Some 6.8 million smartwatches were sold in 2014. That number includes a number of devices such as Fitbit’s devices that arguably belong more in a fitness tracker category, suggesting that the actual number is even lower than that. With more than 150 companies now developing smartwatches and the upcoming Apple Watch, smartwatch shipments are expected to jump significantly this year and will continue to do so right through to 2020 when smartwatches will account for the majority of wearable shipments.
A new report on the smartwatch market by BI Intelligence predicts that the overall wearable computer market will grow by 22% per year through 2020 to reach annual shipments of 235 million units that year. Smartwatches in particular will grow at a faster rate (about 25%) and will account for 52% of the wearable market by 2020.
The Apple Watch is expected to drive much of that growth. 2015 shipments could hit 15 million units (less than the 26 million predicted by J.P. Morgan). It will establish itself as a “fashion-forward accessory” and will compete against not only other smartwatches but also traditional luxury watches. In fact, BI Intelligence expects that it could account for about 40% of the luxury watch market in 2020, assuming a lower-bound price of US$350.
BI Intelligence suggests that Apple could be shipping more than 40 million Apple Watches a year by 2020 while the overall luxury watch industry will ship about 60 million.
Source : Business Insider