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
- Over 3 million wrist-worn wearables sold in the UK in 2016
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- Figure 1: Estimated unit sales of wrist-worn wearable devices, by product category, 2016
- Health and fitness tracking remains major driver
- Phablets make easily accessible wearables more compelling
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- Figure 2: Screen size of smartphone owned and future purchase intentions, December 2015
- Virtual and augmented reality to expand B2B potential of wearables
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- Figure 3: Activities interested in using a VR headset for, July 2016
- The consumer
- Consumers warm up to wearables
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- Figure 4: Ownership of wearable devices, September 2016
- Fitbit leads the UK market
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- Figure 5: Brand/type of wrist-worn wearable device owned, September 2016
- Gifting a key driver for fitness bands
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- Figure 6: Ways in which consumers got hold of the wrist-worn wearable devices owned, September 2016
- Wearables unlikely to gain mainstream appeal in the next 12 months
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- Figure 7: Proportions of consumers who plan on purchasing wearable devices within the next 12 months, by brand, September 2016
- Price is the top driver of decision in wrist-worn wearable purchases
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- Figure 8: Factors that would most influence the choice of wrist-worn wearable device to buy, September 2016
- Health remains the main driver of interest
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- Figure 9: Most interesting applications of wearable technology, September 2015 and September 2016
- Health tracking can effectively encourage data sharing
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- Figure 10: Companies with which consumers would share their personal information through a wearable device, September 2016
- Price and security equal obstacles to adoption
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- Figure 11: Attitudes towards wearable technology, September 2016
- Two in five owners have given up on their wearable device
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- Figure 12: Attitudes about usage of wearable technology after purchase, September 2016
- What we think
Issues and Insights
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- Broadening interest to increase perceived value
- The facts
- The implications
- Wearable technology needs to be a “hands-on” experience
- The facts
- The implications
- Can the workplace be a backdoor to mainstream adoption?
- The facts
- The implications
- Fostering data sharing among wearable owners
- The facts
- The implications
- Moving beyond tracking to coaching
- The facts
- The implications
The Market – What You Need to Know
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- Over 3 million wrist-worn wearables sold in the UK in 2016
- A global perspective
- Health and fitness tracking remains the major driver
- Phablets make easily accessible wearables more compelling
- e-SIMs make wearables independent from smartphones
- Virtual and augmented reality to expand the B2B potential of wearables
- Wearable gaming beyond VR headsets
Market Size and Segmentation
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- Over 3 million wrist-worn wearables sold in the UK in 2016
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- Figure 13: Estimated unit sales of wrist-worn wearable devices, by product category, 2016
- The emphasis on health is a mixed blessing
- The smartwatch segment is gaining ground
- e-SIMs should support sales in this category
- A global perspective
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- Figure 14: Forecast volume sales of wearable devices worldwide, 2015-17
- Smartwatches will lead global growth in 2017
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- Figure 15: Forecast breakdown of volume sales of wearable devices worldwide, by category, 2015-17
Market Drivers
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- Health and fitness tracking remains major driver…
- …and tech-enabled healthcare is now mainstream
- Phablets make easily accessible wearables more compelling
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- Figure 16: Screen size of smartphone owned and future purchase intentions, December 2015
- e-SIMs make wearables independent from smartphones
- Virtual and augmented reality to expand B2B potential of wearables
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- Figure 17: Activities interested in using a VR headset for, July 2016
- Wearable gaming gets a boost
Companies and Brands – What You Need to Know
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- Introducing connected health ecosystems
- Samsung enters the hearables space
- Wearables get social
- Smart coaching through wearables
- Smart clothing hits the high street
- Google’s Project Soli could revolutionise interaction with wearables
- Fitbit and Apple monopolise above-the-line adspace
Launch Activity and Innovation
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- Introducing connected health ecosystems
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- Figure 18: Under Armour’s Health box, November 2016
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- Figure 19: Philips’ HealthSuite, November 2016
- Samsung enters the hearables space
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- Figure 20: Samsung’s IconX in black, November 2016
- Wearables get social
