Gartner has released a new analysis that contains optimistic expectations for the wearable market. These projections are driven by the robust rise of timepieces and hearables.
In recent years, there has been a rise in demand for smartwatches, which has been considerably boosted by the introduction of the Apple Watch on April 24, 2015. The product shot to the top of the wearables sales charts almost overnight, moving almost 4.2 million shipments in the second quarter of the fiscal year 2015 alone. Since that time, sales of smartwatches have shown no signs of slowing down and continue to show promising growth.
The most recent data from Gartner indicates that this trend will likely continue. In the next four years, it is anticipated that the category will more than quadruple, going from 53 million units delivered in 2018 to 115 million units in 2022. This growth will be driven by companies such as Apple, Samsung, Garmin, and Fitbit, which only recently entered the market relatively recently.
A decrease in costs will contribute, in part, to the acceleration of this rise. At the moment, purchasing a smartwatch will set you back a significant amount of money. Nevertheless, beginning in 2019, this will begin to change. We’ve already seen Fitbit undercut some of its competitors with the $150 Versa, and that’s not even counting the many Chinese companies that are expanding overseas.
According to Alan Antin, senior director at Gartner, “At present, the smartwatch market is buoyed by the fairly stable and greater average sale price (ASP) of the Apple Watch.”
It is anticipated that the average selling price of smartwatches will gradually decrease from $221.99 in 2018 to $210 in 2022. This is due to lower-priced competing companies as well as higher volumes, which lead to cutbacks in production and component expenses. Apple and other well-known companies like traditional watch brands are working hard to keep prices stable.
It is anticipated that ear-worn gadgets, also known as hearables, will experience growth that is even more robust. According to Gartner’s forecast, by the year 2022, they will account for approximately one-third of the wearables industry and become the most lucrative segment. Their usefulness will grow as they gradually take over more and more of the tasks that people do with their smartphones now.
According to Gartner, the total number of wearable devices shipped in 2019 will increase by 26%, from 179 million to 225 million. It is anticipated that by the year 2022, this number will have more than doubled, reaching 453 million.