The concept of a smart watch has captured the fancy of consumers ever since Dick Tracy sported a two-way wrist watch radio on his wrist in the 1940’s. There have been many attempts since at making a consumer smart watch product, but it has only been in recent years that the market has begun to take off.

However, despite increased interest and new players entering the game, the smart watch market is still in its infancy, and a vast majority of smart watch users are early adopters. According to Parks Associates data, 3% of US broadband households purchased a smart watch in the 12 months prior to a Q1 2015 survey. Consumer interest in smart watches is growing, with 9% of broadband households in the US intending to purchase a smart watch in the next 12 months.

Smart watch purchase decisions of early adopters are driven by the features and functionality offered by the smart watches; 58% of smart watch buyers rank features of a smart watch among the top three considerations in their purchase decision, followed by brand and product appearance. As the smart watch market matures, the design and aesthetics of a smart watch will become increasingly important for consumers.

Apple’s entry into the smart watch race in 2015 provides a much needed impetus to growth in smart watch adoption, which has hitherto failed to meet expectations.  Apple’s branding and marketing, as well as the potential use cases enabled by WatchKit, will drive sales. Additionally, given that nearly two-thirds of the smart watches purchased in 2014 were purchased during the holiday season, an Apple-ignited category will turn smart watches into a key holiday item. Retailers and manufacturers should all be preparing now for a smart watch push during the holidays.

Parks Associates examines the smart watch industry in two recent research products—Smart Watch: Extending the Mobile Experience and Smart Watch and Beyond: New Mobile Experiences. For more information, click here.

Further Reading:

• Smart watches heat up: Parks Associates predicts popularity for 2015 holiday season
• Digital Health and Smart Home Crossover Opportunities
• The Connected Consumer: Top Trends in IoT

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