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- Figure 21: Snap’s Spectacles, November 2016
- Smart coaching through wearables
- Smart clothing hits the high street
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- Figure 22: Commuter Jacket designed by Google and Levi's, November 2016
- Google’s Project Soli could revolutionise interaction with wearables
Advertising and Marketing Activity
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- Fitbit and Apple monopolise above-the-line adspace
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- Figure 23: Recorded above-the-line, online display and direct mail advertising expenditure on smartwatches and fitness trackers, by selected leading manufacturers and retailers, December 2015-November 2016
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Consumers warm up to wearables
- Gifting a key driver for fitness bands
- Wearables unlikely to gain mainstream appeal in the next 12 months
- Price is the top driver of decision in wrist-worn wearable purchases
- Health remains the main driver of interest
- Health tracking can effectively encourage data sharing
- Price and security equal obstacles to adoption
- Disengagement is more of a worry than a reality
Ownership and Acquisition
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- Consumers warm up to wearables
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- Figure 24: Ownership of wearable devices, September 2016
- Young men the keenest on wearables
- Fitbit leads the UK market
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- Figure 25: Brand/type of wrist-worn wearable device owned, September 2016
- Gifting a key driver for fitness bands
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- Figure 26: Ways in which consumers got hold of the wrist-worn wearable devices owned, September 2016
- Watches are popular in the workplace
Purchase Plans
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- Wearables unlikely to gain mainstream appeal in the next 12 months
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- Figure 27: Proportions of consumers who plan on purchasing wearable devices within the next 12 months, by brand, September 2016
- Smartwatches will pose a growing threat to fitness bands
- Early adopters continue to drive the market
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- Figure 28: Repertoire of wearable devices that consumers currently own and plan to buy, September 2016
Choice Factors
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- Price is the top driver of decision in wrist-worn wearable purchases
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- Figure 29: Factors that would most influence the choice of wrist-worn wearable device to buy, September 2016
- Non-owners are most worried about the cost of entry
- Smartwatches have a more complete proposition
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- Figure 30: Factor that would most influence (ie ranked first) the choice of wrist-worn wearable device to buy, by wearable devices owned, September 2016
- Consumers are not ready to compromise on functionality and style
- Continued activity in the hybrid watch sector
Wearable Applications
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- Health remains the main driver of interest
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- Figure 31: Most interesting applications of wearable technology, September 2015 and September 2016
- The health angle is key to driving interest outside the early adopters…
- …but there is a risk of creating too narrow a focus
- Depolarising interest to increase willingness to pay
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- Figure 32: Repertoire of most interesting applications of wearable technology, September 2016
- Connected homes and mobile payments will broaden appeal
- Wearables can help make sense of POS mobile payments…
- …and the range of options is expanding
- Non-health features can help convert interest into action
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- Figure 33: Most interesting applications of wearable technology, by ownership and plans to buy wearable devices, September 2016
Data Sharing
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- Consumers are very careful about sharing their data
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- Figure 34: Repertoire of companies with which consumers would share their personal information through a wearable device, September 2016
- Health tracking can effectively encourage data sharing
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- Figure 35: Companies with which consumers would share their personal information through a wearable device, September 2016
- Health concerns span the generations
- Financial institutions hold potential
- A positive outlook ahead
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- Figure 36: Companies with which consumers would share their personal information through a wearable device, by ownership and plans to buy wearable devices, September 2016
Attitudes towards Wearable Technology
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- Price and security equal obstacles to adoption
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- Figure 37: Attitudes towards wearable technology, September 2016
- Overcoming the price barrier
- Strong interest in try-before-you-buy initiatives
- Disengagement is more of a worry than a reality…
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- Figure 38: Attitudes about usage of wearable technology after purchase, September 2016
- …but the number of abandoned devices is still a real issue
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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