While wrist-worn wearables accounted for the majority of the market with 63.2% share, ear-worn devices experienced the fastest growth (135.1% YoY).
The company has found that Q4 2017 was the largest fourth quarter on record with $2.3B of funding raised across 227 deals.
This year, the research firm predicts vendors shipping a total of 121.7M wearable devices, marking a 16.6% increase from the 104.4M units shipped in 2016.
Device shipments grew 10.3% year over year to hit 26.3 million units during the second quarter of 2017; smartwatches grew 60.9%.
That's up from $3 billion from 286 deals in the same period last year, representing a 36 percent year-over-year growth.
The wearables market is poised to reach a total of 240.1 million units shipped in 2021, resulting in a five-year CAGR of 18.2%.
The amount of cash invested in digital health companies has almost doubled quarter-over-quarter (QoQ), going from $845 million in 159 deals in Q4 2016.
Worldwide wearable device shipments will grow from 102.4 million in 2016 to 237.5 million in 2021, representing a five-year CAGR of 18.3%.
The entire sector received $18.5B in VC funding and almost $7.5B in debt and public market financing, bringing the total funding for the sector to $26B.
Also, 77% of respondents would use virtual services to track health indicators like blood pressure and glucose levels; and 76% for follow-up appointments.