· In the first half of 2020, Apple, Garmin and Huawei contributed more than 69% of the total revenue of the smart watch market.
The latest research of Counterpoint Internet of Things service shows that despite the impact of the COVID-19 epidemic, the global smartwatch market still achieved a revenue growth of 20% in the first half of 2020, and shipments were the same as the same period last year.
Figure 1: Revenue ratio of global smart watch manufacturers (H1 2020 vs H1 2019)
Counterpoint Research Global Smartwatch Shipment Revenue Share% in H1 2020 vs H1 2019 Senior Analyst Sujeong Lim commented on the development of the smartwatch market, “Affected by the COVID-19 epidemic, the demand for smart phones and other market segments in the first half of 2020 The smart watch market is still in the downturn. With consumers’ growing health awareness, the market’s demand for wearable devices continues to grow. In the first half of 2020, the number of smartwatches shipped is close to 42 million. Although India (increased year-on-year) 57%), Europe (up 9% year-on-year) and the United States (up 5% year-on-year) are the regions most affected by the COVID-19 epidemic, but smart watch shipments have maintained steady growth, offsetting the decline in other markets.”
Lim added, “Apple continues to lead the smart watch market in terms of shipments and revenue. Due to the eye-catching performance of Apple Watch S5, Apple’s smart watch revenue hit a record high and accounted for more than half of the market share. In the first half of 2020, Apple Watch Global shipments increased by 22%, with Europe and North America being the fastest-growing markets.”
Neil Shah, Vice President of Research, commented on the market competition pattern, “In the first half of 2020, Huawei’s smartwatch shipments increased by 57% year-on-year, ranking second in the world. This was mainly due to the strong growth in demand for Huawei’s smartwatches, especially It is the Watch GT2 series that has performed well in the Chinese and Asian markets, with shipments increasing by 90%. Garmin is the second-ranked brand in the world by revenue, and continues to lead the sports enthusiast and professional athlete market. The market demand for the Forerunner and Fenix series has increased by 31 year-on-year %, is one of the most extensive smart watch portfolios on the market. Europe and North America are still Garmin’s main markets.”
Shah commented on the fast-growing smartwatch brand, “In the first half of 2020, Amazfit (a year-on-year increase of 51%) and Xiaomi (a year-on-year increase of 47%) have maintained good growth momentum, with a continuous expansion of product portfolio and rapid expansion of business scope. China, India and other parts of Asia are still the main growth drivers for these brands. Samsung’s performance in the first half of the year was not satisfactory, but the Galaxy Watch 3 launched in the second half of the year may stimulate market demand. In the first half of 2020, Fitbit , Ticwatch and Suunto will face The fierce competition between Garmin and Apple is expected to increase its efforts to stimulate market demand during the holiday shopping season.”
Figure 2: The world’s best-selling smartwatch by shipment in the first half of 2020
Research Director Jeff Fieldhack commented on other development trends of smart watches, “Google WearOS continues to occupy 10% of the smart watch market, second only to Apple WatchOS. Huawei’s Lite OS and Amazfit’s Amazfit OS are also growing rapidly. In addition, with Cellular-enabled smart watches are becoming more and more popular, accounting for more than one-fourth of the smart watches shipped, which will benefit companies such as Qualcomm.
Currently, nearly 60% of smart watches have a heart rate monitoring function, and fall detection and SPO2 functions are expected to be widely used in the future. Nearly two-thirds of the global smartwatches use a square appearance, because this helps to better install sensors and provide more battery space. The significant increase in battery life and processing power can better track the user’s overall health, continuously monitor heart rate, sleep, etc., without frequent charging. The development of solar charging technology also helps manufacturers focus on improving monitoring. We expect that the market focus will remain on fitness and health applications. ”