Wearable device shipments to increase by 25.8% next year
Hearable shipments to surpass smartwatches by 2022
Average selling price of head-mounted displays is expected to increase
Gartner announced its 2019 wearable device sales forecast.

According to Gartner, shipments of wearable devices in 2019 are expected to reach 225 million units, a 25.8% increase from 2018. Gartner projected that end-user spending on wearable devices would reach $42 billion in 2019, with $16.2 billion of that amount going to smartwatches.

"The smartwatch market is currently growing, driven by the Apple Watch's relatively stable and high average selling price (ASP)," said Alan Antin, a senior director at Gartner. "However, the overall average selling price of smartwatches is expected to gradually decrease from $221.99 in 2018 to $210 in 2022," he said, adding, "While strong brands such as Apple and traditional watch brands are trying to keep prices stable, competitors are emerging with lower prices and reducing manufacturing and component costs through mass production."

In 2019, 74 million smartwatches are expected to be shipped, taking the top spot among all wearable devices. However, Gartner forecasts that by 2022, shipments of 'hearables,' or earwear devices, will reach 158 million units, reversing the rankings. Meanwhile, smartwatch shipments in 2022 are expected to be only 115 million units.

As the smartwatch sector continues to mature, smartwatch suppliers are expected to segment into four major types: consumer electronics brands, fashion and traditional watch brands, children's watch brands, and special purpose brands and startups. These target specific customer segments, such as people who require monitoring for medical purposes. Consumer electronics brands such as Apple, Fitbit, and Samsung are maintaining a stable lead, while other brands are stepping up their efforts to capture the market.

Director Antin stated, “Traditional watch brands such as Fossil and Casio will secure market share by offering a much wider variety of styles and options than tech brands based on their existing portfolios,” adding, “Gartner expects fashion and traditional watch brands to account for 20% of total shipments by 2022.”

Rapid growth of ear-worn devices
Gartner forecasts that by 2022, earwear devices such as Apple’s AirPods, Samsung’s Gear IconX, and Plantronics’ BackBeat Fit will account for more than 30% of total wearable device shipments as their communication and entertainment capabilities are enhanced. Currently, earwear devices are primarily used for fitness and health coaching, communication and entertainment, hearing aids and medical devices, and professional applications.

Next-generation earwear devices will be equipped with a virtual personal assistant and can be used for various tasks such as asking questions or giving commands. In addition, high-end earwear devices are expected to reduce smartphone usage as they take over many of the tasks currently performed by smartphones.


Rise in head-mounted display prices
Immersive head-mounted displays (HMDs) have primarily been used to experience augmented reality (AR) or virtual reality (VR). Most consumers have been reluctant to use head-mounted displays due to reasons such as availability, price, ergonomics, and unsophisticated design. AR head-mounted displays are mainly used for internal corporate purposes, such as as hands-free tools for business process improvement and training.

The primary use cases for VR head-mounted displays are in the entertainment and gaming sectors. However, current technology falls short of consumer expectations. While it is expected to continue improving, prices are also projected to rise.

Director Antin said, “Better content requires better technology. Therefore, in contrast to the outlook for other sectors, the average selling price of head-mounted displays will increase by 19.2% by 2022.”