Analyst firm Gartner has released a new report forecasting strong growth in the wearables market. It says that manufacturers will ship more than 310 million units this year, climbing to more than 500 million by 2021. Bluetooth headsets will account for much of the volume—150 million units in 2017 and 206 million in 2021. However, smartwatches will be the most profitable sector, bringing in $17.4 million in revenue by 2021.
The overall ASP [average selling price] of the smartwatch category will drop from $223.25 in 2017 to $214.99 in 2021 as higher volumes lead to slight reductions in manufacturing and component costs, but strong brands such as Apple and Fossil will keep pricing consistent with price bands of traditional watches," Gartner research director Angela McIntyre said. The firm believes that parents will be buying smartwatches for their children and predicts that children's smartwatches will account for nearly a third of shipments by 2021.