/VR said, “Wearable devices and services will evolve together in the coming quarters. Wearables are the perfect device to collect user data and services provide guidance and actionable insight. Together, they offer the user a virtual coach to make better decisions and achieve their goals.”
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 (i.e., guided workouts, coaching, and diet advice) while incorporating data from their wearable device.
Category Highlights:.
- Hearables: It will account for the majority of shipments throughout the forecast while posting a market-beating CAGR of 14.1 percent.
- Watches: It is comprised of smartwatches and basic watches will experience the highest CAGR at 14.3 percent.
- Wristbands: It will slowly crawl upward with shipments growing at a CAGR of 2.4 percent.
“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.
He also added that "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.”
