Wearable Technology - UK - November 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Smartwatches driving strong growth in wrist-worn wearables market
Figure 1: Estimated unit sales of wrist-worn wearable devices, by product category, 2016-19
More manufacturers offering smart earbuds amid growing consumer interest
Concerns over privacy could hold back sales of new connected wearables
Google acquires Fitbit for $2.1 billion
Companies and brands
Amazon unveils Alexa-supported ring and glasses
Nubia releases ‘wearable phone’ smartwatch called Nubia Alpha
The consumer
Growth in all wearables particularly smart earbuds
Figure 2: Ownership of wearable devices, September 2018 and August 2019
Significant increase in intent to purchase wearables
Figure 3: Intent to purchase wearables in next year, September 2018 and August 2019
Interest grows in using wearables for payments, security and IoT
Figure 4: Functions of smart wearables, August 2019
Apple leads smartwatch market
Figure 5: Brand of smartwatch, August 2019
Fitbit dominates sports watches industry
Figure 6: Brand of fitness bands/sports watches, August 2019
Increase in frequency of use of wearables
Figure 7: Frequency of use of smartwatch, sports watch or fitness tracker, September 2018 and August 2019
Social media use on smartwatches rises significantly
Figure 8: Most popular activities on smartwatch, September 2018 and August 2019
Almost two thirds of smartwatches connected to a network provider
Figure 9: Smartwatch cellular connectivity, August 2019
Consumers still see smartwatches as too expensive and less stylish than normal watches
Millennials most likely to value battery life in a smartwatch
Figure 10: Opinions on smartwatch stylishness, battery life and cost, August 2019
What we think
ISSUES AND INSIGHTS
Opportunity to offer deep app integration with smart earbuds
The facts
The implications
Extending the smart functionality of fitness trackers is likely to appeal
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Smartwatches driving strong growth in wrist-worn wearables market
More manufacturers offering smart earbuds amid growing consumer interest
Concerns over privacy could hold back sales of new connected wearables
Manufacturers increasingly blurring the lines between fitness tracker and sports watch
Google acquires Fitbit for $2.1 billion
MARKET SIZE AND SEGMENTATION
Smartwatches drive strong growth in wrist-worn wearables market
Figure 11: Estimated unit sales of wrist-worn wearable devices, by product category, 2016-19
Manufacturers increasingly blurring the lines between fitness tracker and sports watch
MARKET DRIVERS
More manufacturers offering smart earbuds amid growing consumer interest
Concerns over privacy could hold back sales of new connected wearables
Wearables to benefit from increasing number of consumers with connected home devices
Google acquires Fitbit for $2.1 billion
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Tech giants including Google and Amazon enter smart earbuds market
Amazon unveils Alexa-supported ring and glasses
Apple releases second-generation AirPods and Apple Watch Series 5
Snapchat announces upcoming Spectacles 3 with 3D cameras
Samsung unveils new smartwatches and fitness trackers including Galaxy Watch Active
Nubia releases ‘wearable phone’ smartwatch called Nubia Alpha
LAUNCH ACTIVITY AND INNOVATION
Tech giants including Google and Amazon enter smart earbuds market
Galaxy Buds
Microsoft Surface Earbuds
Powerbeats Pro
Amazon Echo Buds
Google Pixel Buds
Amazon unveils Alexa-supported ring and glasses
Consumers may be more receptive to Amazon’s approach to smart glasses
Google announces Google Glass Enterprise Edition 2
Apple releases second-generation AirPods and Apple Watch Series 5
Figure 12: ‘Hey Siri’ functionality on Apple’s second-generation AirPods
Snapchat announces upcoming Spectacles 3 with 3D cameras
Samsung unveils new smartwatches and fitness trackers including Galaxy Watch Active
Figure 13: Samsung Galaxy Watch Active, Galaxy Fit, Galaxy Fit e and Galaxy Buds
Nubia releases ‘wearable phone’ smartwatch called Nubia Alpha
Figure 14: Nubia Alpha
Nubia Alpha presents possible future for smartwatches
THE CONSUMER – WHAT YOU NEED TO KNOW
Growth in all wearables particularly smart earbuds
Significant increase in intent to purchase wearables
Interest grows in using wearables for payments, security and IoT
Apple leads smartwatch market
Fitbit dominates sports watches industry
Increase in frequency of use of wearables
Social media use on smartwatches rises significantly
Almost two thirds of smartwatches connected to a network provider
Consumers still see smartwatches as too expensive and less stylish than normal watches
Millennials most likely to value battery life in a smartwatch
OWNERSHIP OF WEARABLE DEVICES
Growth in all wearables but particularly smart earbuds
Figure 15: Ownership of wearables, August 2019
Figure 16: Ownership of wearable devices, September 2018 and August 2019
INTENT TO PURCHASE WEARABLE DEVICES
Significant increase in intent to purchase wearables
Figure 17: Intent to purchase wearables in next year, August 2019
Figure 18: Intent to purchase wearables in next year, September 2018 and August 2019
Almost half of Generation Z intends to buy smart earbuds
Figure 19: Generation Z and Millennials’ intent to purchase wearables, August 2019
Most consumers currently disinterested in smart glasses
Figure 20: Interest in purchasing smart glasses in the future, August 2019
Consumers most likely to be interested in using smart glasses for pictures
Figure 21: Use cases of smart glasses, August 2019
POTENTIAL USE OF WEARABLE DEVICES
Interest grows in using wearables for payments, security and IoT
Figure 22: Functions of smart wearables, September 2018 and August 2019
Generation Z driving interest in contactless payments via wearables
Figure 23: Interest in mobile payments, by generation, August 2019
BRAND AND SOURCE OF PURCHASE FOR WRIST-WORN WEARABLE
Apple leads smartwatch market
Figure 24: Brand of smartwatch, August 2019
Fitbit dominates sports watches industry
Figure 25: Brand of fitness bands/sports watches, August 2019
Older Millennials most likely to have bought their smartwatch or sports watch themselves
Figure 26: Acquisition of smartwatch, sports watch or fitness tracker, August 2019
Consumers most likely to purchase via an online retailer
Figure 27: Location of purchase for smartwatch, sports watch or fitness tracker, August 2019
USE OF SMARTWATCHES AND FITNESS BANDS
More consumers using their wrist-worn wearables frequently
Figure 28: Frequency of use of smartwatch, sports watch or fitness tracker, September 2018 and August 2019
Social media use on smartwatch rises significantly
Figure 29: Most popular activities on smartwatch, September 2018 and August 2019
Almost two thirds of smartwatches connected to a network provider
Figure 30: Smartwatch cellular connectivity, August 2019
ATTITUDES TOWARDS SMARTWATCHES
Consumers still see smartwatches as too expensive
Six in 10 think normal watches are more stylish
Millennials most likely to value battery life in a smartwatch
Figure 31: Opinions on smartwatch stylishness, battery life and cost, August 2019
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology