Launched in April 2015, the Apple Watch represented a watershed moment in the development of the nascent smart watch sector, capturing the rapt attention of industry participants and consumers alike. Smart watches have undergone a strong period of innovation and development during the past year, with numerous models introduced on the Android Wear operating system as well as Samsung’s Tizen and other embedded operating systems, but Apple’s offering has been the galvanizing force for the industry during the early stages of the contest.
While the subsequent months have brought a significant amount of second-guessing within the industry about the prospects for Apple Watch, a recent report from market intelligence firm Tractica projects that it will nevertheless succeed in capturing 68% of total smart watch market share worldwide by the end of 2015, with approximately 16.7 million Apple Watch shipments out of a total market of 24.4 million smart watches.
“The launch of native Apple Watch apps and improvements in software will provide some respite to early adopters,” says research director Aditya Kaul. “Notifications are likely to become more contextual and useful, and we expect that Apple Pay will continue to gain momentum and will become an indispensable app for many users. In addition, we should not discount the demand for Apple Watch in China, where the company has been devoting a significant amount of energy in its marketing and retail efforts.”
Kaul adds that he expects to see a price reduction for Apple Watch toward the end of the year, and that the announcement of a second-generation watch is likely in early 2016.
Tractica’s report, “Smart Watches”, examines global market trends for smart watches and provides 7-year market sizing and forecasts for smart watch device shipments and revenues during the period from 2013 through 2020. The report examines the technology issues, market opportunities, and barriers for smart watches and the relevant application markets including consumer, enterprise, industrial, public safety, healthcare, and sports. An Executive Summary of the report is available for free download on the firm’s website.