Market share refers to the portion of a market dominated or controlled by a particular brand, company, or product.
According to Wikipedia, it is the percentage of the total revenue of a market segment that the company’s business makes up.
Market share is a pointer to how well a company is doing compared to its competitors. It is an indicator of the brands that are leading the market and those that are lagging. You can use this to monitor the market trends and keep tabs on customer preferences over time.
In this article, we will explore the following:
- The Evolution of The Smartwatch Market
- The Effect of Covid-19 On the Smartwatch Market
- Top Players In the Smartwatch Industry
- Factors Influencing the Smartwatch Market
- Future Prospects of the Smartwatch Market
The Evolution of The Smartwatch Market
The past decade has seen a rapid evolution of smartwatches. There is a massive growth in their production and sales as they have gradually taken over the entire market of wristwatches. At the same time, mechanical watches are gradually getting loosing their savor.
While the 2000s have been the best years for the smartwatches market, the evolution of smartwatches dates as far back as 1927, when the watch Wristlet Route Indicator was invented.
In those days, they did not massively produce smartwatches. Their use was limited to the tiny fraction of the population who could afford cars. In other words, it was more of a luxury item than a necessary device.
However, over the past few years, the smartwatch industry has massively grown. It has become more inclusive of a more significant fraction of the global population.
The year 2012 was significant in the evolution of smartwatches. This is the year that Pebble set a trailblazing record by raising over 10 million dollars in a crowdfunding campaign for their smartwatch.
This clearly indicated that the number of consumers and the general population interested in smartwatches was significantly increasing.
According to the market analysis report by Market Data Forecast, the worth of the global smartwatch market size has been estimated at 57.3 USD billion in 2021. There is a further prediction that it will reach 132.9 USD billion by 2026, registering a compound annual growth rate (CAGR) of about 18.32 percent during the forecast period. This amounts to a 14.5 percent CAGR within the period forecast.
The Effect of Covid-19 On the Smartwatch Market
The outbreak of Covid-19, however, caused a slump in the global demand for electronics in the first quarter of 2020. Yet, as the global economy gradually stabilizes after the effects of the pandemic, there has been a steady recovery of the market as the sales of wearables have recently witnessed a significant influx from online sales.
According to Counterpoint’s Research recently published Global Smartwatch Model tracker, the smartwatch market has seen a full recovery from Covid-19 as the global smartwatch shipments in the second quarter of this year increased by 27 percent compared to this same period last year.
Top Players In the Smartwatch Industry
As the smartwatch market continually grows, there is increasing competition among companies actively involved in smartwatch production.
While there are a diverse array of tech companies that have one way or another delved into smartwatch production, especially in the last decade, the leading brands in the smartwatch market include Apple Inc., Google Inc., Huawei, Samsung, Garmin Inc., Fitbit, Imoo, Motorola, Sony, among others.
The Apple Watches dominates the smartwatches market with a 52.5 percent worldwide smartwatch market share.
Recent research from Strategy Analytics shows that the global Apple smartwatch shipments skyrocketed at an annual increase of 47 percent to reach 18 million units in the second quarter of 2021.
The Apple watch series 6 today is inarguably the most popular smartwatch model. This dominance can be attributed to the model’s blend of sleek design, good usability on a small screen, and a vastly growing portfolio of health and fitness apps.
With the fast rate at which Apple continues to step up technology and produce wearables with an improved advantage over even trending models, it is no surprise that they have managed to remain at the very top of the smartwatch market.
The Apple watch series 7 is by far the largest and most advanced technological creation in the world of smartwatches.
The watch’s design is refined with more subtle features like softer and more rounded corners. With its unique display refractive edge, the full-screen watch faces and the apps connect seamlessly with the case’s curvature.
The Apple watch series 7 is one of the most durable Apple watches. It has a crack-resistant and more powerful front crystal. The watch is the first Apple watch to achieve an IP6X certification for resistance to dust. It also maintains a WP50 water resistance rating.
Additionally, it offers indispensable tools for wellness and health. This includes an ECG app, an electrical heart sensor, and a blood oxygen sensor.
These many features and more are why the Apple Smartwatch has been able to stay atop the market even amid rigorous competition.
Samsung follows closely with a market share of 11 percent. The Samsung smartwatch market is especially blossoming in places like North America, Europe, and South Korea.
