Wearable Technology - US - December 2016

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Unit sales pass 41 million, but growth is slowing
Figure 1: US manufacturer unit shipments of wearable tech devices, 2011-16
New technology value is doubted
Figure 2: Opposition to purchasing smartwatches and bands, September 2016
Dieters not buying in
Figure 3: Ownership of fitness trackers and smartwatches among adults dieting or watching weight, September 2016
The opportunities
The gift market
Figure 4: Receipt of fitness trackers and smartwatches as gifts, September 2016
Quantifying health
Figure 5: Interest in tracking health information, September 2016
Assisting sleep
Figure 6: Using fitness trackers and smartwatches to track sleep, September 2016
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Slow growth as updates lag
Smartwatch rising
Older adults, dieters not investing in purchases
Sports participation, gifts, drives sales
MARKET SIZE
Growth slows to 18% in 2016
Strong product lineup for the fall
Figure 7: US manufacturer unit shipments of wearable tech devices, 2011-16
MARKET BREAKDOWN
Growth slowing across categories
Figure 8: US manufacturer unit shipments, by segment, 2011-16
Trackers top segment, but smartwatch closing gap
Limited share for action cameras
In their own words
Figure 9: Market share by segment, 2016
Figure 10: Market share by segment, 2014 and 2016
MARKET PERSPECTIVE
Antagonism to new technology
Figure 11: Opposition to purchasing smartwatches and fitness bands, by age, September 2016
In their own words
Half of adults watching weight…
Figure 12: Interest in losing or maintaining weight, by key demographics, September 2016
…but dieters no more likely to own trackers/smartwatches
Figure 13: Ownership of fitness tech among adults dieting or watching weight, September 2016
Appearance matters
Figure 14: Perception of fitness trackers as attractive, by key demographics, September 2016
MARKET FACTORS
Sports participation
Figure 15: Sports participation and fitness tracker ownership by sport played, September 2016
Gifting
Figure 16: Receipt of fitness trackers as gift, by age, September 2016
Figure 17: Receipt of smartwatch as gift, September 2016
Quantification of health information
Figure 18: Ownership and intent to purchase wearable tech, by interest in health information and tracking steps, September 2016
Tracking sleep
Figure 19: Use of trackers and smartwatches while sleeping, September 2016
KEY PLAYERS – WHAT YOU NEED TO KNOW
Leaders struggle with growth
Smaller brands outgunned
New form factors may propel fitness trackers
WHAT’S WORKING?
Fitbit, Garmin continue to see growth
Figure 20: Fitbit, GoPro, and Garmin sales* 2012-16
Apple dominant in watches, but sales see decline
Nike+, Fitbit, Under Armour carry top consideration for purchase
Figure 21: Ownership and willingness to purchase wearable tech brands, September 2016
WHAT’S STRUGGLING?
Subscription and entertainment services
Marketing budgets problematic for smaller brands
Figure 22: Awareness and ownership of wearable tech brands, September 2016
WHAT’S NEXT?
GPS, waterproofing, independent calling
Jewelry, ear buds, and glasses
In their own words
Cameras land in drones and glasses
THE CONSUMER – WHAT YOU NEED TO KNOW
One in four plan to buy a smartwatch
Familiarity, research carry influence
Users serious about reaping fitness benefits
OWNERSHIP AND INTENT TO PURCHASE
Intent to purchase rivals ownership
Figure 23: Ownership and intent to purchase wearable tech, September 2016
Asians, Hispanics, urbanites intend to purchase
Figure 24: Intent to purchase smartwatches and wearable cameras, indexed among Asians, Hispanics, and urbanites, September 2016
Young men are promising buyers
Figure 25: Intent to purchase smartwatches and wearable cameras, indexed by gender/age, September 2016
Premium pricing hazardous for middle-income buyers
Figure 26: Intent to purchase smartwatches and wearable cameras by household income, September 2016
CHAID analysis demarcates distinctions by product segments
Attitudes delineate interest in fitness trackers
Figure 27: Product ownership and intent to purchase – CHAID – Tree output, September 2016
Age and income demonstrative for watches and cameras
Figure 28: Product ownership and intent to purchase – CHAID – table output, September 2016
PURCHASING DECISIONS
Limited interest in low-end options
Figure 29: Spend on fitness trackers, by generation, September 2016
Figure 30: Spend on smartwatch, by Hispanic origin, September 2016
Younger owners make, take recommendations
Figure 31: Recommendation of fitness tech to friends/family, by generation, September 2016
Figure 32: Selection of a product friends/family owned, by age, September 2016
Research part of process for vast majority
Figure 33: Absence of research in product selection, by generation, September 2016
ATTITUDES TO SMARTWATCHES AND FITNESS TRACKERS
Function more important than form
Figure 34: Attitudes to smartwatches, by generation, September 2016
Older owners serious about fitness performance
Figure 35: Attitudes to fitness trackers, by age, September 2016
Hispanic owners bought in part out of interest in new technology
Figure 36: Attitudes to fitness trackers, by Hispanic origin, September 2016
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Qualitative research
CHAID analysis methodology
Abbreviations and terms
Abbreviations
Terms
APPENDIX – MARKET
Figure 37: US manufacturer unit shipments of wearable tech, 2011-16
APPENDIX – CONSUMER
Qualitative responses
Virtual trainers
Using technology to achieve fitness goals