Wearable tech market to be worth $28.7 bn in 2016
July 12, 2016 - Global
In 2016, the global wearable technology market will be worth $28.7 billion, and brands in this market will ship 275 million units, up 18.4 per cent over 2015 levels, according to market-measurement firm Gartner. These figures include a substantial contribution from borderline subcategories such as Bluetooth headphones. Gartner forecasts that total wearable units shipped will grow at a CAGR of 17.9 per cent between 2015 and 2017, with the wrist-worn wearables segment growing the fastest, at a CAGR of 30 per cent.
The forecasts are part of The Wearables Report 2016 by Fung Global Retail & Technology.
According to another market-measurement firm IDC, Fitbit, was the top wearables brand with a shipment of 4.8 million units in the first quarter of 2016. It was flowed by Xiaomi, with 3.7 million units and Apple with 1.5 million units.
The wearables market’s rapid advance is reflected by developments at top brands.
In May 2016, Project Jacquard, a partnership between Google and Levi’s, unveiled a connected jacket designed for urban cyclists. The jacket has functionality similar to that of a smartphone; wearers can control their music and answer calls using technology embedded in the sleeve.
In the same month, news websites reported that Jawbone had slowed manufacturing of its UP range of wristbands and was forced to sell its remaining inventory to a third-party reseller in order to raise funds. However, Jawbone said it remains committed to the consumer wearables category.
“Our view is that the wearables market will continue to grow in the coming years, but that a slowdown is possible before the release of “wearables 2.0,” a second generation of products offering improved autonomy and use cases. Wearables 1.0 are effectively just another screen for smartphones. We expect the second generation of wearables to consist of smart devices that act in conjunction and integrate with the Internet of Things (IoT) autonomously,” Fung Global said.
Venture capital (VC) firms have invested nearly $2.6 billion in wearables companies since 2008, according to our analysis of CrunchBase data. Some $1.5 billion of that was invested in 2014 and 2015 alone.
Wearables are naturally converging with the IoT, and a number of companies have focused on creating software ecosystems for wellness and personal healthcare monitoring. Sportswear companies and IT giants such as Google and Apple are also developing software that connects devices.
Wearables for the head comprise a reasonably mature segment; headphones alone are worth about $10 billion per year, and Bluetooth headphones account for about 55 per cent of that total. Other devices in the category include virtual reality (VR) and augmented-reality (AR) headsets.
Wearables for the body include smart T-shirts, body cameras, highvisibility jackets, socks, shoes, bras and chest straps. Sportswear companies are highly active in this segment and are working on connecting fitness- and wellness-tracking devices with health-related software ecosystems.
Wrist wearables is a segment that has experienced massive growth, partly thanks to Apple, which shipped nearly 12 million Apple Watches in 2015, according to IDC, despite launching only in April of that year. Apple’s entry in the premium watch segment has even spurred some luxury watchmakers to create their own smartwatches. Another notable maker of wrist wearables is Fitbit, which sold close to $2 billion worth of fitness bands and other products in 2015.
According to the report, innovation and change are rife in the wearables market. A large number of startups - fueled by access to cheap components, 3D printing and willing crowdfunders - have emerged, and some have been further funded or acquired by VC firms or corporate buyers.
The study found that the market is characterized by a number of key trends such as the wearables market is merging and overlapping with other markets, such as medical devices.
Another trend is that larger companies appear to be developing wearables with a more strategic approach; the collaboration between Levi’s and Google is one example of this. In the past, a number of companies launched items such as smart shirts, bras or socks, but these efforts seemed to be mainly for PR value.
According to the report, fitness is becoming synonymous with wellness and personal health. The trend is being driven by the sportswear giants and by IT companies such as Google and Apple, which are developing wellness data clouds that allow people to measure, track and analyze more of their daily activities.
The report acknowledges two major trends underpinning the continued growth of the wearables market.
The first is that the emergence of “wearables 2.0” will shift the category from stand-alone devices to lifestyle-enhancing systems tying together multiple connected devices and cloud services. Brands such as Under Armour are currently leading the way in offering bundles of connected products and services.
