Due to continued interest in everything from smartwatches to medical devices, shipments of connected wearables rose substantially in 2015, reaching 72.5 million compared to 25.3 million in 2014. That growth should continue through 2020, where the shipment rate is predicted to reach 228 million, according to a report by Swedish machine-to-machine and Internet of Things market research firm Berg Insight.
Bluetooth is the primary connectivity source for connected wearables, a trend that Berg Insight doesn’t expect to end any time soon. Cellular connectivity will become a more prevalent option in the coming years, according to the report, which projects that nearly 18 million of the wearables sold in 2020 will feature cellular connectivity. The majority of devices featuring embedded technology will be smartwatches and devices focused on safety and people monitoring.
If manufacturers can continue to provide improvements and a variety of devices at prices that accommodate the wide range of consumer budgets, smartwatches should become the most popular form of connected device over the next five years. Health competition should help spark the necessary growth, as companies such as Apple, Samsung, and even Pebble continue to put forth enticing devices. Android Wear vendors such as Motorola, LG, and ASUS are also creating devices that Berg Insight calls “capable and attractive.” It isn’t just technology companies that are entering the smartwatch field. As Berg Insight’s Senior Analyst Johan Svanberg noted, traditional watch manufacturers such as Fossil and TAG Heuer have already embraced the technology.
The temptation of increasing smartwatch involvement for both well-known and budding companies is perhaps being intensified by the growth of the market. Berg believes smartwatches shipments should reach 19.5 million by the end of 2015. If that predication proves true, it would signify 353 percent year-on-year increase in smartwatch shipments.
Currently, the most popular connected device is the fitness tracker, as Berg Insight projects 51 million of the units will have been shipped in 2015. Driving the success of this wearable device category are Fitbit, Jawbone, Garmin, and Xiaomi.
“Xiaomi has been particularly successful with its affordable trackers and the company is the only fitness tracker vendor which can compete with Fitbit in terms of sales volumes,” Svanberg added.
Growing smartwatch sales will hamper the fitness tracker’s grip on the wearables market especially due to the fact many smartwatches boast the same features that make fitness trackers appealing to the consumer. Despite its fall from atop the wearble device market, Berg expects the fitness tracker device category to reach 71 million shipments in 2020, due in large part to lowered prices and new form factors.
The report also suggests connected wearables such as cardiac rhythm management devices, ECG monitors, mobile Personal Emergency Response Systems (mPERS) and wearable computers will continue to be common amongst the medical, people monitoring, and enterprise segments. Authentication and gesture wristbands, notification rings, smart motorcycle helmets, and smart gloves are becoming more popular due to the miniaturized electronics, lower power wireless connectivity, and cloud services that they feature. Finally, the report suggests smart glasses should become a larger wearable device category over the next five years due to use cases in professional markets and niche consumer sectors.
