Apple Watch Tipped To Lift Wearable Market: IDC report
By 2019, IDC predicts total shipment volumes will reach 126.1 million units, resulting in a five-year compound annual growth rate (CAGR) of 45.1 percent.
Propelling the market higher in 2015 is an increased focus on “smart wearables”, or those devices capable of running third-party applications. Jockeying for position in this arena are colourful devices, including 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 percent from the 4.2 million shipped in 2014, according to IDC.
Basic wearables – devices that do not run third party applications – will grow from 15.4 million units in 2014 to 20 million units in 2015, resulting in 30 percent 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 at 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 will be far and away the most popular option for consumers, accounting for more than 80 per cent of all wearable device shipments, with IDC expecting most vendors to continue to concentrate on these devices.
Modular devices, attached with clips or straps, will follow in second place, while the clothing category is expected to grow the fastest, with companies incorporating computer power into items such as shirts, socks and hats.