
Seven and a half million smartwatches with cellular connectivity will ship in 2016, rising to 53.6 million in 2020, according to Canalys. This represents a compound annual growth rate of 63 percent from 2016 to 2020.
In the short term, shipments are likely to be driven by a new Apple Watch with cellular connectivity. Samsung and LG have been very aggressive in bringing new cellular technologies to market, with smart watches such as the Gear S2 classic 3G/4G and the Watch Urbane 2nd Edition LTE, and will also play significant roles. Both the Tizen and Android Wear smart watch platforms already support cellular connectivity.
‘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. Many more smart watches with LTE and GPS/GNSS will also be released this year, thanks to the availability of new LTE Category 1 chipsets,” said Daniel Matte, Analyst of Canalys.

Wearable devices are all the rage. Fueled by the growing popularity of fitness trackers and the Apple Watch, the global wearable device market grew 126.9 percent in Q4, bringing total annual shipment to 78.1 million units, a rise of 171.6 percent, according to IDC.
Apple’s magic formula for success has continued with the Apple Watch. The highly-sought after smart watch dominated the market with nearly seven million units sold since launch, according to Canalys.