GfK Forecasts 51 Million Wearables Bought Globally in 2015

Nuremburg, Germany (ots/PRNewswire) -

- 17.6 million smartwatches and health and fitness trackers (HFT) bought
worldwide last year
- HFT accounted for 77 percent of overall volume sold
- GfK predicts smartwatch sales will overtake HFT sales in 2015

GfK's trends data shows that 13.5 million health and fitness
trackers were sold globally last year, compared to 4.1 million
smartwatches. With major companies expected to enter the market this
year, GfK predicts that the combined market will leap to 51.2 million
sales in 2015 - three times the size of 2014 - with both segments
showing equal importance in this converging market.

Sales units (mn) 2014 2015
Smartwatch 4.0 26.1
Health & Fitness Tracker 13.5 25.0
Total 17.6 51.2

Table 1: GfK estimated global sales by volume[2]

Last year, actual sales of health and fitness trackers (HFT)
easily outstripped smartwatches. This was driven, in part, by the
significantly lower average sales price of HFT, making these devices
more affordable than full-feature smartwatches. Another reason for
the higher popularity of HFT (according to a GfK survey of 5000
smartphone owners across five countries[1]) is the fact that a
majority of consumers see activity tracking as being the most
important function of a wearable - including a smartwatch - at the
present time.

Dr Jan Wassmann, Global Product Manager for Wearables at GfK,
comments, "Many consumers are not yet aware of the additional
benefits a smartwatch has to offer. We believe this will now change,
driven by the marketing efforts of the industry this year. Added to
this, there is a clear convergence of both segments, which started in
the second half of 2014 - and we see this driving market growth. HFT
manufacturers are introducing new models which incorporate smart
functions, such as reading notifications and messages. And many new
smartwatches now come with heart rate sensors and activity tracking
capabilities and are being marketed as hybrid fitness devices."

GfK expects the smartwatch market, in particular, to grow
massively, boosted also by a growing sub-segment of independent
devices with include a SIM card to connect directly to cellular
networks - making these more akin to existing smart phones. GfK's
survey[1] found that over half (56 percent) of smartphone owners
interviewed across five countries see this as an important capability
that makes them more likely to buy a smartwatch, as it gives them the
freedom to leave their smart phone at home. In addition wearable
growth is likely to be driven by more fashionable designed devices
(e.g. analogue smartwatches) or sensors included in jewelry, which
will be more appealing to female consumers - an important segment
which has remained almost untapped so far.

The biggest contribution to these global volumes is not
surprisingly coming from the developed regions. In particular Western
Europe will catch up with North America, which predominantly drove
market growth in the past.

Smartwatch Health & Fitness Tracker
Sales units (mn) 2014 2015 2014 2015
W. Europe 0.8 5.4 4.0 7.1
Dev. APAC 0.8 5.3 2.5 4.5
N. America 1.2 7.4 4.8 8.5
Developed regions 2.8 18.1 11.3 20.1
C&E. Europe 0.2 1.3 0.6 1.1
China 0.5 3.6 0.9 2.3
Emg. APAC 0.2 1.4 0.2 0.4
S. America 0.1 0.6 0.2 0.5
ME & Africa 0.2 1.1 0.3 0.6
Emerging regions 1.2 8.0 2.2 4.9
Global 4.0 26.1 13.5 25.0

Table 2: GfK estimated regional sales by volume[2]

Although Western European markets, like many other regions, did
not see the expected uptake for the first three quarters of 2014,
volumes jumped in the fourth quarter - driven by strong holiday sales
and new model launches by known manufacturers. In Europe's biggest
markets, Germany, Great Britain and France, actual sales[3] in Q4
accounted for 36 percent of the total volume sold in 2014. This leads
to the conclusion that wearables are a popular gift during the
holiday season and provide an optimistic outlook for 2015.

About the surveys

[1]GfK self-funded survey of 5000 smartphone owners in China,
Germany, South Korea, UK and US. Online interviews were conducted in
October 2014. The study findings are available (upon free
registration) here:
http://www.gfk.com/Industries/technology/Pages/Wearables.aspx

[2]GfK global trends and forecasting data.

[3]GfK retail sales data, tracking actual sales of wearables
across 30 countries.

Press contact: Amanda Martin, Global PR, +44(0)7919-624-688,
Amanda.Martin@gfk.com

ots Originaltext: GfK SE
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