Report: 2015 will be the year of the smart watch
BOULDER, Colo. — The market for smart watches is set to explode in April with the launch of the Apple Watch, along with the introduction of competing smart watches from the likes of Swatch, according to a new report from Tractica.
“2015 will be the year of the smart watch,” stated research director Aditya Kaul. “Since Apple’s announcement, there has been a flurry of activity among competitors trying to position and reposition themselves, and we expect a high degree of experimentation in terms of form factor, functionality and operating system, offering consumers a wide range of options.”
The nascent smart watch market experienced a period of tremendous innovation and growth during 2014, with global device shipments more than doubling from 2.3 million units in 2013 to 5 million units in 2014. A number of prominent industry players launched smart watch products, including Samsung, Sony, Motorola and LG, and Google introduced its Android Wear operating system for smart watches. However, according to the Tractica report, the defining moment for smart watches during the year was the announcement of the Apple Watch in September 2014.
Now set for launch in April 2015, Apple’s biggest new product introduction since the iPad is anticipated to stimulate a surge in consumer awareness and adoption of smart watches, contributing 16.7 million units to the annual total of 24.4 million smart watches shipped during 2015, according to Tractica’s analysis. The market intelligence firm forecasted that the smart watch sector will continue to experience strong growth for the next five years, rising to 94.9 million shipments annually by 2020, representing a compound annual growth rate of 71%.
Kaul added that companies like Samsung, LG and Motorola have decided to compete head-on with Apple in the high-end, multi-function smart watch segment. Swatch, the largest watchmaker in the world, has announced that it is launching a smart watch to rival Apple in 2015. Others like Garmin, Basis and Wellograph will continue to focus on the fitness and wellness markets. And a third segment has emerged that includes incumbent watchmakers like Casio and newer names like Martian and Kairos, who have decided to take a different approach and introduce smart features in traditional watches, both analog and digital.