The new “blue ocean” in the consumer electronics market in the next 10 years

Smart watch

Market analysis in the field of smart wear

The rapid development of the Internet has led to the rapid development of many related industries. Among them, technology and electronic consumer products are developing most rapidly because they are closer to the lives of ordinary people. Terminal products such as mobile phones and computers have now become an indispensable part of the daily work of many people, and the market segment headsets, speakers, smart watches/bands and other products centered on them have also been very popular in recent years.

The advancement of science and technology has promoted the continuous upgrading of consumer electronic products. With the emergence and application of new concepts such as smart life and the Internet of Everything, in the next ten years, mankind may fully enter the era of intelligence, and the market will usher in many new opportunities. The upgrade of electronic consumer products will also further enrich and facilitate people’s daily life.

The smart wearable market has been a new growth point in the consumer electronics market in recent years. The sales of TWS headsets, smart watches/bands, smart glasses and other products have continued to grow rapidly. And as people’s consumption upgrades and health concepts change, this growth trend will continue to expand in the future, becoming a new “blue ocean” in the electronic consumer market.

Corsca will share with you the status quo of the smart wearable market in detail, as well as the development and development opportunities of smart watches, which are the top priority of smart wearable products.

The status quo of the smart wearable market

1.What is smart wear?

Smart wear

Smart wearable device is a broad general term, which is a general term for wearable devices that are developed using wearable technology to intelligently design and develop daily wearable products. The product can directly contact the human body to help users listen to or watch the content, or collect human health information to assist in healthy sports and medical treatment.

Among them, it includes not only the more common headset products, wristband products, and glasses products, but also smart clothing and auxiliary medical equipment that have not been widely popularized, as well as the intelligent organs and implants that may extend human capabilities in the future. Sex chip and so on. Through data interaction with smart phones or cloud connection, many rich functions are realized.

2.Smart wearable market development

The AMC model of China’s smart wearable device market shows that in 2006, smart wearable products entered an exploratory period and began to tap user needs, try product forms, and build a software ecosystem.

The most sensational during this period was the AR augmented reality glasses Google Project Glass released by Google in 2012, followed by the second generation of products. The appearance design with a sense of futuristic technology and a brand-new interactive experience instantly detonated the market. However, due to the immaturity of the technology, the shortcomings of the product gradually exposed in the subsequent use process, which eventually led to the “difficult production” of the third-generation product.

In 2016, the market entered the start-up period. The main smart wearable computing system platform and big data service platform were completed, and service products based on health big data gradually matured. With the release of Apple Watch, the product form of the square dial has a huge difference from the traditional round watch, attracting more consumers. And with the application of follow-up products such as GPS, cellular data, and health monitoring, it has driven the rise of the smart watch market.

In recent years, smart wearable products have ushered in a period of rapid growth. Among them, the relatively low-tech TWS headset has become the main force, and sales have risen year after year. And with the addition of functions such as active noise reduction, it has been recognized by more people and has become the main growth point of consumer electronic products in recent years.

Smart watches, smart bracelets, smart glasses and other products also maintained a growth momentum. Among them, the combination of smart watches/bands and sports health monitoring functions has formed a unique differentiated feature and has become a product sought after by many young people. It is widely considered to be the main development direction of the smart wearable market in the future.

3.Smart wearable future

Current smart wearable products, due to the limitation of product size, most of the products need to be connected to mobile phones, PCs and other terminal devices, so as to realize the application of various functions and data processing.

However, compared with other smart wearable products, smart watches have a relatively large size and can carry more firmware configurations. The touch screen makes human-computer interaction more convenient and intuitive, and the way it is worn on the wrist is also easier to control. With the continuous advancement of smart watch technology, products are moving towards independent use.

After becoming an independent terminal product like a mobile phone, smart watches may gradually develop into the center of smart wearable devices, undertaking the data processing and cloud interaction of other smart wearable products, and becoming a multimedia access port, which is more convenient for users to use.

Smart watches may become smart wearable centers

1.Smart watch introduction

Smart watches are watches that have information processing capabilities and meet the basic technical requirements of watches. Smart watches are more inclined to use mobile phones. Compared with traditional watches, they not only have the functions of checking time and date, but also have an independent operating system, data processing center, and numerous sensor units, so as to achieve such as health and exercise detection, Check information, answer calls and other functions.

