The global smartwatch market is expected to reach $43.8 billion by 2023, registering a CAGR of 22.7% during the forecast period. The major factors driving the growth of the market include the surging awareness toward personal health and fitness and increasing use of automotive control features in smartwatches.
Based on product, extension smartwatches held the largest revenue share in the smartwatch market in 2017. This is attributed to the increasing use of next-generation smartwatches that can be used as an extension of smartphones or associated devices. Also, additional applications, such as alerts, tracking, and connectivity, which are compatible with extension smartwatches, have attracted the interest of consumers in these watches in the recent years. Owing to this, the demand for extension smartwatches is increasing across the globe.
Based on application, personal assistance held the largest revenue share in the smartwatch market in 2017. This was due to the increasing interest of consumers toward the use of smartwatches for daily activities, such as sleep monitoring and schedule tracking as well as for routine assistance purposes. Additionally, increasing development in integrating more smart and assistive features in the upcoming smartwatch launches is expected to drive the demand for these watches in the coming years.
Rise in smartwatch-controlled automotive capabilities to drive the market
The rise in automotive control features in smartwatches is a key factor driving the smartwatch market. The market players are increasingly developing app-based offerings that are compatible with the new series of smartwatches and are going beyond features such as driver assistance, remote starting of cars, as well as smart locking and unlocking of cars. For instance, Viper SmartStart 4.0 is a next-generation smartwatch that is designed to work with Apple Watch and Android Wear devices. This device helps the user remotely start the vehicle by using the CDMA/3G technology, thereby connecting the vehicle to a wireless network. Hence, with the increasing development in extended automotive technology functionalities, the demand for these watches is growing across the globe.
Asia-Pacific (APAC) is expected to be fastest growing smartwatch market
Geographically, APAC is expected to be the fastest growing market over the forecast period. The increasing demand for high-end wearable devices, rising technological advancements by regional players, such as Titan, and growing use of utility watches are the major factors driving the smartwatch market in the region. Moreover, the increasing use of pocket-friendly smartwatches in China and the rising interest of consumers toward smartwatches in India are some of the other factors driving the APAC market.
Shift from unisex to gender-based smartwatches is offering lucrative opportunities
The increasing shift from unisex to gender-based smartwatches is a key opportunity for the smartwatch market players across the globe. Nowadays, women, particularly from the sports and corporate domains, are increasingly adopting smartwatches instead of traditional watches. However, companies offering unisex smartwatches often feature male-oriented designs that make them less popular among women. Due to this, manufacturers are increasingly focusing on gender-based smartwatches. For instance, in December 2017, Titan announced the launch of a smartwatch that is especially designed for women. However, there is still a huge gap in this industry with regard to the development of gender-specific smartwatches. Owing to this, the shift toward gender-based smartwatches is expected to create huge opportunities for the market players.
Global Smartwatch Market Competitiveness
The smartwatch market is highly consolidated, with the top three companies accounting for around 80.0% share. The key players in the market are focusing on launching new products to increase their profits. Some of the key players operating in the market are Apple Inc., Garmin Ltd., Fitbit Inc., Sony Corporation, Samsung Electronics Co. Ltd., Lenovo Group Limited, TomTom International BV, ASUSTeK Computer Inc., LG Electronics Inc., and Alphabet Inc.
GLOBAL SMARTWATCH MARKET SEGMENTATION
By Operating System (OS)