Smartwatch shipments were off to a very modest start in 2014. Estimates range from the mid to high single-digit millions depending on who you asked. Despite such humble beginnings, smartwatches are expected to quickly become a much larger market over the next few years. BI Intelligence estimated back in March that over 120 million smartwatches would ship in 2020. IHS has looked into its crystal ball as well and expects similar explosive growth with shipments to hit 101 million units in 2020.
The Apple Watch is expected to drive the overall smartwatch market. At the same time, given that it is only compatible with recent iPhones, other smartwatch companies will benefit from this growing consumer awareness. Whereas a smartwatch is only attached to 1 in 500 smartphone shipments, 1 in 20 will consist of a smartphone and smartwatch in 2020.
Apple and Google are expected to dominate the smartwatch market and account for 60% of the market in 2020. Apple will claim the crown with a 38% market share. Other players such as Pebble and even Samsung with its Tizen-powered Gear smartwatches, will need to adopt standard platforms supported by many hardware makers to remain relevant.
IHS warns that the entire smartwatch market could suffer if Apple does not find success. “Smartwatches could then follow the fate of Google Glass. Without Apple and its marketing strength, the smartwatch category needs greater marketing spend from other smartwatch makers to overcome damage to consumer perceptions,” forecasts Ian Fogg, senior director of Mobile & Telecoms at IHS. “Apple’s smartwatch competitors need the Apple Watch to succeed.”
Source : IHC Technology