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Worldwide Wearables Market Forecast to Reach 45.7 Million Units Shipped in 2015 and 126.1 Million Units in 2019, According to IDC

.2015 – A combination of new vendors, new devices, and greater end-user awareness will drive the worldwide wearables market higher in 2015. According to the most recent forecast data from the International Data Corporation (IDC) Worldwide Quarterly Wearable Device Tracker, vendors will ship a total of 45.7 million units in 2015, up a strong 133.4% from the 19.6 million units shipped in 2014. By 2019, total shipment volumes are forecast to reach 126.1 million units, resulting in a five-year compound annual growth rate (CAGR) of 45.1%.
Propelling the market higher in 2015 is an increased focus on smart wearables, or those devices capable of running third-party applications. These include devices like the Apple Watch, Motorola–s Moto 360, and Samsung–s Gear watches. The total volume of smart wearables will reach 25.7 million units in 2015, up a whopping 510.9% from the 4.2 million units shipped in 2014. Basic wearables, or those devices that do not run third party applications, will grow from 15.4 million units in 2014 to 20.0 million units in 2015, resulting in 30.0% year-over-year growth.
“Smart wearables are about to take a major step forward with the launch of the Apple Watch this year,” said Ramon Llamas, Research Manager with IDC–s Wearables team. “The Apple Watch raises the profile of wearables in general and there are many vendors and devices that are eager to share the spotlight. Basic wearables, meanwhile, will not disappear. In fact, we anticipate continued growth here as many segments of the market seek out simple, single-use wearable devices.”
Wrist-worn wearables, including bands, bracelets, and watches, will account for more than 80% of all wearable device shipments throughout the forecast. Most vendors have concentrated their efforts on these products and IDC expects this trend to continue. Behind wrist-worn products are modular wearable devices, or those devices that can be worn on any part of the body with a clip or a strap. Modular devices are traditionally much simpler to produce than other wearable devices and function well as use-specific devices. Clothing is the third category and is expected to grow the fastest as companies embed items like shirts, socks, hats, and other products with computing power. Eyewear is a smaller category, which IDC expects to first catch on among enterprise users within select vertical markets. Finally, earwear will comprise a small part of the overall market as earphones expand from audio to include health and fitness features.
“The explosion of wearable devices was clearly led by fitness bands, which until recently commanded prices that provided comfortable margins, but those days are changing,” said Ryan Reith, Program Director with IDC–s Worldwide Quarterly Device Trackers. “The price of these fitness bands have come down so significantly in some markets that smartphone OEMs are now bundling them with smartphones at little cost. Meanwhile, the market is quickly shifting toward higher-priced devices that offer greater functionality. While Apple–s entry into the market is symbolic, the key to success will be to create compelling use cases for the average consumer. Many users will need a good reason to replace a traditional watch or accessory with a wrist-worn device or some other form of wearable that will likely require daily charging and occasional software upgrades.”
You can listen to Llamas and Reith talk in greater depth about IDC–s new wearables forecast in the latest IDC Perspectives Podcast, available on iTunes, on the Web, and via RSS.
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About IDC Trackers
IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC–s Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.
For more information about IDC–s Worldwide Quarterly Mobile Phone Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.
 
Companies Covered:
Motorola Solutions, Inc., LG Corp., Samsung, Microsoft Corporation
Regions Covered:
United States
Topics Covered:
Mobility, Software 
 
 

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC–s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of [url=http://www.idg.com]IDG[/url], the world–s leading technology media, research, and events company. To learn more about IDC, please visit [url=http://www.idc.com/]www.idc.com[/url]. Follow IDC on Twitter at [url=http://twitter.com/IDC] @IDC[/url].

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