Global wearable sales are on the rise as new devices focus on more sophisticated healthcare use cases, such as FDA-approved heart rate monitoring.
Global shipments of wearable devices reached 32 million units in the third quarter, a year-over-year increase of nearly 22 percent, according to a new report from industry tracker IDC. New demand in Asia, more sophisticated features on basic wearables, and a push into healthcare for smartwatches are driving the increase in shipments, said Jitesh Ubrani, senior research analyst at IDC.
Both Apple and Fitbit have delved deeper into healthcare over the past few months. In September, Apple unveiled an FDA-approved heart rate sensor that put its Apple Watch into an entirely new category of medical-grade devices. Two weeks after that Fitbit launched Fitbit Care, an enterprise health platform for wellness and prevention and disease management. Fitbit also teamed up with Google’s Cloud Healthcare API earlier this year to work more closely with doctors to provide personalized healthcare.
“The healthcare market is quickly becoming the next frontier for wearables brands to conquer,” Ubrani said. “With heavy regulation and greater scrutiny, this segment will likely be the one that staves off value brands, allowing the market leaders to further cement their lead.”
For basic wearables, such as fitness trackers, new products from the likes of Fitbit, Garmin and Huawei helped the basic wearables category return to growth during the quarter. Apple launched its Series 4 Watch, which was its first watch approved for medical use. Fitbit’s latest devices, including the Versa, Charge 3, and the Ace, helped the company slow its decline compared to previous quarters.
Demand in Asia (excluding Japan) accounted for more than half of all wearables shipments last quarter, as Chinese manufacturer Xiaomi grew its lead over Apple and Fitbit having already surpassed them last year.
“China—the largest market for wearables and more than double the size of the U.S. market—has grown thanks to strong device development and experimentation, low-cost products, and strong demand for basic devices to draw in new users,” said Ramon Llamas, research director at IDC.
Xiaomi grabbed the top position during the quarter with the help of the Mi Band 3 and significant expansion beyond China. Though China typically accounts for well over 80 percent of Xiaomi’s shipment volume, this quarter that share fell to 61 percent as it expanded in India, Europe, the Middle East, and Africa.
SportTechie Takeaway
Healthcare, wellness, and preventative care are powering the success of wearables. The benefit of wearable technology is that it focuses on deeply personal insights that are helping professionals in the industry provide more personalized healthcare. In the sports world, demand for wearables is growing as well, thanks to features that help athletes train at their peak while keeping tabs on their load to reduce injury. Technologies such as the Catapult Sports’ chest-mounted trackers or smartwatches from Fitbit, Apple, and Whoop, offer lofty results by monitoring granular levels of performance and recovery. Proponents say these technologies will have enormous benefit for athletes, while others warn of the bioethical concerns associated with trackers and caution their use.