Strategy Analytics released a report saying that global smartwatch sales will increase by 17% year-on-year in 2022 and a compound annual growth rate of 10% in 2021-2027. While the smartwatch market experienced its first year-over-year stagnation in unit sales in Q2 2022 since 2016, the latest research shows that sales of smartwatches will grow at an annual rate of 17% throughout 2022, according to the report.
Strategy Analytics expects this strong growth momentum to continue through 2027, corresponding to a 10% compound annual growth rate between the actual data in 2021 and the forecast data in 2027.
Furthermore, the report says the market is somewhat concentrated, with more than three-quarters of unit sales occurring in only ten major countries, a share that remains stable throughout the forecast period.
By targeting countries such as China, the United States, India, the United Kingdom, Indonesia, and Brazil, smartwatch suppliers will be able to reach the largest group of current and future smartwatch buyers. With most smartwatch buyers still buying for the first time, early movers like Apple and Samsung have an advantage in creating stickiness for their smartwatch offerings. That said, the market competition is becoming more intense, especially in the low-end market, and new entrants mainly in the Chinese market are introducing their products to the market, which also provides users of fitness bands and functional watches an affordable upgrade path.
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