Smartwatch industry is presenting an optimistic picture on the growth of this device segment. With smart wearables increasing at an alarming rate, smartwatches have gradually made their presence felt in the customer circles. Companies are now doing ample research on providing more for less and in the wake of such developments, customers are spoilt for choices. Pricing, status, need and want philosophy are all playing a vital role in deciding the fate of this smart wearable.
North America Leads the Revenue Segment With North America being a major target region for companies like Apple, the revenue generated here is higher than any other region. Brand loyalty and status have helped in defining the market aptly and companies are equally cashing in on this customer behavior. Growing at a healthy CAGR of more than 50% the revenues for this region will keep increasing until 2021.
APAC Will Lead the Shipment Segment Dominated by China for low cost smartwatches and infrastructure ready South Korea, APAC will witness the highest growth rate for shipment of smartwatches globally. However, with durability and costs inversely acting in the favor of companies, customers are willing to try using a smartwatch which does not burn their wallet. More than 55% CAGR is expected to run the shipment segment for this region.
Average Pricing Will Dip Encouraging Higher Sales Global average pricing will dip at a healthy rate of more than 4% and thereby allow greater adoption.
Dominated by APAC region, average pricing will define the adoption in masses. North America will witness a lower dip mainly due to the surge in luxury segment of smartwatches.