According to recent reports, Samsung improved its ranking in the market after the successful and massive sales of the watch Active 2 and Galaxy watch 3. As of now, it is the third-largest smartwatch manufacturer globally, overtaking China’s Imoo.
The Huawei smartwatch has seen recent growth spurts as its shipments grew from 8.7 to 11.1 million. As a result, its market share increased from 8 percent to 10 percent.
Huawei is currently the second leading brand in the smartwatch market, having displaced Samsung in recent months due to rapid growth and development.
The Huawei Watch 3 has excellent fitness tracking features incorporated in it. It brings innovative smartwatch features, including running apps and eSim support mobile data and independent calls.
Its dial body is made of stainless steel, while the skin-friendly silicone strap is easily removable.
In addition, it comes with a 5ATM waterproof rating which means you can use it for shallow-water activities such as pool swimming.
These and many more have given the Huawei smartwatch an edge in the industry and a place of advantage as it continues to grow.
Garmin has proved itself as a rapidly growing brand. It has placed itself as healthy competition in the smartwatch market after going through an incredible YoY growth of 62 percent in the second quarter of 2021. During this period, it recorded its highest quarterly shipments. With a market share of 6 percent, the brand sits right on the heels of Imoo.
While Pebble played a Kickstarter role in the evolution of smartwatches by conducting a Kickstarter campaign that ran from April 11, 2012, to May 18, 2012, and was the most funded project in Kickstarter history, the Pebble smartwatch is now discontinued.
On December 7, 2016, Pebble officially announced that the company would shut down and no longer manufacture or support any devices or honor any existing warranties.
Fitbit then purchased Pebble’s intellectual property.
Acquiring Pebble in 2017 for 23 million dollars, Fitbit entered into the smartwatch industry, although this was quite late.
Over the years, Fitbit has experienced fluctuations in its revenue and market share.
Over the past few years, Fitbit has attempted to create a product that can compete with the Apple watch. Some of the intended features are the ability to respond to messages and make payments. However, it has not recorded much success, so it remains geared towards health and fitness.
Apple, Samsung, and Huawei have remained at the top of the smartwatch game. They have broadened their market to include a wide diversity of customers worldwide.
The Smartwatch Market for Kids
The smartwatch market is not just for adults. Kids constitute a large proportion of consumers of this market.
China dominates the kids’ smartwatch market globally with about 62 percent market share, accounting for more than three out of every five devices sold.
The Chinese brand Imoo leads the kids’ smartwatch market with a 26 percent market share in 2019.
This figure is followed closely by Huawei, with a 9 percent market share in 2019.
The brand Xiaomi follows behind with a market share of 4 percent both in 2018 and 2019.
Factors Influencing the Smartwatch Market
Innovations lead the smartwatch market; smartwatch companies spend immensely on the R and D front.
Factors driving the smartwatch market size include increased demand for sports devices and wireless fitness. Also, top players have a rise in health awareness and a surge in technological advancement in the smartwatch market.
North America is presently dominating the smartwatch market in terms of global demand by recording a nearly 35.47 percent share.
You can attribute this dominance to several factors, including a rise in the personal disposable income among the younger tech-savvy population. Also, an increase in the number of younger and more health-aware citizens, plus advanced medical infrastructural facilities compatible with sensors present in smartwatches, all contribute to this.
Future Prospects of the Smartwatch Market
There is a prediction that the smartwatch market will grow at a cumulative annual growth rate (CAGR) of 14 percent between the period 2021 to 2025.
Internet of Things (IoT) driven smartwatches are a significant trend that will operate as a stand-alone technology and interact with other IoT devices to improve the quality of life of people.
The demand for smartwatches has skyrocketed globally due to the rising penetration rates of urbanization and the growing demand for aesthetically appealing and advanced products that can better serve the consumer’s requirements, such as multiple features in one device, time schedules, among others.
Additionally, with the incorporation of health monitoring features into many smartwatches, smartwatches are experiencing a rise in new users, inclusive of the older population, especially those who are health aware and desire to have a real-time update of their health status.
More and more people are leveraging these devices to address their critical health needs rather than just fitness tracking.
As science and technology advance and as the population becomes more aware of the importance of various features incorporated into smartwatches, the smartwatch market continues to soar steadily. Companies that keep up pace with the developments of technology will continue to lead the market of smartwatches.