The Avi Cloud (AVC) report highlights that despite global economic recovery and a slowdown in China's growth, the Chinese smart hardware market is expected to shrink by 3% in 2016, reaching 41.01 million units. While innovative products like VR headsets, drones, and robots are gaining momentum, true market trends require more than just novelty—reliable, well-established solutions are essential to sustain long-term success.
In this context, "dry goods" refer to the core value behind the hype: the real, functional products that deliver consistent performance. According to AVC’s forecast for 2016, several categories of smart hardware will experience different trends:
Smart health devices are projected to grow by 10.5%, driven by increasing public awareness of health and the transition of medical-grade technology into consumer products. This trend reflects a broader shift toward personal wellness monitoring.
On the other hand, smart OTT boxes are expected to decline by 4.2%, reaching 11.62 million units. The market is maturing, leading to reduced value for consumers and rising costs, which is putting pressure on sales.
Smart home peripherals will also see a 4% drop in retail sales, down to 4.1 million units. While product reliability is expected to improve, certain segments like smart sockets may face challenges. However, smart speakers are showing strong growth, indicating a shift in consumer preferences.
Smart wearables, including smartwatches and fitness trackers, are forecasted to decline by 3.1%, reaching 23.08 million units. Sales of smart bracelets are expected to fall significantly, with domestic brands being most affected. Meanwhile, international players like Fitbit are entering the Chinese market, likely pushing up average prices.
VR headsets and glasses are expected to reach 700,000 units in retail sales, helping to offset the decline in smart wearable sales. AR products, however, remain in the conceptual stage, with no major retail launches expected to exceed 50,000 units.
Smart balance scooters are set for a turning point in 2016, as new regulations and standards from the government take effect, shaping their future trajectory.
Intelligent robots are beginning to appear in high-end hotels and airports in cities like Beijing and Shenzhen. Entry-level home robots with voice recognition features are anticipated to become more accessible, potentially entering households at toy-like price points.
As the smart hardware landscape evolves, the focus is shifting from rapid innovation to sustainable, user-friendly solutions that meet real needs.
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