Top 10 Smart Watches Market Trends to Watch Out for in 2016
The global smartwatch market was valued at US$ 701.2 Mn in 2013 and is estimated to grow at a CAGR of 53.6% during the forecast period from 2014 to 2020
According to Smartwatch Group, around 40 companies in 2013 have launched smartwatches. Together, they have sold a total of 3.1 million units, which generated a market volume of US$700 million. Market analysts predict that the global smart watches market will demonstrate a remarkable growth this year. So, what are the trends that will fuel the growth of the market? Let’s take a look.
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#1 - Top 10 Vendors Dominate over 80% Market Share
The key players in the global smart watches market are Google Inc., ConnecteDevice Ltd., Martian Watches, Qualcomm Inc., Metawatch Ltd., Samsung Electronics Co. Ltd., Pebble Technology, Sony Corp., and Samsung Electronics Co. Ltd. The top 10 companies in the global smart watches industry account for about 80% of the total market share. These key players are playing a major role in the development of the future smart watches market.
#2 - Two-third of Current Smart Watch Companies are Startups
Around two third of the total smart watch companies in the world are startup companies, which are younger than five years old. Around half of these smart watches companies are located in China or the United States.
#3 - North America and Europe together Rule the Market
North America and Europe together attributed to over 55% market share in 2013. The higher purchasing power along with awareness among users is expected to drive these regional smart watches industry in the coming years. The U.S. is the innovation hub of smart watches in the world, where key players such as Google, Apple, Fitbit, Pebble, and Jawbone are located.
#4 - China a Thriving Industry for Smart Watch Manufacturers
On the other hand, China is the manufacturing hub of the smart watches market. A large number of smart watch manufacturers are based in China. Even though they provide mostly non-branded, low quality gadgets, they have become the basis of many of today’s serious smart watch projects.
#5 - High-end Smart Watches Hold the Lion’s Share
The high-end smart watches segment in the global smart watches industry attributes for around 91% of the market share. The growing demand for wearable technology with the entry of a considerable number of established players will drive the market in 2015.
#6 - Average Selling Price of Smart Watches will Decline
The average selling price of these gadgets is anticipated to decline gradually. This is attributed mainly to the expected number of market entrants. Even though the market is currently overrun with brands offering high-end products at premium prices, the increasing R&D and commercialization efforts will result in a significant number of mid-to-low-range priced products.
#7 - FMCG Industry’s Growth to Drive Smart Watches Market
Two other key drivers of the smart watches industry are the growing consumer electronics industry and its unique features. Accelerating technological advancements with changing consumer preferences also drive the smart watches industry.
#8 - Health-conscious Consumers Boost the Smart Watches Market
The global smart watches market is segmented into three major categories on the basis of application: general users, sports and healthcare users, and others. Smartwatches are especially beneficial for health-conscious users who are aiming for fitness tracking and other health-related purposes. The increasing demand from these users is giving a boost to the growth of the market.
#9 - Growing Adoption of Wireless Technologies Fueling the Market
Another factor that is fuelling the growth of the global smart watches market is the increasing adoption of wireless softwares and technologies. In addition, the ongoing adoption of mobile processor technologies is accelerating the demand for this market.
#10 - Lack of Standardization to Inhibit the Market
Even though the global smart watches market is driven by many factors, it is restrained due to lack of proper technology standards. Since this is an emerging technology, technology standards are not clearly defined. This wearable computing device has failed in the past due to its ugly look, bulkiness, weak functionality, and battery issues.
Although there are certain factors that restrain the global smart watches market, increasing innovation will be a chief opportunity for this market. Around 150 companies in the market have innovative smart watches in the pipeline, ready to be launched in the coming few years.
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