IDC Predicts Triple Digit Growth for Wearables


International Data Corporation (IDC) predicts triple digit growth for wearable’s in the current year. Wrist wear would dominate the wearable segment with triple digit growth and a big slice of market share. The research organization attributed the strong uptick to the new devices, new vendors, and higher awareness among the end-user. Apple Inc. (NASDAQ:AAPL)’s Apple Watch will also enter the market in April.

Wrist Wear

According to the IDC, an estimated 45.7 million units of wearables will be shipped in the current year, compared to 19.6 million recorded in the year 2014. This represents a whopping upside of 133.4%. Of this, wrist wear would account for 40.7 million shipments in the year 2015, which means 101.4% growth from the previous year’s 17.7 million.

The growth in wearables will continue to be seen in the years leading to 2019. The shipment of the wearable volume is predicted to reach 126.1 million units by the end of 2019. This will result in a compound annual growth rate, or CAGR, of 45.1% for the five-year period.

Significantly, wrist-worn wearables such as bracelets, watches, and bands will represent over 80% of all wearable device shipments in the forecasted period. IDC said that most of the vendors focused their efforts on these kinds of products only.

Gainers

According to the IDC, there will be increased focus on wearables with the ability to run third-party applications. This means that Apple Inc. (NASDAQ:AAPL)’s Apple Watch, Samsung’s Gear Watches, and Motorola’s Moto 360 are expected to gain from the predicted numbers. The research firm said that the smart wearable volume will reach 25.7 million units in the current year from 4.2 million units in 2014. This prediction suggests a whopping 510.9% growth in volumes.

Basic wearable’s will increase 30%, to 20.4 million, in the current year, from 15.4 million units in 2014. IDC’s Wearable’s team Research Manager, Ramon Llamas, said that smart wearables will make a big leap after the launch of Apple Inc. (NASDAQ:AAPL)’s Apple Watch this year. Wrist wear is expected to have a market share of 80.4% by 2019.

Worldwide Wearable Device Shipments, Market Share and Year-Over-Year Growth by Product, 2014-2019 (Units in Millions)

Product Category

2014 Shipment Volumes

2014 Market Share

2015 Shipment Volumes*

2015 Market Share*

2019 Shipment Volumes*

2019 Market Share*

Wristwear

17.7

90.4%

40.7

89.2%

101.4

80.4%

Modular

1.6

8.3%

2.6

5.7%

6.7

5.3%

Clothing

0.0

0.1%

0.2

0.4%

5.6

4.5%

Eyewear

0.1

0.3%

1.0

2.2%

4.5

3.5%

Earwear

0.0

0.0%

0.1

0.1%

0.6

0.5%

Other

0.2

0.9%

1.1

2.4%

7.3

5.8%

TOTAL

19.6

100.0%

45.7

100.0%

126.1

100.0%

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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