Table of Contents
Executive Summary
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- The issues
- Crowded field, limited recognition
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- Figure 1: Brand ownership and perception, September 2015
- Smartphones a challenge to overcome
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- Figure 2: Use of smartphone when exercising, September 2015
- Minority of adults typically wear a watch or jewelry
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- Figure 3: Attitudes toward watches and jewelry, September 2015
- The opportunities
- Everybody runs
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- Figure 4: Participation in sports, September 2015
- Total addressable market composes majority of online adults
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- Figure 5: Attitudes toward fitness and fitness products, September 2015
- Gift market opportunities nearly as large as sales for personal ownership
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- Figure 6: Intent to purchase wearables, September 2015
- What it means
The Market – What You Need to Know
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- Atypical growth rates show acceleration 2013-15
- Smartwatches propelling sales
- Fitness trackers largest segment
- Majority of adults physically active
Market Size and Potential
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- Sales pass $7 billion
- Growth potential for wearable cameras
- Growth potential for smartwatches
- Growth potential for fitness trackers
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- Figure 7: Estimated US manufacturer sales of wearable technology, at current prices, 2012-15
Market Breakdown
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- Smartwatch closing in on $2 billion in 2015
- Fitness trackers approach $4 billion
- Most rapid growth for wearable cameras in rear view mirror
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- Figure 8: Estimated US manufacturer sales of wearable technology, by segment, 2014 versus 2015
Market Perspective
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- Dedicated hardware competes with smartphone apps
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- Figure 9: Use of smartphone when exercising, September 2015
Market Factors
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- Universal smartphone penetration a perk and a problem
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- Figure 10: Ownership of phones, tablets, and computers, August 2015
- Americans like to be active
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- Figure 11: Participation in sports, September 2015
- Multiple sport athletes buy in
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- Figure 12: Ownership of wearables, by number of sports played multiple times per month, September 2015
- Elevated participation among younger adults
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- Figure 13: Participation in sports at least multiple times per month, by age, September 2015
- Elevated participation among higher-income groups
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- Figure 14: Participation in sports at least multiple times per month, by household income, September 2015
- Whites, Asians more likely to be active
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- Figure 15: Participation in sports at least multiple times per month, by race/Hispanic origin, September 2015
- Gifting
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- Figure 16: Total US retail sales in November and December, at current prices, 2008-15
Key Players – What You Need to Know
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- Sales blossom at GoPro, Fitbit
- Foreign powerhouses need to invest in US awareness
- Fashion at the fore
What’s Working?
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- Early-to-market leaders retain rapid growth
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- Figure 17: Global sales of wearable technology, by brand, 2012-15
- Smartphone titans take on smartwatch
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- Figure 18: Smartwatch ownership and intent to purchase, by brand, September 2015
What’s Struggling?
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- Ad buys pay off
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- Figure 19: Brand ownership and familiarity, September 2015
What’s Next?
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- Lines blur between segments
- Fitness tech gets fashionable
- Advances in tracking sleep
- Working with “Little Data”
- Corporate and health insurance subsidies
The Consumer – What You Need to Know
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- Ownership revving up among young and high-income
- Intent to purchase nearly as high as ownership
- Expected spend shows understanding of market
- One in three adults exhibit an interest in synch with fitness tracking
Participation in Sports
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- Running and walking most popular fitness activities
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- Figure 20: Participation in sports multiple times per month, September 2015
- Niche markets add up
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- Figure 21: Participation in outdoor sports multiple times per month, September 2015
- Fitness classes most popular with women 18-54
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- Figure 22: Participation in sports multiple times per month, by gender and age, September 2015
- Young men head outdoors
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- Figure 23: Participation in outdoor sports multiple times per month, by gender and age, September 2015
- Hispanics lead in sports participation
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- Figure 24: Participation in sports multiple times per month, by race/Hispanic origin, September 2015
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- Figure 25: Participation in outdoor sports multiple times per month, by race/Hispanic origin, September 2015
The Fashion Challenge
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- Styling a blight to most
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- Figure 26: Attitudes toward watches and jewelry, September 2015
- Use of watches less common among young adults
