The global Smartwatch market will grow to US$32.9 billion by 2020, said Allied Market Research(AMR) in its new report. The segment is expected to grow at a CAGR of 67.6% from 2014 to 2020 as the smart wearable sector continues to expand.
Within the smartwatch market, the 'extension Smartwatch', a smartwatch which is paired with another connected smart device such as a smartphone is expected to dominate the market, having taken approximately 4/5th of the revenue generated by the global smartwatch market in 2013, said AMR. The standalone smartwatch which boasts its own wireless connectivity and SIM, however, is expected to swiftly take over and match the extension smartwatch market size by 2017, it added.
AMR also said that although the Android operating system is the preferred choice among smartwatches, Samsung is expected to refresh its offerings of the Galaxy Gear by replacing the Android OS with Tizen, a Samsung platform. According to AMR, North America remains the highest revenue-generating region, with an expected turnover of $11.2 Billion by 2020. During the same tenure, China will evolve as a key manufacturer of low cost smartwatches, said AMR.
In terms of smartwatch applications, personal assistance applications which contributed to nearly half of the overall smartwatch application market by value in 2013 is expected to remain as mainstream applications for smartwatch users, while wellness applications, the second most dominant domain for the market will witness a steady growth during the forecast period due to the adoption of wellness monitoring devices, said AMR.