Tuesday, April 16, 2024

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COVID-19 Slows down Wearables Markets Significantly

The global outbreak of Corona Virus has managed to disrupt not only our day to day lives but many industries in general. The loss caused by this virus globally is already colossal. Supply chain has been disrupted and several markets are facing the consequences.

Wearables market is obviously bearing this loss as well. In last month’s edition of International Data Corporation’s research, the study has predicted that the market will ship around 386.2 million units around the world. This only shows an annual rate of growth of merely 9.4%. This is a significant low point as compared to last year’s annual growth of 89%. Expect Compound Annual Growth Rate (CAGR) has also reduced significantly for next five years due to this disruption as well. Smartwatches are still in the lead in terms of market products but hearables also have also shown a significant rise in popularity as well.

“Watches and wristbands will be negatively impacted in the short term and we anticipate a 13% decline collectively during the first quarter as many factories in China struggle with manufacturing due to labor and component shortages,” says Jitesh Ubrani “Similarly, a decline of 7.1% is expected in the second quarter followed by mild recovery in second half of the year as supply constraints slowly begin to disappear and manufacturing returns to normal.” Jitesh is the manager of research for International Data Corporation.

Disruption in supply chain during the first quarter of ongoing year is the definite cause of this downfall in the market. Corona Virus originated from China which obviously manufactures most of the wearables and good related to it. Things have started to get back to normal in the country already but Corona Virus has started to cause damage around Europe and United States by now. Most of the countries are affected by this shockwave and lockdowns are being imposed by the government to contain the situation.

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