Strategy Analytics released a report that said global smartwatch sales will grow 17% year-over-year in 2022 and 10% compound annual growth rate from 2021-2027.
The report notes that while the smartwatch market experienced the first year-over-year stagnation in unit sales since 2016 in Q2 2022, the latest research shows that smartwatch sales will grow at a 17 percent CAGR throughout 2022.
Strategy Analytics expects this strong growth momentum to continue through 2027, corresponding to a 10 percent CAGR between actual 2021 and forecast 2027 figures.
In addition, the report states that the market is somewhat concentrated, with more than three-quarters of unit sales occurring in just ten major countries, a share that remains stable throughout the forecast period.
"By targeting countries such as China, the US, India, the UK, Indonesia and Brazil, smartwatch suppliers will be able to reach the largest group of current and future smartwatch buyers. With the majority of smartwatch buyers still being first-time buyers, first movers such as Apple and Samsung have an advantage in creating stickiness for their smartwatch products. That said, the market is becoming increasingly competitive, especially at the lower end of the market, and new entrants, primarily in China, are introducing their products to the market, providing an affordable upgrade path for users of fitness bracelets and feature watches."
