Wearable Technology - US - December 2015


#493317

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Mintel

$ 3996

In Stock

In September 2014, Apple announced the launch of its Apple Watch, while Intel announced its partnership to produce smartwatches with Fossil. While the consumer wearable tech market had launched a decade prior with GoPro

Table of Content

Overview

What you need to know
Definition

Executive Summary

The issues
Crowded field, limited recognition
Figure 1: Brand ownership and perception, September 2015
Smartphones a challenge to overcome
Figure 2: Use of smartphone when exercising, September 2015
Minority of adults typically wear a watch or jewelry
Figure 3: Attitudes toward watches and jewelry, September 2015
The opportunities
Everybody runs
Figure 4: Participation in sports, September 2015
Total addressable market composes majority of online adults
Figure 5: Attitudes toward fitness and fitness products, September 2015
Gift market opportunities nearly as large as sales for personal ownership
Figure 6: Intent to purchase wearables, September 2015
What it means

The Market – What You Need to Know

Atypical growth rates show acceleration 2013-15
Smartwatches propelling sales
Fitness trackers largest segment
Majority of adults physically active

Market Size and Potential

Sales pass $7 billion
Growth potential for wearable cameras
Growth potential for smartwatches
Growth potential for fitness trackers
Figure 7: Estimated US manufacturer sales of wearable technology, at current prices, 2012-15

Market Breakdown

Smartwatch closing in on $2 billion in 2015
Fitness trackers approach $4 billion
Most rapid growth for wearable cameras in rear view mirror
Figure 8: Estimated US manufacturer sales of wearable technology, by segment, 2014 versus 2015

Market Perspective

Dedicated hardware competes with smartphone apps
Figure 9: Use of smartphone when exercising, September 2015

Market Factors

Universal smartphone penetration a perk and a problem
Figure 10: Ownership of phones, tablets, and computers, August 2015
Americans like to be active
Figure 11: Participation in sports, September 2015
Multiple sport athletes buy in
Figure 12: Ownership of wearables, by number of sports played multiple times per month, September 2015
Elevated participation among younger adults
Figure 13: Participation in sports at least multiple times per month, by age, September 2015
Elevated participation among higher-income groups
Figure 14: Participation in sports at least multiple times per month, by household income, September 2015
Whites, Asians more likely to be active
Figure 15: Participation in sports at least multiple times per month, by race/Hispanic origin, September 2015
Gifting
Figure 16: Total US retail sales in November and December, at current prices, 2008-15

Key Players – What You Need to Know

Sales blossom at GoPro, Fitbit
Foreign powerhouses need to invest in US awareness
Fashion at the fore

What’s Working?

Early-to-market leaders retain rapid growth
Figure 17: Global sales of wearable technology, by brand, 2012-15
Smartphone titans take on smartwatch
Figure 18: Smartwatch ownership and intent to purchase, by brand, September 2015

What’s Struggling?

Ad buys pay off
Figure 19: Brand ownership and familiarity, September 2015

What’s Next?

Lines blur between segments
Fitness tech gets fashionable
Advances in tracking sleep
Working with “Little Data”
Corporate and health insurance subsidies

The Consumer – What You Need to Know

Ownership revving up among young and high-income
Intent to purchase nearly as high as ownership
Expected spend shows understanding of market
One in three adults exhibit an interest in synch with fitness tracking

Participation in Sports

Running and walking most popular fitness activities
Figure 20: Participation in sports multiple times per month, September 2015
Niche markets add up
Figure 21: Participation in outdoor sports multiple times per month, September 2015
Fitness classes most popular with women 18-54
Figure 22: Participation in sports multiple times per month, by gender and age, September 2015
Young men head outdoors
Figure 23: Participation in outdoor sports multiple times per month, by gender and age, September 2015
Hispanics lead in sports participation
Figure 24: Participation in sports multiple times per month, by race/Hispanic origin, September 2015
Figure 25: Participation in outdoor sports multiple times per month, by race/Hispanic origin, September 2015

The Fashion Challenge

Styling a blight to most
Figure 26: Attitudes toward watches and jewelry, September 2015
Use of watches less common among young adults
Figure 27: Use of watches, by age, September 2015
Younger adults more sold on current designs
Figure 28: Appeal of fitness band styling, by age, September 2015

Ownership of Wearable Tech

Adoption unlikely to reach majority of adults
Figure 29: Ownership of wearable tech, September 2015
Young adults from $75K+ households adopted early
Figure 30: Ownership of wearable tech, by age and income, September 2015
Urbanites step into watches, focus on Apple
Figure 31: Ownership of smartwatches/GPS watches, by area, September 2015

Intent to Purchase Wearable Tech

Equal intent to buy smartwatches and fitness trackers
Figure 32: Intent to purchase wearable tech as gifts and for personal usage, September 2015
Intent to purchase pinned on age
Figure 33: Intent to purchase wearable tech, by age and income, September 2015
Urbanites more inclined to buy
Figure 34: Intent to purchase wearable tech, by area, September 2015
Uptick in interest in smartwatches among Hispanics
Figure 35: Intent to purchase wearable tech, by Hispanic origin, September 2015

Interest in Fitness Tech Hardware

Appearance not superficial
Figure 36: Wearable tech product ownership and intent to purchase – CHAID – Tree output, September 2015
Access to gyms critical
Culture more important than demographics
Figure 37: Product ownership and intent to purchase – CHAID – Tree output, September 2015

Historic Gifting and Intent to Gift

Low historical levels of gifting for fitness trackers and smartwatches
Figure 38: Gifting of wearable tech, September 2015
Gifting trends upward with household income
Figure 39: Gifting of wearables, by household income, September 2015
Parents more likely to gift
Figure 40: Gifting of wearables, by parental status, September 2015
Intent to gift higher
Figure 41: Intent to purchase wearables, September 2015
Appropriate gift recipients easy to think of

Expected Spend on Purchases

Products priced right
Apple likely priced out of gift purchases
Opposing trend for fitness trackers
Placing bets in the middle
Figure 42: Average expected spend on wearables, September 2015

Interest in Tracking Physical Activity

Interest in losing weight top potential driver for sales
Sharing a nonstarter
Figure 43: Attitudes toward fitness and fitness products, September 2015
Based on interests, women to pull further ahead
Figure 44: Attitudes toward fitness and fitness products, by gender, September 2015
Seniors need to know
Figure 45: Attitudes toward health tracking, by age, September 2015
Getting on the ground with Hispanics and Blacks
Figure 46: Attitudes toward fitness and fitness products, by race/Hispanic origin, September 2015
Focusing marketing on pedometer functions to be avoided
Figure 47: Attitudes toward tracking walking, by generation, September 2015

Interest in Smartwatch Features

Smartwatch features enticing to 19%
Figure 48: Interest in smartwatch features, September 2015
Young men top target for smartwatch marketing
Figure 49: Interest in smartwatch features, by gender and age, September 2015
Asians most enthusiastic about smartwatch features
Figure 50: Interest in smartwatch features, by race/Hispanic origin, September 2015
Opposition to adopting smartwatches more prevalent than interest in them
Figure 51: Attitudes to smartwatches and new technology, September 2015
Attitudes trend with age
Figure 52: Attitudes to smartwatches and new technology, by age, September 2015

Interest in Monitoring Sleep

Sleep issues trouble 60% of adults
Figure 53: Sleep issues, by gender, November 2014
Youngest adults most likely to report difficulties
Figure 54: Sleep issues, by age, November 2014
One in three worry about sleep quality
Figure 55: Concern over quality of sleep, and interest in monitoring sleep, September 2015
Youngest adults most likely to be willing to wear a device to bed
Figure 56: Interest in monitoring sleep, by age, September 2015
Women more interested in monitoring sleep
Figure 57: Interest in monitoring sleep, by gender, September 2015

Appendix – Data Sources and Abbreviations

Data sources
Consumer survey data
Consumer qualitative research
CHAID analysis methodology
Abbreviations and terms
Abbreviations
Terms

Appendix – Consumer Tables

Figure 58: Attitudes toward fitness and fitness products, September 2015

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