Worldwide shipments of wearable devices reached 153.5 million in the fourth quarter of 2020 (4Q20), a year-over-year increase of 27.2% according to new data from the International Data Corporation (IDC) Worldwide Quarterly Wearable Device Tracker. Shipments for the full year grew 28.4% to 444.7 million units. While the holiday quarter was largely driven by new devices & lower prices, the broader trend for 2020 was the surge in consumer spending for electronics as disposable income was reallocated from leisure activities during the pandemic.
“While the shift in spending along with new products & typical seasonality were at play during the fourth quarter, the pandemic has also been good for the market as it has put health & fitness at the forefront of many consumers’ minds,” said Jitesh Ubrani, research manager for IDC Mobile Device Trackers. “In-home fitness programs are quickly becoming a crucial component of the wearables offering for many companies. Beyond that, the proliferation of health sensors such as skin temperature, ECG, & heart rate tracking are allowing users & health professionals to better understand the onset and tracking of diseases.”
However, growth has not been even across the wearables market as some companies & products were affected by the global semiconductor shortage. Most notably, wristbands declined 17.8% during the quarter & accounted for just 11.5% of all wearable devices shipped. Hearables* were the largest category of devices with 64.2% share of shipments, followed by watches with 24.1% share.
