Global Smartwatch Report: Market Outlook 2019-2026

The smartwatch market was valued at US$ 12.45 Bn in 2017 and expected to be growing at a compounded annual growth rate (CAGR) of 16.4% during the forecast period from 2018 to 2026.smart bracelet watch bluetooth

In recent years, the functionality of watches has expanded well beyond just showing time. The introduction of the smartwatches, with its multi-functional features, has disrupted the traditional analog watch industry. The fact that, in many Asian countries, the demand for luxury Swiss watches have declined drastically as a result of more people preferring affordable timepieces such as smartwatches. Moreover, an increasing number of smartwatch manufacturers are focusing on improving the visual aesthetics of the watches in order to present them as fashion pieces.

One of the most important factors aiding the smartwatch market growth can be attributed to the enhancement of functionalities of smartwatches. Modern smartwatches have various features such as GPS, barometer, heart rate sensor, better display, and longer battery life among others. Rising net disposable income among consumers is another prominent factor contributing to the smartwatch market growth.

The manufacturers of smartwatches are continuously engaged in research and development activities. These activities are directed towards adding new functionalities as well as improving the existing functionalities. For instance, in August 2018, Samsung unveiled its latest smartwatch; the galaxy watch. It features 3G / LTE connectivity and charges wirelessly. The company also claims that the new watch would provide an improved battery life that should provide several days of use on a single charge.

Similarly, in October 2018, Huawei launched the Huawei Watch GT, which the company claims, uses an innovative smart power-saving algorithm. Depending on user activity, this feature enables it to dynamically switch between performance and efficiency modes, thereby improving the battery life. The watch also features enhanced positioning capabilities which can simultaneously tap into GPS, GALILEO, and GLONASS three of the major satellite positioning systems, for precise positioning.
In the coming years, the online sales channel expected to witness the fastest growth rate. The availability of better offers in the form of discounts coupled with ease of shopping is expected to lead an increasing number of consumers to choose online platforms over offline platforms.

Moreover, improving internet penetration in regions such as the Asia Pacific and the Middle East and Africa bodes well for the market growth. Faster delivery and easy return policy are further supporting the growth of the online segment.