The smartwatch market has found an ally in analyst firm Forrester, who have announced that they expect the wearables market to grow from $4.8 billion to $9 billion by 2022, which represents a compound annual growth rate of 9 percent.
Forrester has also forecast that wearables sales will double in the next five years, with smartwatch sales leading the way. They expect smartwatches to have a 51 percent share of the wearables market by 2022, up from 21 percent in 2017.
This bodes well for the wearables market, which has been criticized by numerous analyst firms and media outlets to date. For instance, a lazy article, published in 2016 by a certain source, has the apt title “Wearables are dead”, and uses Pebble’s demise as a cannon to lay into the entire wearables market and claim it is a dead duck. How fitting it is, then, that almost a year on, Forrester has announced the exact opposite.
The smartwatch market’s surge in performance can be attributed to a few things. Mainly because OEMs are releasing more and more devices aimed at health and fitness, a market that has already proven itself with fitness bands. Smartwatches can simply offer more features than fitness bands for both athletes and casual gym-goers. Another reason for the market’s decent performance is that overall, the price of new smartwatches is falling, and second and third-generation products are now available at an extremely low price.
Leading the way in the smartwatch popularity stakes, you will find as no surprise is Apple. They are backed by huge advertising budgets and a brand that is part of modern history, promoting a product that works in sync with the iPhone. It’s estimated that the Apple Watch series accounted for nearly half of all smartwatch shipments in the second quarter of 2017. Another household name, Samsung, came in second with 800,000 shipments, respectively.
Of course, it remains to be seen exactly how the wearables market performs in the future, but Forrester’s words of wisdom have certainly shined a light on the matter.