The current smart watch market products can be divided into three categories according to their functional positioning, namely children’s smart watches, adult smart watches and elderly smart watches. According to the form of product data interaction, it can be divided into three categories: Bluetooth version, Bluetooth/WiFi version and cellular data version.

Among them, children’s watches mainly focus on children’s safety issues, with functions such as voice calls, multiple positioning, one-key help, and remote monitoring; adult watches are mainly equipped with message reminders, music playback, and sports health monitoring functions; elderly smart watches focus on convenient control , Health monitoring and smart reminders.

The survey report on the distribution of the most popular smart watches by consumers shows that health monitoring, call and exercise management are currently the most popular functions of smart watches, and their popularity reached more than 60% in the interviews.

2.The development status of smart watches

In the current smart wearable market, in addition to TWS headsets, smart watches are another major product that has increased sales. With the continuous enrichment of functions, the improvement of battery life and performance, sales have increased rapidly year by year.

According to a data report from CCS Insights, a market research organization, the overall global shipments of smart watches/bands will be 193 million in 2020, a year-on-year increase of 24%. Among them, the shipment of smart watches reached 115 million, accounting for about 60%. And it is predicted that by 2025, the shipment of smart watches will reach 258 million. This is only the known brand product shipments, and all shipments will far exceed this data.

At present, the market share of smart watch shipments is far ahead of Apple’s Apple Watch. Huawei’s shipments have grown at a huge rate from 2019 to 2020. Currently, sales are ranked second, followed by Samsung, Fitbit, Huami and Garmin.

Smart watch industry chain and key technologies

The smart watch industry chain is similar to that of smart watches. The upstream mainly includes main control chips, sensors and algorithms, batteries, screens, etc.; the midstream includes industrial design and technology, software and hardware solution providers; the downstream is suppliers and terminal brand manufacturers contacted by consumers .

At the key technical level, it mainly includes R&D and design capabilities, interconnection and algorithms. At present, smart watches are very mature in heart rate and blood oxygen monitoring. In terms of algorithms, many manufacturers continue to follow up and upgrade, and the accuracy continues to improve. It has also been relatively complete in terms of data interaction between smart watches, mobile apps and the cloud.

However, new health monitoring functions such as ECG, temperature, blood pressure, and blood sugar are currently only supported by a few products, and the data is not accurate enough to analyze changes in physical conditions only through fluctuations. On the other hand, there is the battery life issue. Due to the limitation of watch size and battery technology, with so many all-weather monitoring functions, products that can reach more than 3 days of battery life are good.

Smart watch market opportunities

Smart watches are a rapidly growing emerging market. At present, although leading companies such as Apple and Huawei have large shipments, compared with market capacity, they still have very promising development potential in the future.

For many other new smart watch brands, since smart watches are still in the initial stage of development, companies engaged in this industry chain are basically on the same starting line except for the top ones, standing in the industries we mentioned above. Chain and key technology companies will usher in new development opportunities.

On the other hand, in addition to rich functional applications, smart watches also have a strong decorative role as traditional watches. Therefore, product design and product texture are also very important points for smart watches, which can achieve highly differentiated product appearances and can also be recognized by the market.

Conclusion

Smart wearable devices are one of the main growth points of the technological electronic consumer market in the next few years, and many manufacturers have begun to deploy. In the current market, TWS headset products have become the main force of sales growth. Due to the continuous improvement of functions and performance, and the relatively few related technologies required, the product update rate is faster, which further promotes the rapid growth of its sales.

Smart watches occupy an important position in the smart wearable market, and sales continue to grow. The independent operating system, data processing capabilities, and configuration applications of smart watches, such as screens and sensors, are all developing towards small phones. In the future, in addition to the continuous enrichment of their own functions, they may also occupy the center of smart wearable devices.

From the perspective of the overall smart wearable device industry, its future development potential is very huge, the types of products that can be tapped are also extremely rich, and the application of new functions is also in the development stage. At present, the barriers to entry in the smart wearable field are relatively low, and companies are basically on the same starting line. Therefore, who can first make breakthroughs in product industrial design, key technologies, software and hardware solutions, and later user services, will occupy a dominant position in the future smart wearable market.

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