The connected watch market - Italy

1.1 Definition and scope of study

A smartwatch is a mobile device with a touchscreen display, designed to be worn on the wrist. The main benefit of a smartwatch is that it keeps you constantly updated without you having to whip out your smartphone. While early models were only able to perform basic tasks, such as calculations, translations, and games, more updated versions are true wearable computers. Many smartwatches, in fact, are capable of running applications, surfing the internet and duplicating all the contents stored in a smartphone via Bluetooth connection. The market of smartwatches can be segmented according to operating system (usually Watch OS powered by Apple or Android Wear OS provided by Google), display type, application (such as personal assistance, medical, sports), and geography.

The global smartwatch market was valued at $48.1 billion in 2018, and it is expected to reach a market value of $130.5 billion by 2024, registering a CAGR of 18.2% during the period.

In Italy, the market of smartwatches is experiencing an important growth. Just a few years after the product launch, they have gained a relevant position in the technological market, becoming an essential accessory in every day’s life. Therefore, people are nowadays more willing to pay for a performing smartwatch, which can provide contactless payments, blood pressure and pulse measuring systems, internet connection and so on. During 2020, indeed, there has been a progressive and significant market shift towards more expensive models, and almost 7.7 million of Italian citizens have purchased a smartwatch during the same year.

Given the positive feedback and consensus that smartwatches have raised through consumers, the average price of such product is increasing sharply. The major players in this market are Apple, Samsung and Huawai, but there are some other brands, especially in the Asian markets, that are expected to gain a significant position in the global market in the coming years.