According to the most recent forecast data from the International Data Corporation (IDC) Worldwide Quarterly Wearable Device Tracker, vendors will ship a total of 45.7 million units in 2015, up a strong 133.4% from the 19.6 million units shipped a year before. By 2019, total shipment volumes are forecast to reach 126.1 million units, resulting in a five-year compound annual growth rate (CAGR) of 45.1%.
Propelling the market higher this year is an increased focus on smart wearables, which are devices capable of running third-party apps. These include devices like the Apple Watch, Moto 360, and Samsung’s Gear watches. The total volume of smart wearables will reach 25.7 million units in 2015, up a whopping 510.9% from the 4.2 million units shipped in 2014. Basic wearables, or those devices that do not run third party applications, will grow from 15.4 million units in 2014 to 20.0 million units in 2015, resulting in 30.0% year-over-year growth.
“Smart wearables are about to take a major step forward with the launch of the Apple Watch this year,” said Ramon Llamas, Research Manager with IDC’s Wearables team. “The Apple Watch raises the profile of wearables in general and there are many vendors and devices that are eager to share the spotlight. Basic wearables, meanwhile, will not disappear. In fact, we anticipate continued growth here as many segments of the market seek out simple, single-use wearable devices.”
Wrist-worn wearables will account for more than 80% of all wearable device shipments throughout the forecast.Unsurprisingly, wrist-worn wearables will account for more than 80% of all wearable device shipments throughout the forecast. Behind these products are modular wearable devices, or those devices that can be worn on any part of the body with a clip or a strap.
Clothing is the third category and is expected to grow the fastest as companies embed items like shirts, socks, hats, and other products with computing power. On the other hand, eyewear is a smaller category, which IDC expects to first catch on among enterprise users within select vertical markets. Finally, earwear will comprise a small part of the overall market as earphones expand from audio to include health and fitness features.
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% |
“The explosion of wearable devices was clearly led by fitness bands, which until recently commanded prices that provided comfortable margins, but those days are changing,” said Ryan Reith, Program Director with IDC’s Worldwide Quarterly Device Trackers. “The price of these fitness bands have come down so significantly in some markets that smartphone OEMs are now bundling them with smartphones at little cost. Meanwhile, the market is quickly shifting toward higher-priced devices that offer greater functionality.”