The smartwatch market was valued at $12.45 billion in 2017 and expected to be growing at a compounded annual growth rate (CAGR) of 16.4% during the forecast period from 2018 to 2026, according to Research and Markets (www.researchandmarkets.com).
In recent years, the functionality of watches has expanded well beyond just showing time. The introduction of the smartwatches, with its multi-functional features, has disrupted the traditional analog watch industry. The fact that, in many Asian countries, the demand for luxury Swiss watches have declined drastically as a result of more people preferring affordable timepieces such as smartwatches.
What’s more, an increasing number of smartwatch manufacturers are focusing on improving the visual aesthetics of the watches in order to present them as fashion pieces, according to Research and Markets. One of the most important factors aiding the smartwatch market growth can be attributed to the enhancement of functionalities of smartwatches, adds the research group.
Modern smartwatches have various features such as GPS, barometer, heart rate sensor, better display, and longer battery life among others. Rising net disposable income among consumers is another prominent factor contributing to the smartwatch market growth.
The manufacturers of smartwatches are continuously engaged in research and development activities. These activities are directed towards adding new functionalities as well as improving the existing functionalities. In the coming years, the online sales channel expected to witness the fastest growth rate, according to Research and Markets. The availability of better offers in the form of discounts coupled with ease of shopping is expected to lead an increasing number of consumers to choose online platforms over offline platforms, the research group adds.