Article by Forbes Contributor, Mr. Paul Lamkin. Direct link to article click here.
CCS Insight has updated its outlook on the future of wearable tech, indicating that 411 million smart wearable devices, worth a staggering $34 billion, will be sold in 2020.
The analyst claims the industry will hit $14 billion this year, with wrist-based devices – such as smartwatches and fitness trackers – continuing to dominate. Its forecast states half of all wearable tech sales over the next 12 months will be from these genres, with smartwatches making up 50% of the estimated 60 million shipments.
Back in mid-2015 CCS claimed that around 20 million Apple Watches would be sold in the calendar year but it is now stating that just over 9 million Cupertino smartwatches were sold before 2016 arrived. That’s a number that gives it, according to the report, a 41 percent market share.
Earlier this month Canalys estimated that Apple shipped 12 million smartwatches in 2015 – a figure it claimed was worth two-thirds of the total smartwatch market. Gartner had stated a week earlier that around 30 million smartwatches were shifted in 2015. So that’s estimates of 18, 22 and 30 million from three of the biggest analysts, proving that it’s not an exact science.
ADVERTISINGBen Wood, chief of research at CCS Insight, commented, "Given the rising consumer apathy toward smartphones, it is little wonder so many companies are chasing the rapidly growing opportunity presented by wearables. We're particularly excited about the potential for augmented and virtual reality devices, and we predict 2016 will be a pivotal year."
That excitement extends to a prediction that the AR and VR market will be worth $14.5 billion by 2016, a 15 fold increase on the current situation.
CCS claims 5 million VR headsets were bought by early adopters last year, mainly in the low end mobile VR headset market populated with Google Cardboard compatible devices and Samsung’s Gear VR range.
It says 96 million VR headsets will be shipped in 2020, with the likes of Oculus Rift, PlayStation VR and the HTC Vive expected to dominate.
The AR genre by itself will be worth $1 billion by 2017, according to the report. Google Glass is the highest profile device in this area so far, but it looks as if Microsoft could hold the trump card with its HoloLens headset.
These figures back up what CCS was saying back in June 2015 when it published a report – Augmented and Virtual Reality Device Forecast, 2015-2019 – stating the amount of AR and VR devices sold would hit 24 million in 2018.
Paul Lamkin is the editor-in-chief of wearable technology website Wareable.