GfK Forecasts 51 Million Wearables Bought Globally in 2015

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NUREMBERG, Germany, Mar. 3, 2015 /PRN=KYODO JBN/ --

17.6 million smartwatches and health and fitness trackers (HFT) bought

worldwide last year  

HFT accounted for 77 percent of overall volume sold  

GfK predicts smartwatch sales will overtake HFT sales in 2015  

GfK's trends data shows that 13.5 million health and fitness trackers were sold

globally last year, compared to 4.1 million smartwatches. With major companies

expected to enter the market this year, GfK predicts that the combined market

will leap to 51.2 million sales in 2015 - three times the size of 2014 - with

both segments showing equal importance in this converging market.

Sales units (mn)                              2014                2015

Smartwatch                                     4.0                26.1

Health & Fitness Tracker                      13.5                25.0

Total                                         17.6                51.2

Table 1: GfK estimated global sales by volume[2]

Last year, actual sales of health and fitness trackers (HFT) easily outstripped

smartwatches. This was driven, in part, by the significantly lower average

sales price of HFT, making these devices more affordable than full-feature

smartwatches. Another reason for the higher popularity of HFT (according to a

GfK survey of 5000 smartphone owners across five countries[1]) is the fact that

a majority of consumers see activity tracking as being the most important

function of a wearable - including a smartwatch - at the present time.

Dr Jan Wassmann, Global Product Manager for Wearables at GfK, comments, "Many

consumers are not yet aware of the additional benefits a smartwatch has to

offer. We believe this will now change, driven by the marketing efforts of the

industry this year. Added to this, there is a clear convergence of both

segments, which started in the second half of 2014 - and we see this driving

market growth. HFT manufacturers are introducing new models which incorporate

smart functions, such as reading notifications and messages. And many new

smartwatches now come with heart rate sensors and activity tracking

capabilities and are being marketed as hybrid fitness devices."

GfK expects the smartwatch market, in particular, to grow massively, boosted

also by a growing sub-segment of independent devices with include a SIM card to

connect directly to cellular networks - making these more akin to existing

smart phones. GfK's survey[1] found that over half (56 percent) of smartphone

owners interviewed across five countries see this as an important capability

that makes them more likely to buy a smartwatch, as it gives them the freedom

to leave their smart phone at home. In addition wearable growth is likely to be

driven by more fashionable designed devices (e.g. analogue smartwatches) or

sensors included in jewelry, which will be more appealing to female consumers -

an important segment which has remained almost untapped so far.

The biggest contribution to these global volumes is not surprisingly coming

from the developed regions. In particular Western Europe will catch up with

North America, which predominantly drove market growth in the past.

                               Smartwatch    Health & Fitness Tracker

    Sales units (mn)          2014   2015           2014         2015

    W. Europe                  0.8    5.4            4.0          7.1

    Dev. APAC                  0.8    5.3            2.5          4.5

    N. America                 1.2    7.4            4.8          8.5

    Developed regions          2.8   18.1           11.3         20.1

    C&E. Europe                0.2    1.3            0.6          1.1

    China                      0.5    3.6            0.9          2.3

    Emg. APAC                  0.2    1.4            0.2          0.4

    S. America                 0.1    0.6            0.2          0.5

    ME & Africa                0.2    1.1            0.3          0.6

    Emerging regions           1.2    8.0            2.2          4.9

    Global                     4.0   26.1           13.5         25.0

Table 2: GfK estimated regional sales by volume[2]

Although Western European markets, like many other regions, did not see the

expected uptake for the first three quarters of 2014, volumes jumped in the

fourth quarter - driven by strong holiday sales and new model launches by known

manufacturers. In Europe's biggest markets, Germany, Great Britain and France,

actual sales[3] in Q4 accounted for 36 percent of the total volume sold in

2014. This leads to the conclusion that wearables are a popular gift during the

holiday season and provide an optimistic outlook for 2015.

About the surveys

[1]GfK self-funded survey of 5000 smartphone owners in China, Germany, South

Korea, UK and US. Online interviews were conducted in October 2014. The study

findings are available (upon free registration) here:

http://www.gfk.com/Industries/technology/Pages/Wearables.aspx

[2]GfK global trends and forecasting data.

[3]GfK retail sales data, tracking actual sales of wearables across 30

countries.

Press contact: Amanda Martin, Global PR, +44(0)7919-624-688,

Amanda.Martin@gfk.com

SOURCE: GfK