IDC has predicted that a total of 125.5 million wearable devices will be shipped globally in 2017 and the same would reach up to 240 million by 2021, showing a CAGR of 18.2%.
For a market comparison between 2016 and 2017, IDC predicts in the current fiscal, the wearable devices shipment would grow by 20.4% from 2016 when the total shipments was 104.3 million.
The research firm says this upward growth shows the kind of transformation the wearables market is going through and expects the momentum would keep going up in next five years.
Among the werable devices, IDC predicts, watches will account for major part of vendors’ shipment. However, it clarifies that basic watches or those watches that do not run third party applications, including hybrid watches, fitness/GPS watches, and most kid watches would out-ship the smart watches like Apple watch or Smasung Gear etc. It adds that the smart watches would see an upward movement during 2019 as high-speed cellular connectivity becomes more common.
The other products in the wearable devices category IDC tracked include wrist bands, earwear and clothing. The firm says though wrist bands used to dominate the market earlier, it will see a slow growth in the forecast period.
“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,” it says.
From a market share perspective, in 2017, watches will command 56.9% of the total shipments totaling to 71.4 million whereas the same would reach up to 161 million 2021 commanding a market share of 67%.
Similarly, wrist bands will have a market share of 38% in 2017 with 47.6 million shipments. But it will degrow to 21.7% market share in 2021 with 52.2 million shipments.
Interestingly, clothing with smart chips will see a huge growth in the wearable segment during this forecast period, says IDC. By 2021, clothing wearables that include jackets, shirts and belts etc will have a market share of 9% with 21.6 million shipments from 2.6% market share in 2017 with just 3.3 million shipments.