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According to Gartner's latest wearable device sales forecast report, global wearable electronics saw a significant rise in 2016, with an 18.4% increase in sales compared to the previous year. Among these, VR and AR headsets reached 1.4 million units, marking a substantial growth. Meanwhile, smartwatches also performed strongly, with over 50 million units sold in 2016, and revenue is expected to hit $17.5 billion by 2019.
In 2016, the total global wearable device market reached 270 million units, up from 232 million in 2015, generating $28.7 billion in revenue. VR and AR devices saw a tenfold increase in shipments, rising from 140,000 units in 2015 to 1.4 million in 2016. Gartner predicts that this trend will continue, with VR/AR headset shipments reaching 6.31 million units in 2017.
At this year’s CES, VR was a major highlight, with several high-profile headsets like HTC Vive, Oculus Rift, Sony PlayStation VR, and Microsoft HoloLens set to launch. Brian Blau, a research director at Gartner, noted that these launches are expected to boost early adoption and drive market growth.
While HMDs are still an emerging market, they are expected to gain traction in both consumer and enterprise sectors. Consumers and businesses alike are looking forward to using VR for entertainment, gaming, and even film and sports content. The immersive experience offered by these devices can enhance user engagement and provide more personalized experiences.
In the enterprise space, Gartner forecasts a 26% growth in HMD usage by 2018, as companies begin to use them for tasks such as repair, inspection, and maintenance. Employees will be able to access work instructions and visual guides through these devices, improving efficiency and accuracy.
However, challenges remain. Brian Blau highlighted that developing interactive content and interfaces for HMDs is still a big hurdle. Most current software and media are designed for 2D screens, while VR requires new forms of immersive content creation.
Smartwatches have also shown strong growth, with a 48% increase in acceptance between 2015 and 2017. Apple has played a key role in popularizing smartwatches as a lifestyle accessory, combining style with functionality. This has helped drive consumer interest and adoption.
Beyond Apple, other factors are contributing to the rise in smartwatch sales. Many users prefer receiving notifications on their wrists rather than checking their phones constantly. It's seen as more convenient and less disruptive.
Looking ahead, future smartwatches are expected to support voice commands, IoT control, and even contactless payments. These features will further expand their utility and appeal.
Despite the impressive growth, smartwatches still lag far behind smartphones in terms of market size. In 2016, smartphone sales reached over 374 million units in mature and emerging markets, including cities like Hong Kong and Singapore.
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