Wearable devices such as Smartwatches have steadily increased in popularity in recent years. According to data presented by TradingPlatforms.com, revenue from the Smartwatch industry in the US is projected to pass the $10B mark in 2021 after an almost 20% YoY increase.
Smartwatch industry in US to pass $10bn in 2021
Smartwatches are essentially tiny computers that users can wear on their wrists and providing time is probably the least impressive of its abilities. The industry’s steady growth in recent years will see it break the $10B revenue mark in the US where it is expected to generate $10.4B in revenue in 2021.
This figure is a 19.9% increase from 2020’s revenue when the Smartwatch industry experienced a significant contraction due to the COVID-19 pandemic which affected both supply and demand of smartwatches. Revenue from Smartwatches in the US is expected to grow at a compound annual growth rate (CAGR) of 7.7% from 2021-2025 reaching $14B by 2025.
Smartwatch revenue from the US is second-highest in the world, only trailing China’s $12.1B revenue. The steady growth of the Smartwatch industry is buoyed by the high price point of such devices. In 2021, the average revenue per user of a smartwatch was estimated to be at $276.76 and is projected to increase to $325.9 per user by 2025.
US Smartwatch penetration rate 7th highest in the world
Despite the high price point of Smartwatches painting a rosy picture in terms of revenue numbers, it is also the main factor for the still relatively low penetration rate of such devices globally. Smartwatch users in the US are expected to reach an estimated 37.61M in 2021 and reach a penetration rate of only 11.3% – only the seventh-highest in the world.
Rex Pascual, editor at TradingPlatforms.com said, “The Smartwatch industry is expected to recover well after a tumultuous 2020. Advances in 5G technology in the next few years will only increase the already impressive capabilities of such devices.”