Global shipments of wearable devices are expected to more than double this year, to 76.1 million units from 28.9 million in 2014, according to the latest forecast IDC. The market researcher expects wearable device shipments to grow at a five-year compound annual rate (CAGR) of 22.9 percent to 173.4 million units in 2019.
IDC distinguishes between 'smart' wearables and basic wearables. The latter includes more simple devices such as fitness trackers, which today account for about two-thirds of the market. Driven by advancements in user interfaces and features, smart wearables will surpass the lower priced, less functional basic wearable category in 2018, IDC expects. Smart wearables will quickly move from a smartphone accessory primarily focused on notifications to a more advanced wearable computer capable of doing more processing on its own, the market researcher said.
Apple's watchOS is expected to quickly establish itself as market leader the smart wristwear market and maintain its position throughout IDC's forecast period, reaching over 47 percent of shipments in 2019. IDC expects second and third generations of the Apple Watch will drive shipment volumes later in the forecast, particularly among those customers who take a wait-and-see approach.
Other platforms, particularly Android Wear, will gain greater salience in the market later in the forecast period, as both consumer electronics majors and watchmakers adopt the Google OS. Also helping Android's cause is the broader and deeper selection of devices at multiple price points that will appeal to a wide audience. IDC expects Android will grow to over 38 percent of the wearables market in 2019.
Pebble, one of the pioneers of the smart wristwear market, is expected to see its market share decline even as overall volumes grow, driven by its low prices, compatibility with both Android and iOS smartphones, and avid fan base. Pebble is expected to take around 8 percent of the market this year and fall to 3 percent in 2019. Samsung's adoption of Tizen makes it the dark-horse platform in the market, with an estimated 6.7 percent of shipments this year, while Linux has yet to be adopted by many vendors.
