Smart Watches With Fitness Apps Slowing Growth of Activity Trackers, Says NPD
Smart watches are catching up to activity trackers and are on pace to reach the wrists of 9 percent of the U.S. adult population by 2016, said an NPD report. As smart watch penetration grows, activity tracker penetration will plateau…
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and peak at 32 million units after significant growth for four years. “The smartwatch will clearly begin to take a bite out of the activity tracker market moving forward,” said analyst Eddie Hold, citing health and fitness apps on smart watches as the reason consumers are moving away from simple trackers. The activity tracker is under threat not only from the smart watch but from its limited use cases, said Hold. Counting the number of steps taken daily limits the addressable market size, and 40 percent of activity tracker owners stop using the device within six months, he said. Sports offer an opportunity for activity trackers, said Hold, citing demand for sophisticated trackers with GPS support, heart rate sensors and rugged, waterproof design. Third-party activity apps will be key to the growth of the sport-related activity tracker market and to the long-term “stickiness” of the smart watch, he said.