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According to a report from the M2M/IoT analyst firm Berg Insight, shipments of connected wearables reached 72.5 million in 2015, up from 25.3 million devices in the previous year. Growing at a compound annual growth rate of 25.8 percent, total shipments of smartwatches, smart glasses, fitness & activity trackers, people monitoring & safety devices and medical devices as well as other wearable devices are forecasted to reach 228.3 million units in 2020. Bluetooth will remain the primary connectivity option in the coming years. A total of 17.8 million of the wearables sold in 2020 are forecasted to incorporate embedded cellular connectivity, mainly in the smartwatch and people monitoring & safety categories.
Apple entered the connected wearables market in Q2-2015 and quickly became the leading smartwatch vendor. The competition is responding with increasingly capable and attractive devices from Android Wear vendors including Motorola, LG, Huawei and Asus as well as from vendors betting on other platforms such as Samsung and Pebble. Smartwatch sales have picked up considerably during 2015 and shipments are on the track to reach 19.5 million units by the end of the year, a 353 per cent increase year-on-year.
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