Gartner says global end-user spending on wearable devices to total $52 billion in 2020
Competition from lower cost smartwatches will reduce average selling prices by 4.5% in 2021.
Worldwide end-user spending on wearable devices will total $52 billion in 2020 — an increase of 27% from 2019 — according to the latest forecast from Gartner, Inc. In 2019, worldwide wearable devices end-user spending is on pace to reach $41 billion.
End users will spend the most on smartwatches and smart clothing with spending growing 34% and 52% in 2020, respectively.
“More users coming into the smartwatch segment are replacing wristbands with smartwatches,” said Ranjit Atwal, senior research director at Gartner. “While brand leaders, Apple Watch and Samsung Galaxy Watch command premium pricing in the smartwatch segment, lower-priced players such as Xiaomi and Huawei will counterbalance high-priced smartwatches with lower cost smartwatches. We expect average selling prices of smartwatches to decline 4.5% between 2020 and 2021.”
Smartwatches and ear-worn devices will take the lead in term of shipments in 2020, with smartwatch shipments forecast to total 86 million units and ear-worn wearable shipments reaching 70 million units. The crowded ear-worn wearable market — led by Apple (AirPods), Samsung (Galaxy Buds), Xiaomi (AirDots) and Bose (SoundSport), and new entrant Amazon — remains competitive. Other competitors — such as Nuheara, Microsoft and Starkey — are offering attractive products that fuel demand such as hearing enhancements and over-the-counter hearing augmentation devices.