The Latin America Smartwatch Market is expected to register a CAGR of 14.8% over the forecast period 2021-2026. Smartwatches, an emerging trend, integrate electronics into daily activities and address the changing lifestyles with the ability to be worn and accessed with ease. Factors, such as the ability to connect to the internet and provide data exchange options between a network and watch, are leading to the trend of Smartwatches.
- Latin America is a growing market for smartwatches. With investments pouring into this region, the economy grows, helping more people have disposable income to invest in technology such as smartwatches.
- These smart gadgets have started receiving a lot of crowd attention in the market and are estimated to grow more than imagined, given smartwatches' convenience and flexible functionality. These are becoming popular for providing hands-free control and access to data anywhere at any time of the day.
- The smartwatches market proliferates with new players such as Asus, Motorola, Tag Heuer, Alpina, Breitling, Xiaomi, and more. Apple, Fitbit and Samsung are the current market leader in the smartwatches market, with more than 65% of the smartwatches market share.
- Data security being the public's primary concern, smartwatches become a point of vulnerability as they collect data such as account information, Geo-location, and many more. Smartwatches connectivity with other devices is applicable by using multiple third-party apps that access or are hosted on the cloud, becoming a point of attack.
- With the outbreak of COVID-19, the demand for the sales of wearable devices, such as smartwatches, witnessed a major influx from online sales, cutting out various other costs involved in sales, owing to which the buyers were capable of buying products for lower prices on online platforms and compare features and prices.
Key Market Trends
Medical and Fitness to Account for a Significant Market Share
- Countries, such as Mexico, Brazil, and Argentina, among others, provide a potential opportunity for the companies offering smartwatch devices across these emerging economies. For instance, Samsung has already established one of the most substantial presence of smartwatches throughout these regions, and Fitbit had launched it's Fitbit Versa, Fitbit Ionic, and Fitbit Ionic Adidas Edition smartwatches in Argentina. These significant developments are expected to boost the growth of wearables in these regions.
- The transition of the smartwatch from a luxury gadget to a lifeline for addressing medical conditions by gradual development into medical equipment. The Apple Watch Series 4 is a typical example, featuring technical features like high-quality heart readings and fall detection.
- Saving on both time and resources, smartwatches are helping doctors by rendering some complex and significant information. Medical professionals are being backed by this data in solving puzzles, like what would be the impact of a new drug, or the constant monitoring of recovery status of an operated patient, and much more.
- With the decline in prices of smartwatch, sales of substitutes such as fitness trackers, are expected to stagnate. Vendors develop an interconnected wearable environment that smartwatch is an integral part of, which augment's the market and complement the business that has a broad portfolio in wearables.
Wear OS is Expected to Gain Significant Growth.
- Wear OS, was previously known as Android Wear. The Wear OS would not be able to function without the underlying Android OS, as both are separate but complementary. The OS pairs with phones running Android version 4.4 and above or iOS version 9.3 and above.
- The OS is used by various vendors who are primarily into the manufacturing of conventional watches and produce smartwatches that can connect to both iOS and Android. Owing to this, Wear OS still holds a significant share of the market.
- Google is trying to form a partnerships-based ecosystem with smartwatch vendors, such as Motorola, Sony, Tag Heuer, ARM, ASUS, CASIO, etc., in adopting Wear OS into their products. Such efforts are expected to drive the demand in the market over the forecasted period.
- Google has dedicated a team with hardware experience, which works internally on the Wear OS platform in developing new smartwatch designs. The integration of the feature in the Wear OS, was a useful feature in increasing the customer base for the products developed around the Wear OS.
The smartwatch market is a consolidated market, and therefore companies relying on product innovation and product development to gain an advantage. This is also making the rivalry intense in the market. Key players are Apple Inc., Fitbit Inc., Samsung Electronics Co. Ltd, among others. Recent developments in the market are:
- August 2021: Samsung Electronics launched its latest Samsung Galaxy Watch4 and Galaxy Watch4 Classic having 4g capabilities for enhances user experience.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
1.2 Scope of the Study
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of COVID-19 on the Industry
4.5 Market Drivers
4.5.1 Increasing Technological Advancements in the Wearables Market
4.5.2 Increase in Health Awareness among the Consumer
4.6 Market Restraints
4.6.1 Growing Complexity of Wearable Devices and Limited Use of Features, augmented With Security Risks
5.1.1 Watch OS
5.1.2 Android/Wear OS
5.1.3 Other Operating Systems
5.2 Display Type
5.2.3 TFT LCD
5.3.1 Personal Assistance
5.3.4 Other Applications
5.4 Latin America
5.4.3 Rest of Latin America
6.1.1 Apple Inc.
6.1.2 Samsung Electronics Co. Ltd
6.1.3 Fossil Group, Inc.
6.1.4 Huawei Technologies Co. Ltd
6.1.5 Fitbit Inc.
6.1.6 Garmin Ltd
6.1.7 Sony Corporation
6.1.8 Lenovo Group Limited
6.1.9 LG Electronics Inc.
6.1.10 Polar Electro OY
A selection of companies mentioned in this report includes:
- Apple Inc.
- Samsung Electronics Co. Ltd
- Fossil Group, Inc.
- Huawei Technologies Co. Ltd
- Fitbit Inc.
- Garmin Ltd
- Sony Corporation
- Lenovo Group Limited
- LG Electronics Inc.
- Polar Electro OY