The following is a press release.
FRAFRAMINGHAM â€“ The worldwide market for wearable devices grew 31.4 percent during the fourth quarter of 2018, reaching a new high of 59.3 million units according to data from the International Data Corporation (IDC)Â Worldwide Quarterly Wearable Device Tracker.
Growth in the market was driven by new wearables launching during the months leading up to the holiday season as well as new smartphone launches as many were bundled with wearables from leading brands. Shipments for the entire year of 2018 grew by 27.5 percent with 172.2 million wearables shipped.
Much of this growth was attributed to the growing number of ear-worn devices as they captured almost a quarter of the market during the year.
In keeping up with current trends, IDC has recently revised its taxonomy for ear-worn devices to now include wireless headphones capable of enabling smart assistants at the touch of a button or through hot-word detection. Examples of such headphones include Appleâ€™s AirPods, Googleâ€™s Pixel Buds, Boseâ€™s QC35II, and more.
Among the various form factors available during the quarter, smartwatches grew 55.2 percent compared to the quarter in 2017,. and accounted for 34.3 percent of the overall market during the quarter.
Meanwhile, wrist bands accounted for 30% of the market as recent launches from Xiaomi, Huawei, and Fitbit continued to drive the category forward. Ear-worn devices grew 66.4 percent and captured 21.9 percent of the market.
â€śThe market for ear-worn wearables has grown substantially this past year and we expect this to continue in the years to come,â€ť saidÂ Jitesh UbraniÂ senior research analyst for IDCÂ Mobile Device Trackers. â€śIt is the next battleground for companies as these types of headphones become a necessity for many given the exclusion of headphone jacks from modern devices. Add to that the rise of smart assistants and in-ear biometrics and companies have the perfect formula to sell consumers on a device thatâ€™s complimentary to the device ecosystem that lives on their wrist and in their pocket.â€ť
â€śSmartwatches, meanwhile, grew 54.3% and accounted for 29.8% of all wearable device shipments in 2018,â€ť saidÂ Ramon T. Llamas, research director for IDCâ€™sÂ Wearables.Â â€śApple accounted for nearly half the market and followed by a long list of companies that posted double- and triple-digit growth. What resulted from this was a growing list of devices available at multiple price-points to meet the needs of a diverse market.â€ť
AppleÂ maintained the number 1 position with 16.2 million devices shipped in 4Q18, 10.4 million of which were Apple Watches. The Series 4 has been off to a very strong start and IDC anticipates this to continue as more healthcare organizations and consumers adopt the latest device. The remainder of Appleâ€™s shipments were comprised of AirPods and Beats headphones in the ear-worn category.
XiaomiÂ captured the second position amongst the top 5 with 12.6% share. The companyâ€™s products remain strong in its home country of China. However, recent investments in Europe and other Asian countries have paid off and helped cement Xiaomiâ€™s name as a competitive force. Xiaomiâ€™s Mi Band 3 alone accounted for over 30% of all wrist bands shipped during the quarter.
HuaweiÂ had a great quarter in the wearables and smartphone markets. Within smartphones, the company grew 43% during the quarter in an otherwise declining market and this translated to a staggering 248.5% growth in the wearables market since many of the Huawei and Honor phones were bundled with wearables. New product launches such as the Watch GT, FreeBuds 2 Pro, and a few others also helped the company gain traction.
FitbitÂ finally returned to growth during the holiday season as the new Charge 3, combined with promotional activity on other popular devices such as the Versa, helped the company to claw back some of its market share. The companyâ€™s outlook remains strong as investments in the healthcare segment continue to pay off. In the U.S., Fitbit has managed to partner with providers such as Blue Cross Blue Shield, UnitedHealthcare, and others, allowing for further proliferation of its devices and services.
Rounding out the top 5 wasÂ SamsungÂ with 4 million units shipped during the quarter. Similar to Huawei and Xiaomi, Samsung was also able to bundle many of its wearables with smartphones. The newly launched Galaxy Watch was quite well received although older models such as the Gear S3 still managed to capture a notable share of Samsungâ€™s overall shipments.
International Data Corporation (IDC) is a global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDCâ€™s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), a media, data and marketing services company that activates and engages the most influential technology buyers. The company has its headquarters in Framingham.