Market Research Reports - Ken Research Wearable Technology Market Size and Share

US Smart Wearable Devices Market Research Report to 2021: Ken Research
How The US Smart Wearable Health Device Market Is Positioned?
Wearable fitness devices had been in market since the early 1980’s however their uses were
restricted to professionals as they are costly and less consumer friendly. With the
miniaturization of equipments and development of software technology along with wireless
connectivity has made the wearable health devices more consumers friendly and are easier to
read and understand. Vyzin Electronics Private Limited was the first company which unveiled
their first medical alert smart watch for health with cellular, GPS and medicine reminder and
SOS for help during emergency. Apple after the launch of its first smart watch in 2014 has
emerged as the leader in the US smart watch market at the end of 2016. Market for smart
wearable health devices has increased significantly in the last three years (2014-2016). The
market on the basis of revenue generated from retail sales increased from USD ~ billion in 2014
to USD ~ billion in 2016. It registered ~% growth in 2015 and ~% in 2016. Volume sales during
the same period increased from ~ million in 2014 to ~ million in 2016. Fitness bands were the
most sold smart wearable health devices followed by smart watch. Apple, Fitbit, Garmin,
Samsung, Pebble, Motorola, Sony were some key players in the smart wearable market in the
US. Market will be driven by consumers who remain technologically active and upgrade their
hardware at regular intervals. Entry of new products segments and new consumer segments
will further augment the product demand in future. Companies like Apple and Fitbit will
continue their dominance in the short run. Companies developing more user friendly devices
and offering better after sale service in form of upgrades are expected to dominate.
Value Chain Analysis
Parent companies branding and marketing the product are at the top of the value chain. They
do the research and development, designing and other high end jobs. Manufacturing is
outsourced to contract manufacturers who manufacture the product on behalf of parent
company which is then either shipped directly to the retailer or to the ware house of the
company. Retailers may include large retail stores, online retail stores, or others. In corporate
sales and sales through company website the product is directly delivered to the consumers.
Margin is maximum for the manufacturer if the cost of R&D and other marketing and
advertising activities are neglected. It ranges between ~%-~% base on manufacturing cost and
MSRP. At the retail level the profit margin is dependent on the demand of the products and is
generally high for newly launched products. Margin declines for old products during festive
seasons when the prices are reduced (It also helps in stock clearance and reduce the overall
losses arising from unsold inventory) for smart wearables. Profit margin ranges between ~-~%
for offline retailers and ~%-~% for online retailers. In case of corporate sales margin is lower
than ~%.