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- Figure 27: Use of watches, by age, September 2015
- Younger adults more sold on current designs
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- Figure 28: Appeal of fitness band styling, by age, September 2015
Ownership of Wearable Tech
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- Adoption unlikely to reach majority of adults
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- Figure 29: Ownership of wearable tech, September 2015
- Young adults from $75K+ households adopted early
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- Figure 30: Ownership of wearable tech, by age and income, September 2015
- Urbanites step into watches, focus on Apple
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- Figure 31: Ownership of smartwatches/GPS watches, by area, September 2015
Intent to Purchase Wearable Tech
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- Equal intent to buy smartwatches and fitness trackers
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- Figure 32: Intent to purchase wearable tech as gifts and for personal usage, September 2015
- Intent to purchase pinned on age
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- Figure 33: Intent to purchase wearable tech, by age and income, September 2015
- Urbanites more inclined to buy
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- Figure 34: Intent to purchase wearable tech, by area, September 2015
- Uptick in interest in smartwatches among Hispanics
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- Figure 35: Intent to purchase wearable tech, by Hispanic origin, September 2015
Interest in Fitness Tech Hardware
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- Appearance not superficial
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- Figure 36: Wearable tech product ownership and intent to purchase – CHAID – Tree output, September 2015
- Access to gyms critical
- Culture more important than demographics
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- Figure 37: Product ownership and intent to purchase – CHAID – Tree output, September 2015
Historic Gifting and Intent to Gift
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- Low historical levels of gifting for fitness trackers and smartwatches
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- Figure 38: Gifting of wearable tech, September 2015
- Gifting trends upward with household income
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- Figure 39: Gifting of wearables, by household income, September 2015
- Parents more likely to gift
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- Figure 40: Gifting of wearables, by parental status, September 2015
- Intent to gift higher
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- Figure 41: Intent to purchase wearables, September 2015
- Appropriate gift recipients easy to think of
Expected Spend on Purchases
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- Products priced right
- Apple likely priced out of gift purchases
- Opposing trend for fitness trackers
- Placing bets in the middle
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- Figure 42: Average expected spend on wearables, September 2015
Interest in Tracking Physical Activity
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- Interest in losing weight top potential driver for sales
- Sharing a nonstarter
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- Figure 43: Attitudes toward fitness and fitness products, September 2015
- Based on interests, women to pull further ahead
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- Figure 44: Attitudes toward fitness and fitness products, by gender, September 2015
- Seniors need to know
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- Figure 45: Attitudes toward health tracking, by age, September 2015
- Getting on the ground with Hispanics and Blacks
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- Figure 46: Attitudes toward fitness and fitness products, by race/Hispanic origin, September 2015
- Focusing marketing on pedometer functions to be avoided
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- Figure 47: Attitudes toward tracking walking, by generation, September 2015
Interest in Smartwatch Features
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- Smartwatch features enticing to 19%
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- Figure 48: Interest in smartwatch features, September 2015
- Young men top target for smartwatch marketing
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- Figure 49: Interest in smartwatch features, by gender and age, September 2015
- Asians most enthusiastic about smartwatch features
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- Figure 50: Interest in smartwatch features, by race/Hispanic origin, September 2015
- Opposition to adopting smartwatches more prevalent than interest in them
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- Figure 51: Attitudes to smartwatches and new technology, September 2015
- Attitudes trend with age
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- Figure 52: Attitudes to smartwatches and new technology, by age, September 2015
Interest in Monitoring Sleep
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- Sleep issues trouble 60% of adults
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- Figure 53: Sleep issues, by gender, November 2014
- Youngest adults most likely to report difficulties
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- Figure 54: Sleep issues, by age, November 2014
- One in three worry about sleep quality
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- Figure 55: Concern over quality of sleep, and interest in monitoring sleep, September 2015
- Youngest adults most likely to be willing to wear a device to bed
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- Figure 56: Interest in monitoring sleep, by age, September 2015
- Women more interested in monitoring sleep
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- Figure 57: Interest in monitoring sleep, by gender, September 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- CHAID analysis methodology
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Consumer Tables
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- Figure 58: Attitudes toward fitness and fitness products, September 2015
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