User spending on wearable devices globally will reach $52 billion in 2020, an increase of 27% from this year, according to a new Gartner forecast.
Worldwide spending on wearables this year is projected to reach $41 billion, with smartwatches growing 34% and smart clothing 52%.
“More users coming into the smartwatch segment are replacing wristbands with smartwatches,” stated Ranjit Atwal, senior research director at Gartner. “While brand leaders Apple Watch and Samsung Galaxy Watch command premium pricing, lower-priced players such as Xiaomi and Huawei will counterbalance high-priced smartwatches with lower cost smartwatches.”
Gartner estimates the average selling prices of smartwatches will decline 5% between 2020 and 2021.
Smartwatches and ear-worn devices are expected to lead in terms of shipments in 2020, with smartwatch shipments reaching 86 million units and ear-worn devices 70 million.