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Wearable Purchases to Increase 18 Percent in 2016
A report released by Gartner projects that global sales of wearable electronic devices will top 200 million units and total nearly $30 billion this year.
Gartner said smartwatches are expected to become more common over the next four years, largely due to Apple popularizing the devices as a lifestyle trend. The tech giant entered the smartwatch market last year with the introduction of Apple Watch.
Stamford, Conn.--Gartner Inc., a Stamford-based information technology and research advisory firm, said it expects global sales of wearable electronic devices to increase 18 percent over last year, topping 200 million units and totaling nearly $30 billion.
According to Gartner’s forecast, retailers worldwide will sell 274.6 million units of “wearable tech,”devices such as Fitbits and the Apple Watch, in 2016, up from 232 million units sold in 2015.
Sales of wearable tech devices are projected to generate revenue of $28.7 billion.
Bluetooth headsets will be the No. 1 piece of wearable technology sold worldwide in 2016, in terms of number of units moved.
No. 2 will be smartphones, followed by wristbands (i.e., fitness monitors like the Fitbit that are worn on the wrist), other fitness monitors and sport watches.
Gartner said although wristbands were on par with smartwatches last year in terms of number of units sold, the company expects smartwatch sales to accelerate thanks to the official introduction of Apple Watch in 2015. The devices have the “greatest revenue potential of all wearables through 2019.”
Apple’s entry into the smartwatch category is expected to popularize the smartwatch as a lifestyle trend, much in same way the iPhone, iPad and iPod have become part of people’s everyday routines.
Gartner said 30.32 million smartwatches were sold worldwide in 2015. That number is expected to jump 66 percent this year, reaching 50.4 million units, and increase again in 2017, hitting 66.71 million units sold by year’s end.
In dollar figure terms, smartwatch sales are expected to total $11.5 billion in 2016, comprising 40 percent of the entire wearables market. By 2019, that figure is expected to reach $17.5 billion.
Gartner said in light of the popularity of smartwatches, makers of wristbands are experimenting with how to increase the devices’ functionality to include mobile payments, access, safety and overall wellness and health.
More information is available in the report “Forecast: Wearable Electronic Devices, Worldwide, 2016.”
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