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Smartwatch Unit Sales to Grow by 17% YoY in 2022, 10% CAGR 2021-2027

by Juha Winter | Oct 14, 2022

Even though the smartwatch market experienced a year-on-year unit sales plateau (0% growth) in the second quarter of 2022 for the first time since 2016, don’t let that mislead you. According to the latest wearables research from Strategy Analytics, smartwatches unit sales will grow by 17% YoY for the full year 2022, and we expect growth to continue on a strong trajectory up until 2027, corresponding to a CAGR of 10% between 2021 actuals and our 2027 forecasted numbers.

The market is concentrated in the sense that above three quarters of all unit sales take place in just ten major countries, and this share remains stable across the entire forecast period, as shown in the exhibit below:

Smartwatch Sales Forecst 2022-2027

By targeting countries such as China, the United States, India, the United Kingdom, Indonesia, and Brazil, smartwatch vendors will be able to access the largest pools of current and future smartwatch buyers. As the majority of smartwatch buyers are still first-time buyers, first movers like Apple and Samsung have an advantage in creating stickiness for their smartwatch products. That said, the market is becoming more competitive especially in the lower end, as new, mainly Chinese entrants are pushing their products to the market, also allowing an affordable upgrade path to fitness band and feature watch owners.

Interested in more market analysis on smartwatches and other wearable devices? Clients of Wearables service can access the research here.

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