Apple Watch will drive the smartwatch industry, shipments set to reach 7.5 million in 2016: Canalys

Smartwatches are set to grow at a compound annual rate of 63 per cent from 2016 to 2020 (Source: Canalys)

Smartwatch shipments are set to grow significantly in 2016. According to research firm Canalys, the connected smartwatches are set to grow exponentially at a rate of 63 per cent annually from 2016 to 2020.

Canalys belives Apple Watch will drive the smartwatch industry thanks to its cellular connectivity. The latest smartwatches from Samsung and LG, namely Gear S2 classic and Watch Urbane LTE (2nd Edition) have also been impressive, notes Canalys.

“The phase 2 eSIM specification will enable more independent smart watches with a smoother user experience around cellular connectivity. Users will soon be able to easily choose among cellular providers and pay for monthly service,” said Daniel Matte, Analyst.

Canalys says smart watches will also gain from better app ecosystems around watchOS and Android Wear. Google is likely to make Android Wear 2.0 available sometime later this year which focuses on LTE enabled smartwatches.