Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Definition
- COVID-19: Market context
- Economic and other assumptions
Executive Summary
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- Top takeaways
- Hearable devices are the top wearable tech products owned – and offer greatest near-term opportunities
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- Figure 1: Wearable technology ownership and purchase intent, November 2020
- Smartwatch sales are cannibalizing activity tracker owners
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- Figure 2: Wearable technology ownership – hearables and wrist-worn, November 2019 vs November 2020
- Health is a top draw for the wearable device category
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- Figure 3: Attitudes toward wearable technology – health care, November 2020
- Consumer Segmentation
- Wearable tech enthusiasts account for about one third consumers
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- Figure 4: Wearable technology consumer segments, November 2020
- Market overview
- Impact of COVID-19 on wearable technology
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- Figure 5: Short-, medium- and long-term impact of COVID-19 on technology hardware and wearable technology, January 2021
- Opportunities and Challenges
- Re-emergence
- Recovery
The Market – Key Takeaways
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- Wearable tech resilient to COVID-19 impact
- Apple continues its success in the wearable category
- Garmin eclipses Samsung for second place in the smartwatch category
- Large firms adopt wearable tech to track potential COVID-19 exposure
- FDA approval could help differentiate amid greater focus on health
Market Performance Indicators
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- Market Trends
- Wearable technology market poised for continued growth
- Smartwatch adoption significantly slower than smartphone adoption
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- Figure 6: Smartphone and smartwatch adoption rates five years after major product release, Fall 2012 and November 2020
- Figure 7: Smartphone ownership, by age, 2015-20
- Impact of COVID-19 on wearable technology
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- Figure 8: Short-, medium- and long-term impact of COVID-19 on technology hardware and wearable technology, January 2021
- Lockdown
- Re-emergence
- Recovery
- Learnings from the last recession
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- Figure 9: Annual percent change in US mobile phone sales – smartphones and feature phones, 2008-12
Leading Brand Performance
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- Apple’s wearables, home and accessories unfazed by COVID-19
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- Figure 10: Apple wearables, home and accessories net revenue, 2017-20
- Figure 11: Apple wearables, home and accessories quarterly revenue, 2019-20
- Garmin’s fitness category continues to grow its small slice of the market
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- Figure 12: Garmin fitness segment annual revenues, 2015-19
- Figure 13: Garmin fitness segment quarterly revenue, 2019-20
- Fitbit hopes turnaround is just around the corner
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- Figure 14: Fitbit annual revenue, 2015-19
- Figure 15: Fitbit quarterly revenue, 2019-20
- Amazon halts its Echo Loop wearable
- Samsung’s smartphone position puts it at a disadvantage to Apple
Market Factors
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- Large firms adopt wearable technology to enforce social distancing
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- Figure 16: Kinexon sports social media posts, August 2020
- Wearable tech emphasizes health monitoring amidst COVID-19 pandemic
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- Figure 17: Current perspective on COVID-19, December 2020
- Regulators abroad take a closer look at Google Fitbit acquisition
- 5G development opens the door for AR products and further innovation
Market Opportunities
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- COVID-19 spurs interest in health monitoring and wellness
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- Figure 18: Apple Watch Series 6 email promotion, September 2020
- FDA approval on wearable devices could become standard marketing
- Expansion of contactless POS systems improve smartwatch utility
- Super Nintendo World offers glimpse into potential for AR technology
- Remote work could usher in new use cases for VR
What We’ve Been Watching – A Look Back at 2020
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- What we said in 2020 – and what’s happening now
- “Wireless is in, wired is out.”
- “Ultra-wideband technology has potential for utilization in wearables”
- “Haptic feedback could take wearable tech to another level”
- “Watch for moves by Google after the Fitbit acquisition”
- “Huami’s Amazfit low-cost alternatives could make gains”
- “Sports retailers will expand into wearable tech”
- “Repositioning wearable devices as health monitors rather than activity trackers may also drive interest.”
