The First case of the COVID-19 was reported in the month of November 2019 in China. Since then, it has been spreading in the world rapidly, claiming thousands of lives around and millions of infected patients. The virus also has a huge impact on worlds’ economy and has closed many businesses and has shown a declining trend in most of the surviving industries.
A research Company IDC stated that, the global wearable industry will face a substantial slump in 2020, because of the Corona Virus (COVID-19) effecting logistics. As per the predictions the industry will only manage to achieve 9.4% of the growth and achieve 368.2 million consignments, in context of the sales of 2019 with a growth of 89%.
As per IDC, The Pandemic, COVID -19 will have the world wide impression in the initial first 2 quarters of this year.
Jitesh Urbani, Manager Research IDC said in statement that “Smart watches and wrist bands will be facing a short term decline. Overall 13% of decline is expected in the first quarter of the year, due to the recent events in China related to the pandemic, most of the Chinese companies are facing the issue of human resources availability and shortage of the components required for the production”.
“In the similar way, a drop of 7.1% is forecasted in the second quarter. In the 2nd half of the year a slight recovery is expected as the huddle for the logistics will gradually decrease and the lives of people will move towards normalization”.
In 2020, most of the consignments are likely to be in the Hearable or Smart Headphones domain. IDC has also predicted a sale of 203.8 million smart headphones in the current year. Hearable means the headphone having minimum of one smart feature, for instance heart rate monitoring, guidance, entertainment or health monitoring. A growth of 10.3% was given by IDC in their five year compound annual growth rate (CAGR) to this industry.
IDC has also predicted that, watches second ranked category will has 95 million consignments and along with a five year CAGR of 11.4%. Where Apple will certainly top this category.
In the initial month of this year, Apple bragged about its wearable segment which has achieved a size of fortune 150 company, which comprises of Apple watch and AirPods. The demand for AirPods, especially Airpod Pro can be termed as “phenomenal”.
On the other hand the wristband industry is likely to have a nominal growth of 1.8 percent in the five year CAGR.
As told, wearables should experience a five-year compound annual growth rate (CAGR) of 9.4 percent, with 526.8 million units shipped in 2024, IDC said.
As per IDC, the overall wearable industry will have a 9.4% of five year CAGR, with 526.8 million pieces distributed in 2024.