Wearable Devices = Big Opportunity for Electronic Manufacturers
Major Growth in Wearable Electronic Sales Predicted for 2015
A recently released study from the International Data Corp. (IDC), has forecasted that vendors will ship a total of 45.7 million units in wearable electronics in 2015. This figure is up 133.4% from the 19.6 million units that were report to have shipped in 2014.
Building on the recent trend of wearable fitness trackers, smart watches are set to take a significant leap forward with the April 24th release of the Apple Watch. Consistent growth is also anticipated in “basic wearables” as many consumers continue to seek out single-use wearable devices.
In the chart below, you can see that the IDC is forecasting that wrist wear will account for almost 90% of the industry’s market share in 2015. Wrist wearables include bands, bracelets and watches. Coming in with the second highest percentage are devices that are customarily much simpler to produce, Modular wearable devices (devices that can be worn on any part of the body with a clip or a strap). This category is predicted to take 5.7% of the 2015 market share.
Worldwide Wearable Device Shipments Market, 2014-2019
| Product Category | 2014 Shipment Volumes | 2014 Market Share | 2015 Shipment Volumes* | 2015 Market Share* | 2019 Shipment Volumes* | 2019 Market Share* |
| Wristwear | 17.7 | 90.4% | 40.7 | 89.2% | 101.4 | 80.4% |
| Modular | 1.6 | 8.3% | 2.6 | 5.7% | 6.7 | 5.3% |
| Clothing | 0.0 | 0.1% | 0.2 | 0.4% | 5.6 | 4.5% |
| Eyewear | 0.1 | 0.3% | 1.0 | 2.2% | 4.5 | 3.5% |
| Earwear | 0.0 | 0.0% | 0.1 | 0.1% | 0.6 | 0.5% |
| Other | 0.2 | 0.9% | 1.1 | 2.4% | 7.3 | 5.8% |
| TOTAL | 19.6 | 100.0% | 45.7 | 100.0% | 126.1 | 100.0% |
* (units in millions)
Though the Apple Watch will likely be a hot commodity among tech savvy consumers, the key for manufacturers will be to create a device that is useful for even the ordinary consumer. It would take very compelling benefits or ingenious marketing tactics to convince the average buyer to replace his or her regular wrist watch with wearable technology that will likely involve daily recharging. Regardless of the obstacles, the future for wearable electronics is looking very bright.
The Importance of Supply Chain Partners
Supply chain partners impact everything from product quality to production cost. As competition in the wearable technology sector heats up finding the right supply chain partner will become increasingly important. For over four decades bisco industries has served manufacturers on the cutting edge of technology and is strategically positioned to help clients in the printed circuit board industry enter the wearable technology market. bisco industries is an authorized distributor for over 150 manufacturers with a products ranging from interconnect components, to test points, to PCB hardware. In addition, bisco offers extensive stock, online pricing, experienced local sales reps, and a variety of supply chain services. Visit biscoind.com to learn more about partnering with bisco industries.
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