The entry of Chinese electronics manufacturers in smartwatch market is expected to result in mass production of smartwatches helping low-end smartwatches segment to grow, in one of the key trends that will drive global market into the $29.6 billion region by 2020, according to a new report.

The global smartwatch market was valued at $ 701.2 Mn in 2013 and is estimated to grow at a CAGR of 53.6% during the forecast period from 2014 to 2020.

Rise in smartphone and internet penetration along with the changing technological preferences of young population has emerged as the most significant growth driver for the global smartwatch market. In 2013, North America was the largest market for smartwatch with a share of 34.5% in terms of revenue due to the growing awareness towards health and early adoption of new products and technology.[blockquote right=”pull-right”]”Most of the smartwatch manufacturers have their offerings in this price range and the trend to use smartwatch as a companion device is enabling the growth of mid-end smartwatches segment. However, as the use of smartwatch is diverging from just a companion device to fitness tracking device, high-end smartwatches segment is expected to witness strong growth in the next few years.“[/blockquote]

Mid-end smartwatches was the largest segment in terms of revenue in 2013 and accounted for around 44% share of the total smartwatch market. Most of the smartwatch manufacturers have their offerings in this price range and the trend to use smartwatch as a companion device is enabling the growth of mid-end smartwatches segment. However, as the use of smartwatch is diverging from just a companion device to fitness tracking device, high-end smartwatches segment is expected to witness strong growth in the next few years.

High-end smartwatches segment accounted for around 17% share of the total smartwatch market in 2013. Moreover, companies such as Apple Inc., Samsung Electronics Inc., and Pebble Technology Corporation are focusing on the development and launch of their high-end smartwatches resulting in strong growth of this segment. In 2013, low-end smartwatches segment accounted for around 39% share of the total smartwatch market. However, entrance of Chinese electronics manufacturers in smartwatch market is expected to result in mass production of smartwatches helping low-end smartwatches segment to grow.

Based on the operating systems used, the global smartwatches market is segmented into Android Wear, Watch OS (iOS), and others. Other operating systems used in smartwatches include Tizen OS, Pebble OS, Linklt OS among others. Since the smartwatch running on Android Wear OS were commercialized in 2014, other OS segment comprising Tizen OS, Pebble OS, Linklt OS, etc. was the major contributor to the global smartwatch market in 2013.

However, in 2014, Google Inc. launched Android Wear OS focusing on wearable devices. Furthermore, the market is witnessing growing demand for Android Wear based smartwatches due to high number of available applications and continuous up-gradation support from Google Inc. Android Wear OS segment is anticipated to show highest growth rate over the forecast period from 2014 to 2020, growing at a CAGR of 57.9% during the period from 2014 to 2020. Moreover, there are high numbers of Android OS based smartphones present in the market, which is expected to help Android Wear OS based smartwatches segment.

Key players in the global smartwatch market include Pebble Technology Corporation, Samsung Electronics Co. Ltd., Apple Inc., Nike Inc., Garmin Ltd., Sony Electronics Inc., Fitbit Inc., Martian Watches, ConnecteDevice Ltd., and Qualcomm Incorporated. The market is witnessing entry of smartphone manufacturers such as Apple Inc., Samsung Electronics Inc., and Sony Corporation into smartwatch market. Furthermore, the market is anticipated to witness entrance of Chinese electronics manufacturers which would intensify the competition among market players in near future.