The latest Canalys report estimates over 17 million wearable bands to ship this year, which will increase to 23 million units next year and around 45 million by 2017.
“Though currently a relatively small market serving fitness enthusiasts, wearable bands represent a massive opportunity in the medical and wellness segment,” wrote Canalys. “2014 will be the year that wearables become a key consumer technology, as the smart band segment is estimated to reach 8 million annual shipments.”
Based on the report, 1.6 million smart bands have been shipped in the second half of 2013. Fitbit’s Flex and Force bands are leading the way in basic band category with a full 58 percent of the market share, followed by Jawbone with 21 percent and Nike with 14 percent.
In the smart watch market, Samsung’s Galaxy Gear stands as the lead with 54 percent of all smart band shipments in that period. Sony is the runner-up with 19% of shipments, closely followed by Pebble with 16% of the market.
Canalys analyst Chris Jones, noted in a statement “Samsung launched the Galaxy Gear with a major marketing push that gained significant consumer interest. Shipments of the device took Samsung to the top of the smart band category, though disappointing sell-through will necessitate more promotional activity in coming months.”
Canalys believes that high-margin smart bands with sophisticated sensor technology can offer vendors enormous profit potential.
“Android will be critical for developing the smart band app ecosystem, though significant changes will be required before it is suitable for wearable devices,” said Canalys Analyst Daniel Matte in a statement. “Canalys expects Android to enter the smart band market soon in a meaningful way. Battery life and quality of sensor data will be vital metrics of success for all smart bands.”
