Table of Contents
Overview
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- What you need to know
- Products covered in this report
Executive Summary
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- The market
- Sales of wrist-worn wearables approach 4 million in 2017
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- Figure 1: Estimated unit sales of wrist-worn wearable devices, by product category, 2016-17
- Worldwide volumes buoyed by low price offerings in Asian markets
- Smartwatches offer an avenue for new app revenue
- Cheap body-worn cameras prompt strong worldwide growth
- Child-friendly smartwatches provide an entry-level device before smartphones
- Wearables in healthcare
- Companies and brands
- Apple joins companies offering smartwatches with LTE
- New sensors for measuring stress
- The consumer
- The gap is closing between fitness bands and smartwatches
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- Figure 2: Ownership of portable devices, September 2017
- Consumers consider smartwatches over fitness trackers
- Heart rate sensor accuracy is important to consumers
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- Figure 3: Wearable devices that consumers are considering purchasing, September 2017
- Health and wellness monitoring the most popular use case
- Connected home compatibility trumps sports tracking for tech enthusiasts
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- Figure 4: Interest in uses of wearable technology, September 2017
- Smartwatches unlikely to replace mobiles except in specific circumstances
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- Figure 5: Consumer attitudes towards wearable technology, September 2017
- The majority of consumers want ‘normal’ looking smartwatches
- Data collection and sharing
- Features of smartwatches aren’t attractive enough yet
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- Figure 6: Consumer perceptions of the benefits of wearable technology, September 2017
- Consumers are hopeful about the future of wearable technology
- Data sharing must be approached cautiously
- What we think
Issues and Insights
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- Broader healthcare tracking options appeal to consumers
- The facts
- The implications
- Moving beyond the early-adopter market
- The facts
- The implications
The Market – What You Need to Know
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- Wrist-worn wearables show steady UK growth in 2017
- Smartwatches stretch past fitness trackers
- Worldwide shipments of fitness trackers bolstered by Asian markets
- Smartwatches focus on sport, whilst fitness trackers add smart functionality
- Healthcare tracking a key driver for wearable technology
- A smartwatch market for children is developing
Market Size and Segmentation
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- Sales of wrist-worn wearables approach 4 million in 2017
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- Figure 7: Estimated unit sales of wrist-worn wearable devices, by product category, 2016-17
- Worldwide volumes buoyed by low price offerings in Asian markets
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- Figure 8: Forecast volume sales of wearable device worldwide (millions of units), 2016-18
- Smartwatches offer an avenue for new app revenue
- Body-worn cameras remain a niche device with few use cases
Market Drivers
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- More advanced features across the board
- New users take advantage of discounted models
- Child-friendly smartwatches provide an entry-level device before smartphones
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- Figure 9: The VTech Kidizoom Smart Watch takes photos and allows filters to be applied
- Wearables in healthcare
- Headphones getting smarter
- Smart clothing and jewellery yet to take off
Companies and Brands – What You Need to Know
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- Traditional fashion brands adopting smartwatch technology
- Apple joins companies offering smartwatches with LTE
- Insurers add health tracking incentives to their products
- New sensors for measuring stress
- Wearables broaden their appeal
Launch Activity and Innovation
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- Traditional watch manufacturers add Android Wear
- Apple watch adds cellular connectivity
- Fitbit enters the smartwatch market
- Healthcare tracker Snap40 gets £1 million NHS funding
- Vitality offers heavily discounted Apple Watch
- New sensors provide stress and mindfulness tracking
Advertising and Marketing Activity
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- Apple and Fitbit lead adspend
- Sponsorship deals get wearable technology seen
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- Figure 10: Total above-the-line, online display and direct mail advertising expenditure on smartwatches and fitness trackers, Dec 2016-Nov 2017
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Smartwatch ownership continues to rise
- Wearable cameras remain a niche device primarily for under-34s
- Smartwatches appeal to users above other wearable technology
- Health and wellness most popular use for wearable technology
- The majority of consumers want ‘normal’ looking smartwatches
- Features of smartwatches aren’t attractive enough yet
Ownership and Acquisition
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- The gap is closing between fitness bands and smartwatches
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- Figure 11: Ownership of portable devices, September 2017
- Wrist-worn device ownership peaks in 25-34-year-olds
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- Figure 12: Smartwatch and fitness band/sports tracker ownership, by gender, September 2017
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- Figure 13: Smartwatch ownership, by age bracket, September 2017
- Figure 14: Fitness band/sports watch ownership, by age bracket, September 2017
- Ownership of wearable cameras
- Clip-on activity trackers and heart rate monitor chest straps
Purchasing Consideration
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- Consumers consider smartwatches over fitness trackers
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- Figure 15: Wearable devices that consumers are considering purchasing, September 2017
- Fitness trackers appeal to a wide age range
- Heart rate sensor accuracy is important to consumers
- Wearable cameras a popular device, but consumers don’t think their activities are worth filming
- Smart earbuds least popular of wearable devices
- Smartwatches and wearable cameras popular amongst those considering a single wearable device
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- Figure 16: Proportion of users considering a wearable technology device for purchase, by the number of wearable devices selected, September 2017
Uses of Wearable Technology
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- Health and wellness monitoring the most popular use case
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- Figure 17: Interest in uses of wearable technology, September 2017
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- Figure 18: Measuring/tracking electronically and interest in measuring/tracking electronically aspects of health and lifestyles, August 2017
- Connected home compatibility trumps sports tracking for tech enthusiasts
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- Figure 19: Interest in possible wearable technology usage, by number of selected uses, September 2017
Attitudes towards Wearables
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- Smartwatches unlikely to replace mobile except in specific circumstances
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- Figure 20: Consumer attitudes towards wearable technology, September 2017
- The majority of consumers want ‘normal’ looking smartwatches
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- Figure 21: Preference for a smartwatch that resembles a traditional watch, by age category, September 2017
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- Figure 22: Design of the Samsung Gear s3 (left) and the Apple Watch Series 3 (Right)
- Data collection and sharing
Perceived Benefits of Wearable Technology
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- Features of smartwatches aren’t attractive enough yet
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- Figure 23: Consumer perceptions of the benefits of wearable technology, September 2017
- Consumers are hopeful about the future of wearable technology
- Data sharing must be approached cautiously
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Key Driver Analysis
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- Methodology
- Step I. Demographic indicators:
- Step II. Attitudinal indicators:
- Interpretation of results
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- Figure 24: Key drivers of smartwatch purchasing consideration – Key driver output, October 2017
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- Figure 25: Key drivers of fitness band/sports watch purchasing consideration – Key driver output, October 2017
- Figure 26: Key drivers of smartwatch purchasing consideration, October 2017
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- Figure 27: Key drivers of fitness band/sports watch purchasing consideration, October 2017
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