IDC: China Wearable Device Market Picked Up in 2Q20 with a year-over-year growth of 4.1%

IDC: China Wearable Device Market Picked Up in 2Q20 with a year-over-year
growth of 4.1%

           Beijing, September 02, 2020 — IDC China Quarterly
           Wearable Device Market Tracker, Second Quarter of 2020
           (2Q20) shows that China's wearable device market shipped
           26.58 million units in 2Q20, an increase of 4.1% year
           over year (YoY). The shipment of basic wearable devices
           (wearable devices that do not support third-party applications)
           reached 22.24 million units, an increase of 6.1% YoY, and
           the shipment of smart wearable devices reached 4.35 million
           units, a YoY decrease of 4.9%.Figure 1

           With the sports watch GT2 and the truly wireless headset
           Free buds 3, Huawei not only increased its market share
           in the watch and Bluetooth headset market, but also
           consolidated its top position in the overall wearable device
           market. Although Xiaomi still sits firmly on the top of the
           wristband market, the new wristband products have limited
           impact on overall performance. For example, the Mi Band 5
           made only a small contribution to shipments this quarter due
           to its late launch time. Moreover, Xiaomi is in a new product
           switching period in the Bluetooth headset product line, and
           has not yet made further breakthroughs. Apple ranked third
           in the second quarter. The AirPods and Apple Watch series
           products were driven by the June promotion season. The
           shipment for the accumulated demand in the first half of
           the year was also released in this quarter and shipments

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continued to grow. In the children's
watch market, BBK's Xiaotiancai
and Qihoo 360 were still affected
by insufficient market demand, and
their shipments showed varying
degrees of decline YoY.

In 2Q20, with the exception of
the children's watch market, most
product in China's wearable device
market recovered significantly.
Among them, the market for
earwear and adult watches
significantly exceeded the market
size of the same period last year.
As far as the wrist-worn products
are concerned, as the market
growth of wristbands gradually
slowed down, watches had strong
development momentum by
virtue of their advantages such
as optimized battery life and
diversified functions, becoming
the favorite wearables of more
consumers.

Driven by watch products, wrist-
worn wearable devices have
shown booming growth momentum
in the consumer market. The
upgrade of sensor and algorithm
technology not only continued to
attract more users to try or update
their wrist-worn devices, but also
promoted data monitoring. On
the basis of diversified types,
it provides more possibilities
for future service expansion in
fitness, health, and even medical
treatment. The link between
the wrist-worn wearable device
market and the fitness, health,
and healthcare industries will

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become an important direction
for enhancing the added value
of equipment and expanding
equipment marketing channels
going forward.

Figure 2

1. Cooperation with Sports
Application Services

The watch market is developing
rapidly, and the wristband
market is still attractive to a
wider audience in terms of cost
performance. Particularly in
terms of cooperation with fitness
applications and services, the cost
advantage of wristband has made
them the product of choice in many
cases. Real-time understanding
of changes in members' physical
indicators through bracelet
products, as well as tracking
and analysis, have become one
of the ways for more and more
offline gyms to enhance member
adherence. In addition, fitness
applications with large-scale users
have gradually launched their
own branded wristband products
to create a closed loop of sports
scene services, such as Keep.

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2. Cooperation with Large Health
Industry Institutions

Wrist-worn wearable devices have
gradually begun to cooperate
with the healthcare and insurance
industries to increase the
interactive experience of their
users and enhance their value-
added services. At the same
time, regulated healthcare
and insurance companies can
provide more data analyses and
application scenarios for wearable
wrist-worn devices and further
expand marketing channels.

3. Cooperation with Professional
Healthcare Institutions

The cooperation between wrist-
worn equipment products and
professional healthcare institutions
has gradually become the
trend of market development.
Professional healthcare institutions
can improve the data accuracy
and professionalism of wrist-
worn device products, and
cooperation with emerging
technology industries will provide
more trial cases for the digital
transformation of the traditional
healthcare industry. Watches
have more advantages in terms
of the richness of data monitoring
and the access experience of
service functions, so they have
become the product of choice
in most cases of cooperation
with professional healthcare
institutions.

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IDC China Research
Manager，Sophie Pan believes
that,

in the post-pandemic era, fitness
and healthcare have become
important development directions
for wearable devices in the mobility
applications. While the pandemic
is stimulating the demand growth,
manufacturers are also vital
in cultivating the consumers'
demand. As the hardware's
functionality continues to expand,
the expansion of the service-based
functions around the fitness and
healthcare applications do not only
enhance the value and credibility
of the hardware but also drive the
overall market growth.

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Frank Wang

Associate Vice President, IDC
China

Phone: (+86-10) 5889 1588

Email: frankwang@idc.com

Maggie Xie

Sr. Marketing Executive, IDC
China

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Phone: (+86-10) 5889 1558

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+86-10-5889 1588

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