Market analysis of China's smart watch industry in 2021

In 2020, China’s smart watch industry has suppressed some demand due to the impact of the epidemic, but from the second half of 2020 to the beginning of 2021, the scale of smart watch sales has a further growth trend. From a breakdown point of view, adult smart watches accounted for more than 60%, which is the main application market.

Major listed companies in the smart watch industry: Currently, the listed companies in the domestic smart watch industry mainly include Xiaomi Group (01810. HK), FIYTA (000026), Lenovo Group (00992. HK), etc.

The core data of this article: smart watch shipments, smart watch market size

Smart watches have a wide range of applications

According to a report released by the Smartwatch Group (SWG), the current application areas of smart watches mainly fall into the following 10 categories: Personal assistance, Medical/health, Wellness, Personal Safety, Enterprise Solutions (Corporate Solutions), calls (Communication), sports (Sports), smart home (Smart Home), access control (Access Control) and payment (Payments).

图表1:智能手表十大应用领域情况

China’s watch shipments in 2020 will be 40.21 million pieces

In recent years, the shipment volume of my country’s smart watch industry has been increasing year by year, and the compound annual growth rate of the industry from 2014 to 2019 is about 29.6%. IDC data shows that China ‘s children’s smartwatches and adult smartwatches totaled 35.86 million shipments in 2019, preliminary estimates. In 2020, China’s smart watch shipments reached 40.21 million units.

图表2:2015-2020年我国智能手表出货量(单位:万件,%)

According to IDC data, China’s smartwatch shipments are dominated by adult smartwatches, with 15.32 million shipments, accounting for 61.9%, mainly due to the continuous expansion of the office, health and other demand markets. Children’s smart watches accounted for 38.1%, mainly based on children’s safety considerations, to ensure the personal safety of children in terms of calls and intelligent positioning.

图表3:2020年我国智能手表出货量结构(单位:%)

China’s smart watch market is steadily increasing

From 2015 to 2020, the scale of China’s smart watch market shows a steady growth trend. According to relevant statistics, the scale of China’s smart watch market in 2017 was 13.1 billion yuan, a year-on-year increase of 52.3%. According to preliminary estimates, the scale of China’s smart watch market will reach 26.8 billion yuan in 2020.

With the completion of the main domestic smart watch system service platform, the development of service products based on health big data is mature, and the degree of product differentiation increases, and the future market scale will continue to grow.

图表4:2015-2020年我国智能手表市场规模(单位:亿元,%)

Multiple policies support market development and promote the expansion and upgrade of the smartwatch industry

The State Council and other departments issued relevant policies such as “Made in China 2025”, “Three-Year Action Plan for Promoting the Development of the New Generation of Artificial Intelligence Industry (2018-2020)” and other related policies, all of which propose directions for my country’s intelligent manufacturing industry and require industrial development to adhere to a supply-side structure. The main line of sexual reform is to encourage innovation, strengthen cooperation, and explore new business formats, new models, and new paths;

The “Implementation Opinions on Promoting the Deep Integrated Development of Advanced Manufacturing and Modern Service Industries” jointly issued by 15 departments including the National Development and Reform Commission, which proposes to deepen the integrated development of the manufacturing service industry and the Internet, vigorously develop “Internet +”, and stimulate development vitality and potential , To create a new ecology of integrated development;

Accelerate the innovative application of new-generation information technologies such as artificial intelligence and 5G in manufacturing and service enterprises, and gradually realize in-depth optimization and intelligent decision-making. On the whole, it is estimated that in 2021, the scale of China’s smart watch market will exceed 30 billion yuan.

图表5:截至2021年5月部分智能硬件相关政策

Source: Prospective Industry Research Institute