The number of wearable devices entering the market is growing at a steady rate. In the first quarter of 2015, new vendors like Apple have also caused a surge in the growth of the wearables market. Now, a new forecast by the International Data Corporation (IDC) called the Worldwide Quarterly Wearable Device Tracker has shown the massive growth of the wearable devices market. Fitness bands and smartwatches are finally catching up among consumers. The prediction gives us an idea about how huge the growth will be.
According to IDC, shipment of estimated 72.1 million wearable devices will be made in 2015. This is a 173.3% rise from the 26.4 million units which were shipped last year. The firm also made further predictions. A compound annual growth rate (CAGR) of 42.6% is expected over the next five years for shipment volumes. This will lead to the shipping of wearables to 155.7 million units in 2019.
Initially, the demand for wearable devices was low. But as the diverse range of products entered the market, it has grown significantly. The Apple Watch has also increased the interest among people. According to a report by IDC last month, another reason for the growth of wearables is the lower prices. As per the senior research analyst for IDC Worldwide Mobile Device Trackers, Jitesh Ubrani, over 40 percent of the wearables now cost below $100.
Ubrani said “The demand for basic wearables, those that do not run third party apps, has been absolutely astounding. Vendors like Fitbit and Xiaomi have helped propel the market with their sub-$100 bands, and IDC expects this momentum will continue throughout 2015.”
He also said that the firm expects that smart wearables which can run third party apps would lead the market in 2016. He added “Smart wearables like the Apple Watch and Microsoft’s HoloLens are indicative of an upcoming change in computing, and the transition from basic to smart wearables opens up a slew of opportunities for vendors, app developers, and accessory makers.”
A Challenge Ahead
As the demand for wearables increase, the competition also increases. Wearable device makers will find it challenging to get ahead of their competitors and will try to improve their product.
Ramon Llamas, the research manager at IDC’s Wearables and Mobile Phones said “Growth in the smart wearables market points to an emerging battleground among competing platforms. Android Wear, Tizen, and WatchOS are moving ahead with improved user interfaces, user experiences, and applications. These will raise the expectations of what a smart wearable can do, and each platform is vying for best-in-class status. We’re not there yet, but we’re seeing the building blocks of what is to come.”
From the prediction, you can get an idea of how the wearable market will grow.
What about you?
Do you use any wearable device? Do you think this prediction by IDC will come true? Share your thoughts in the comments below.
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Article Source – cnet.com