– UK smart wearable sales in 2021 will increase by 16% compared to the previous year
– Active development of wearables in medical and industrial fields
– Transition from activity-centric to smart wearable
UK market size and trend
As consumer interest in wearable products grows, global companies are actively investing in and acquiring wearables. Apple entered the health wearables market and Google acquired smartwatch company Fitbit. In particular, in 2020, in response to COVID-19, wearable technology has been actively used and has become a driving force for further growth of the market.
As wearable technology gradually developed, various products were launched, and in particular, the sales volume of electronic products increased by 8% compared to the previous year, reaching 610 million units.
UK consumers in 2021 are buying smart wearables, reflecting their interest in health. The smart wearable field is growing rapidly, with sales in 2021 increasing by 16% compared to the previous year, and among them, the sales of smart watches increased from 2020% in 15 to 2021% in 17. According to market research firm Euromonitor, the wearable electronic device market is expected to grow continuously over the next five years and reach 5 million units by 2026.
<Sales of wearable electronic products>
(Unit: million units)
[Source: Euromonitor]
Wearable electronics major trends
Among wearable devices, Earwear and Watch grew by more than 39% compared to the previous year, and the top five companies, Apple, Xiaomi, Samsung, Huawei, and Fitbit (Fitbit) is leading the market.
In 2021, Apple was the leading wearables supplier with a 30.3% market share, building a strong position in smart wearables with the Apple Watch. Smart wearables are seen in part as an additional accessory for smartphones, so many consumers who own an iPhone choose the Apple Watch for greater convenience and compatibility with their phone.
Meanwhile, as consumer demand increases, luxury watch brands such as Tissot, TAG heuer, and Montblanc are also expanding their investment in developing smart wearable products.
As concerns about health are increasing due to COVID-19 and interest in wearable tracking functions is increasing, wearable development in the medical and industrial fields is actively progressing. Electronic tag technology that can remotely monitor the health of the elderly is being developed as a small hearing aid device, a smart watch that measures electrocardiogram/blood pressure, and a wearable equipped with radio frequency identification. It is also working hard to develop smart clothing for monitoring epilepsy patients.
The development of smart patch technology that detects respiratory infectious diseases is in full swing by accelerating smart patch research, and by measuring individual biometrics, nutritional status analysis and intake plans are presented with a smartphone app to warn of the risk of developing type 2 diabetes.
Market trends by product type
Wearable electronic devices can be broadly divided into activity wearables and smart wearables. In 2021, smart wearable electronics are showing the highest sales growth rate thanks to continuous upgrades and investment in high-end models that meet consumer demand. This is due to the fact that consumers spend a lot of time at home during the COVID-19 period, the daily life and activity level of consumers has changed, and the need for personal health check has increased.
Among activity wearable devices, the activity band is expected to decrease by 2026% by 18.4, and the market is gradually shifting to the smart wearable field.
<UK wearable electronic device sales by type (2016-2026)>
(Unit: million pounds, %)
[Source: Euromonitor]
UK import trends
*Based on HS CODE 8517.62 (machines (including switches and routing devices) for receiving, converting and transmitting, and playing back audio, video or other data)
ㅇ As of 2021, imports of HS Code 8517.62 including wearable electronic devices were 57 billion dollars, with the largest importing countries being China (3000%), the Netherlands (40%), and Vietnam (14.5%), mostly from China. can confirm. Half of the top 7.6 countries are Asian countries, with Korea (10%) taking 0.17th place.
<Import Trends in the UK's Top 3 Countries for the Last 10 Years (HS CODE 8517.62)>
(Unit: thousand dollars, %)
[Source: Global Trade Arlas (GTA), ranking as of 2021]
<The size and trend of imports from Korea for the past 3 years (HS CODE 8517.62)>
(Unit: thousand dollars, %)
[Source: Global Trade Atlas (GTA), ranking as of 2021]
Competitive trends and major competitors
In the UK wearable electronics market in 2021, Apple occupies the top market share with 19.4%, while Xiaomi, Samsung, and Fibit will occupy the market with 1% and 9.6%, respectively. are doing With the Apple Watch, Apple has a strong presence in smart wearables, making it a leader in wearable electronics. Xiaomi is popular among British consumers due to its high cost-effectiveness and competitive price. In addition, Samsung, which has shown strong growth in smart wearables in recent years, is establishing a new position with the introduction of the Galaxy Watch.
<British wearable electronic device market share in 2021 (based on sales volume)>
(unit: %)
[Source: Euromonitor]
Distribution structure, tariff rate, and import regulation and certification
The store-based retail business is gradually decreasing, and the non-store sales rate is gradually increasing. In particular, it can be seen that the distribution of e-commerce through the Internet has increased the most.
<Wearable Electronic Product Sales Channel>
(unit: %)
[Source: Euromonitor]
The tariff rate of HS Code (8517.62) is 0.00% for all countries.
ㅇ Regulations and certifications related to the import of electronic equipment
-(Environmental Regulations) According to the 'Waste electrical and electronic equipment directive', manufacturers, sellers and distributors are responsible for recovering and recycling their products when consumers dispose of electronic equipment.
<Main contents of the Electrical and Electronic Equipment Waste Disposal Guidelines>
[Source: UK Government website (gov.uk)]
-(Consumer Safety Regulations) Imported household electrical appliances must comply with the following consumer safety regulations.
1. Electrical Equipment (Safety) Regulations 1994
- This regulation supersedes the Low Voltage Electrical Equipment (Safety) Regulations 1989 and is dated 1995 January 1.
was fermented The requirement that electrical equipment be safe includes death or injury to persons or livestock.
Protection against danger and property damage is included. Electrical equipment that meets the requirements of the regulation includes
CE marking or packaging/information sheet shall be attached.
2. Plugs and Sockets, Etc (safety) Regulations 1994
- This rule applies to household products including plugs and sockets.
*For more information, see Electrical Equipment (Safety) Regulations 2016 – GOV.UK (www.gov.uk)
[Source: UK Government website (gov.uk)]
-(Certification) When certain products* produced outside the EU are exported to the UK, they receive CE certification (Communaute Europeenne Marking) indicating that the product has complied with the essential requirements (health, safety, and environmental protection laws), and the product is CE A mark must be affixed. Until January 2023, 1, the CE mark can be used when selling certain products in the UK or EU market, and from then on, products must be sold in the UK using the UKCA mark. More information on UKCA accreditation can be found at Using the UKCA marking – GOV.UK (www.gov.uk).
* CE mark is required for products in a total of 24 fields including home appliances, telephones, computers and medical devices.
implication
The UK wearable electronic device market is showing steady growth, and demand is expected to continue in the future, and products with practicality and style are catching the eyes of consumers. In addition, as consumers are willing to spend a lot of money on high-end wearable electronics, especially smart wearables, luxury watch brands are also increasingly investing in and interested in adding smart features.
Smart wearables, which combine smart functions with things such as medical devices and glasses, are one of the emerging fields in the wearable industry, and the market is expected to grow continuously thanks to the entry of new brands and increasing popularity.
Our company is interested in the growth of the smart wearable market and it is necessary to target major retailers centered on e-commerce by launching innovative products corresponding to leading brands, and developing and supplying related applications can also be an important strategy. .