CCS Insight tipped global shipments of wearable devices to almost double between 2018 and 2022, as the Apple Watch continues to succeed and drive broader interest in smartwatches.
In a statement, the research company said shipments for wearable devices will reach 117 million in 2018 and forecast the figure would hit 233 million units in 2022, when the market value of the segment will reach $27 billion.
CCS Insight said the growth is being fuelled by solid demand for smartwatches, which continue to gain in popularity due to the success of market leader Apple: the vendor further extended its product range in September with its Apple Watch Series 4.
With the company offering its device “at the broadest range of prices so far”, it is becoming more accessible to iPhone owners, added the research company.
While Apple’s success is also helping to grow the broader market, CCS Insight said it also seeing more users engaged with their smartwatches in general, which could provoke a wave of replacement sales in coming years.
Senior analyst for wearables George Jijiashvili said the demand for replacement devices represents “a step change from a few years ago”, when there were high levels of abandonment from early users.
“The combination of Apple’s success with its Watch and the high engagement levels we’re seeing among smartwatch owners reflects the value people are now placing on these products,” he said.
While Apple could be best positioned to take advantage of replacement sales due to its expanding line of watches, growing awareness and satisfaction with smartwatches among “technology enthusiasts” will also help broaden the market as new companies entering the segment also make progress.
“The Apple Watch has done well because it’s bought by iPhone owners. People with Android smartphones represent a far bigger market and we believe that conditions are right for the next wave of smartwatch adoption thanks to an ever-improving selection of smartwatches from fashion and consumer electronics brands hit the market,” added Jijiashvili.Subscribe to our daily newsletter Back