A new report released by Counterpoint Research, says the wearables market continues to grow quickly. The latest research shows that 52% of wearables in Q3 2020 consisted of hearables. Smartwatches and fitness trackers accounted for 41%. Skinwear, bodywear, and eyewear accounted for the remaining 7% share.
Source: Counterpoint Research. *Includes smartwatches and bands.
The hearables category alone has grown by 83% compared to 2019. A total of 238 million hearables units are were sold last year.
The trend around removing jacks and earphones from devices and boxes is becoming a big drivers for TWS segment growth […] It also helps that mobile media consumption continues to grow, making TWS the next must-have accessory.” – Liz Lee, Counterpoint Research Senior Analyst
Smartwatches, meanwhile, have seen stifling growth towards the end of 2020, but are expected to see a small uptick in 2021. Senior Analyst Sujeong Lim says “The normalization of economies coupled with increased interest in health and fitness will help the smartwatch market grow.” If the selling price of smartwatches steadily drops, Lim predicts the segment to continue to grow.
Going back to hearables, Apple was still in the lead as of Q3 2020 with 29% market share. Xiaomi came in second with 13% and Samsung is a distant third with 5%.
Five of the top ten brands sold budget TWS hearables with price points below $50. Hearables are becoming more and more affordable and will continue to grow in market share as demonstrated by Xiaomi being in the number two spot. Realme is currently at 2% share in Q3 2020, but analysts believe that the brand’s strong online presence and its history with exploding smartphone market share could mirror with hearables as well.