Companies and Brands – Key Takeaways
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- Apple continues to bring new wearables to market
- Amazon cancels Echo Loop, moves forward with Echo Frames
- Samsung looks to focus on bundling its hardware to increase market share
- Garmin continues to perform well within the fitness category
Competitive Strategies
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- Apple
- Variety in Apple Watch lineup boosts consideration
- Apple launches AirPods Max
- Amazon
- Echo Buds get a price cut, Echo Loop gets cut, Echo Frames just starting
- Samsung
- Galaxy wearable lineup goes on sale for 2020 holiday season
- Samsung and Microsoft expand partnership
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- Figure 19: Samsung Galaxy S20 FE 5G promotional email, December 2020
- Google’s Fitbit acquisition still has some last hurdles to overcome
- Garmin
- Venu Sq a low-cost option under the Garmin brand
The Consumer – Key Takeaways
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- Hearables are leading devices
- Health and exercise monitoring drive purchase intent
- Cost and utility are primary barriers to wearable tech adoption
- Health-monitoring features draw in more than eight in 10 smartwatch shoppers
- Over a third of consumers identified as wearable tech enthusiasts
The Consumer: Trend Drivers
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- Technology, Wellbeing and Rights Trend Drivers key for wearable tech
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- Figure 20: Mintel Trend Drivers and supporting pillars – Technology, Wellbeing and Rights
- Appeal of wearable tech informed by pillars Digital Entertainment and Early Adopters
- Wellbeing a primary driver behind wearable tech
- Rights will play a major role as wearable devices collect more personal information
Wearable Technology Ownership and Purchase Intent
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- Wireless hearables are leading products to wearable tech segment
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- Figure 21: Wearable technology ownership and purchase intent, November 2020
- Smartwatches are cannibalizing activity tracker owners
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- Figure 22: Wearable technology ownership – hearables and wrist-worn, November 2019 vs November 2020
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- Figure 23: Wearable technology purchase intent, November 2019-November 2020
- AirPods and Apple Watch benefiting from iPhone market share
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- Figure 24: Wearable technology owned, by smartphone brand owned, November 2020
- Wearable tech a lifestyle image product for young and wealthy
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- Figure 25: Wearable technology ownership, by age and household income, November 2020
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- Figure 26: Wearable technology purchase intent, by age and household income, November 2020
Wearable Technology Purchase Reasons
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- Exercise and fitness drive consideration for wireless hearables
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- Figure 27: Reasons for buying wireless headphones and earbuds, November 2020
- Smartwatch owners shopping for hearing devices seek connectivity and innovation
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- Figure 28: Reasons for buying wireless headphones or earbuds, by smartwatch owners, November 2020
- Health and fitness are major drivers of smartwatch appeal
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- Figure 29: Reasons for buying a smartwatch, November 2020
- Health monitoring the strongest driver for smartwatch buyers 45+
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- Figure 30: TICWRIS-Smartwatch Facebook page, May 2020
- Figure 31: Reasons for buying a smartwatch, by age, November 2020
Reasons for Not Purchasing Wearables
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- Cost of hearable devices a top barrier for non-buyers
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- Figure 32: Reasons for not planning to buy wireless headphones or earbuds, November 2020
- Consumer objections to smartwatches center on utility
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- Figure 33: Reasons for not buying a smartwatch, November 2019-November 2020
- Younger consumers waiting for a model that suits them
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- Figure 34: Reasons for not buying a smartwatch, by age, November 2020
Desired Smartwatch Features
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- Health and fitness features attract sizeable segment of smartwatch shoppers
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- Figure 35: Desired smartwatch features, November 2020
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- Figure 36: Desired smartwatch features, by age, November 2020
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- Figure 37: Attitudes toward personal health management, by smartwatch shoppers, November 2020
- “Cutting edge” battery has less appeal than general battery performance
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- Figure 38: Desired smartwatch features, November 2019
- Women prioritize calorie tracking in their smartwatch
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- Figure 39: Desired smartwatch features – calorie burn tracker, by gender, November 2020
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- Figure 40: Health management priorities, by gender and smartwatch purchasing, November 2020
- A wide variety of features broadens general appeal for smartwatches
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- Figure 41: TURF analysis – desired smartwatch features, November 2020
- Figure 42: TURF analysis – desired smartwatch features, November 2020
- Methodology
Attitudes toward Wearable Technology
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- Market is trending toward increased acceptance of wearable tech
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- Figure 43: Attitudes toward wearable technology – clothing, fashion and appeal, November 2020
- Figure 44: Attitudes toward wearable technology – clothing, fashion and appeal, by gender and age, November 2020
- Detecting potential health issues and COVID-19 are leading concerns
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- Figure 45: Attitudes toward wearable technology – health care, November 2020
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- Figure 46: Attitudes toward wearable technology – health care, by age and plans to buy a smartwatch, November 2020
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- Figure 47: Attitudes toward wearable technology – health care, by parental status, November 2020
- Virtual reality has opportunities in leisure and work
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- Figure 48: Attitudes toward wearable technology – virtual reality, November 2020
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- Figure 49: Attitudes toward wearable technology – virtual reality, by gender and age, November 2020
- Augmented reality topics draw polarizing opinions
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- Figure 50: Attitudes toward wearable technology – augmented reality, November 2020
Consumer Segmentation – Attitudes toward Wearable Technology
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- Figure 51: Wearable technology consumer segments, November 2020
- Tech Wearers (35%)
- Characteristics
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- Figure 52: Profile of Tech Wearers, November 2020
- Opportunities
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- Figure 53: Wearable technology ownership, by consumer segments, November 2020
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- Figure 54: Wearable technology purchase intent, by consumer segments, November 2020
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- Figure 55: Attitudes toward wearable technology – clothing, fashion and appeal, by consumer segments, November 2020
- Health Wearers (19%)
- Characteristics
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- Figure 56: Profile of Health Wearers, November 2020
- Opportunities
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- Figure 57: Attitudes toward wearable technology – health, COVID-19 and healthcare, by consumer segments, November 2020
- Non-Wearers (27%)
- Characteristics
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- Figure 58: Profile of Non-Wearers, November 2020
- Opportunities
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- Figure 59: Attitudes toward wearable technology – clothing, fashion and appeal, by Non-Wearers, November 2020
- Limited Wearers (19%)
- Characteristics
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- Figure 60: Profile of Limited Wearers, November 2020
- Opportunities
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- Figure 61: Attitudes toward wearable technology – AR smart glasses, by consumer segments, November 2020
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Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – TURF Analysis
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- Methodology
Appendix – Mintel Trend Drivers
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- Figure 62: Mintel Consumer Trend Drivers and Pillars
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