Wristwear has dominated product launches and driven market growth so far, but the clothing and sportswear categories look set to expand in terms of wearables offerings. In May 2016, Google and Levi’s launched their first product collaboration, a smart jacket, and products scheduled to launch later in 2016 include Nike’s self-lacing shoes. (SH)
The forecasts are part of The Wearables Report 2016 by Fung Global Retail & Technology.
According to another market-measurement firm IDC, Fitbit, was the top wearables brand with a shipment of 4.8 million units in the first quarter of 2016. It was flowed by Xiaomi, with 3.7 million units and Apple with 1.5 million units.
The wearables market’s rapid advance is reflected by developments at top brands.
In May 2016, Project Jacquard, a partnership between Google and Levi’s, unveiled a connected jacket designed for urban cyclists. The jacket has functionality similar to that of a smartphone; wearers can control their music and answer calls using technology embedded in the sleeve.
In the same month, news websites reported that Jawbone had slowed manufacturing of its UP range of wristbands and was forced to sell its remaining inventory to a third-party reseller in order to raise funds. However, Jawbone said it remains committed to the consumer wearables category.
“Our view is that the wearables market will continue to grow in the coming years, but that a slowdown is possible before the release of “wearables 2.0,” a second generation of products offering improved autonomy and use cases. Wearables 1.0 are effectively just another screen for smartphones. We expect the second generation of wearables to consist of smart devices that act in conjunction and integrate with the Internet of Things (IoT) autonomously,” Fung Global said.
Venture capital (VC) firms have invested nearly $2.6 billion in wearables companies since 2008, according to our analysis of CrunchBase data. Some $1.5 billion of that was invested in 2014 and 2015 alone.
Wearables are naturally converging with the IoT, and a number of companies have focused on creating software ecosystems for wellness and personal healthcare monitoring. Sportswear companies and IT giants such as Google and Apple are also developing software that connects devices.
Wearables for the head comprise a reasonably mature segment; headphones alone are worth about $10 billion per year, and Bluetooth headphones account for about 55 per cent of that total. Other devices in the category include virtual reality (VR) and augmented-reality (AR) headsets.
Wearables for the body include smart T-shirts, body cameras, highvisibility jackets, socks, shoes, bras and chest straps. Sportswear companies are highly active in this segment and are working on connecting fitness- and wellness-tracking devices with health-related software ecosystems.
Wrist wearables is a segment that has experienced massive growth, partly thanks to Apple, which shipped nearly 12 million Apple Watches in 2015, according to IDC, despite launching only in April of that year. Apple’s entry in the premium watch segment has even spurred some luxury watchmakers to create their own smartwatches. Another notable maker of wrist wearables is Fitbit, which sold close to $2 billion worth of fitness bands and other products in 2015.
According to the report, innovation and change are rife in the wearables market. A large number of startups - fueled by access to cheap components, 3D printing and willing crowdfunders - have emerged, and some have been further funded or acquired by VC firms or corporate buyers.
The study found that the market is characterized by a number of key trends such as the wearables market is merging and overlapping with other markets, such as medical devices.
Another trend is that larger companies appear to be developing wearables with a more strategic approach; the collaboration between Levi’s and Google is one example of this. In the past, a number of companies launched items such as smart shirts, bras or socks, but these efforts seemed to be mainly for PR value.
According to the report, fitness is becoming synonymous with wellness and personal health. The trend is being driven by the sportswear giants and by IT companies such as Google and Apple, which are developing wellness data clouds that allow people to measure, track and analyze more of their daily activities.
The report acknowledges two major trends underpinning the continued growth of the wearables market.
The first is that the emergence of “wearables 2.0” will shift the category from stand-alone devices to lifestyle-enhancing systems tying together multiple connected devices and cloud services. Brands such as Under Armour are currently leading the way in offering bundles of connected products and services.
Wristwear has dominated product launches and driven market growth so far, but the clothing and sportswear categories look set to expand in terms of wearables offerings. In May 2016, Google and Levi’s launched their first product collaboration, a smart jacket, and products scheduled to launch later in 2016 include Nike’s self-lacing shoes. (SH)