Skip to main content

Smartwatch Reset: Wearable Tech Vendor Reaction

When the smartwatch market came into being, most industry analysts assumed that Apple would dominate the new category. Now it seems that Google Android will likely lead the market, via its extensive open ecosystem of software developers.

While the number of high-end smartwatches is faltering, hybrid watches remain largely unaffected by the market slow-down, according to the latest market study by Juniper Research.

These watches have traditional watch faces but offer some connected functions -- such as tracking the user's steps or enabling NFC payments -- and claim a larger portion of the market than previously anticipated.

Smartwatch Market Development Trends

While basic smartwatches account for around 30 percent the current market value, Juniper anticipates that this share will grow to almost 40 percent within the next five years.

The new research findings anticipate that as the high-end multi-functional smartwatch market slows, vendors will refine or remove unpopular functionalities, focusing on specific use cases, such as fitness and health.

According to the Juniper assessment, multi-functional smartwatches are the most visible smartwatch category overall, but now that initial interest has waned, the segment is consolidating.

Motorola and Huawei have both withdrawn from the market, while Pebble and Vector have been acquired. The sector is now primarily the preserve of Apple, Samsung and Fitbit -- together with traditional watchmakers such as Fossil and TAG Heuer.


Juniper believes that device revenue from smartwatches will grow at a Compound Annual Growth Rate (CAGR) of 13.3 percent over the forecast period, reaching over $21.5 billion per year in 2021.

In the absence of a 'must-have' use case for multi-functional smartwatches, Juniper has scaled back its estimates for market growth, and anticipates less than 60 million smartwatches will be shipped annually by 2021.

"Now that the initial smartwatch buzz is over, a longer product lifecycle and sluggish adoption are responsible for the slowing market, as users do not regularly upgrade," said James Moar, senior analyst at Juniper Research.

Other key findings from the study include:
  • Despite being present in several smartwatches, NFC is unlikely to generate new use cases for the category, as it is frequently locked into the device vendor’s mobile payment system, hindering innovation.
  • Customizable watch faces dominate smartwatch app downloads, implying that Google Android will take most of the category’s software revenue.

Popular posts from this blog

Growing Venture Capital in APAC AI Market

Technology is a compelling catalyst for economic growth across the globe.  Artificial intelligence (AI) rides a seismic wave of transformation in the Asia-Pacific (APAC) region — a market bolstered by bold government initiatives, swelling pools of capital, and vibrant tech ambition. The latest IDC analysis sheds light on this dynamic market. Despite a contraction in deal volumes through 2024, total AI venture funding surged to an impressive $15.4 billion — a signal of the region’s resilience and the maturation of its digital-native businesses (DNBs). Asia-Pacific AI Market Development The APAC AI sector’s funding story is not just about headline numbers but also about how and where investments are shifting. Even as the number of deals slowed, the aggregate value of investments climbed, reflecting a preference among investors for fewer but larger, high-potential bets on mature or highly scalable AI enterprises. The information technology sector led the AI investment charge. Top area...