Competition from Lower Cost Smartwatches Will Reduce Average Selling Prices by 4.5% in 2021
| Device Type | 2018 | 2019 | 2020 | 2021 |
| Smartwatch | 12,412 | 17,047 | 22,803 | 27,388 |
| Head-mounted display
Ear-worn Sports watch Wristband Smart-clothing Total |
5,354
6,780 3,647 3,405 848 32,446 |
7,183
7,885 4,121 3,194 1,151 40,581 |
10,609
8,716 4,555 3,115 1,746 51,545 |
15,501
9,927 4,912 3,055 2,202 62,985 |
Source: Gartner (October 2019)
Several Factors Influence Rise in Wearable Devices Spending
One of the biggest influencers of increasing adoption of wearables is users who are new to the wearables market. Other influences include improved sensor accuracy, advances in miniaturization and better user data protection.
Device makers will focus on smaller and smarter sensors, and those built into wearable devices will increasingly be capable of more accurate readings enabling more use cases.
Miniaturization will also greatly benefit smart garments. Advances in miniaturization have enabled device makers to integrate sensors that can track sleep or medical conditions into wearables that are almost invisible to end users. “These discrete and nearly invisible wearables will particularly increase acceptance among reluctant end users,” said Alan Antin, senior research director at Gartner.
Gartner predicts that by 2023, miniaturizing capabilities will advance so that one tenth of all wearables will be unobtrusive to the user.
Data security and privacy is another influencing factor in the growing number of new wearable users. Wearable device organizations and ecosystem providers will continue to invest in protecting user data. Gartner analysts expect end-user privacy will remain an influencing factor impacting adoption especially for healthcare use cases, where HIPAA in the U.S. and relevant local regulatory rules apply. GDPR in Europe and privacy regulations in other countries will also further the cause of securing data and privacy rights.
