Defining the Wearables Market

To size and forecast a market, you must be able to define it.

Consumers and the industry have different definitions for what constitutes wearables categories.? Many consumers do not define wearables product types according to industry terminology. Instead, a sizable number define categories based on brands – many identify the Apple Watch and Samsung Galaxy Watch as “smart watches” and devices from Fitbit as “fitness trackers.” Garmin is widely considered to define the “GPS sports watch” category alongside Suunto and Polar.

Parks Associates has determined a categorization of brands and models based on device capabilities and brand marketing. Heads of households self-reported the brand and model of personally owned wearable, and devices were categorized according to this schema.

• Smart Watches – wearables with access to an app store and the ability to download apps,
• Fitness Trackers – wearables without access to an app store, and no onboard GPS
• GPS Sports Watches – wearables with onboard GPS, marketed to athletes/outdoors enthusiasts.

Parks Associates latest consumer study, Wearables: Advances in Health & Safety, shows 48% of US internet households own a wearable. In addition, 12% of US internet households say they are likely to purchase a smart ring in the next six months. Smart rings are a new wearable form factor that offers traditional tracking capabilities without the screen, allowing for a more unobtrusive experience.

These new devices, along with hybrid watches, are helping drive new growth in the wearables market, which has reached nearly 50% adoption among US internet households. Smart rings are poised for strong future growth, especially during the upcoming holiday season.

Device makers must carefully evaluate their next strategies – to widen appeal and break into the remaining untapped market, or to hone-in on existing users with advanced features and functionalities. This research evaluates the current scope of the wearables market, looking at new advances in health and safety.

Parks Associates has extensive consumer and industry research on the connected health market. For more information, reach out to me or any of our team. www.parksassociates.com