Wearable devices appear to be growing in popularity in the U.S., defying a perception that the market has stalled, Kantar Worldpanel said Aug. 30.

The proportion of Americans over the age of 16 who own wearables, such as activity trackers and smartwatches, has climbed to nearly 20% from 15% a year ago, the shopping behavior expert said, citing research by its telecommunications industry monitor, Kantar Worldpanel ComTech.

While activity trackers continued to account for a larger proportion of total sales of wearables at 65%, smartwatches showed greater momentum, with more than a 50% year-over-year sales growth, compared with 15% for activity trackers, the firm said.

"The reports of the death of wearables, a segment comprised of both smartwatches and activity trackers, has been somewhat exaggerated this year," said Dominic Sunnebo, a global strategic insight director for Kantar Worldpanel ComTech. "Despite a lackluster track record of growth, demand for wearables continues to exhibit modest growth."

Fitbit, an activity tracker produced by San Francisco-based Fitbit Inc., accounts for 47% of wearables owned by U.S. consumers, versus 16% for Apple Inc.'s Apple Watch, the firm said. Apple Watch, which has attracted a higher customer satisfaction than Fitbit, accounts for 41% of the smartwatch category, it added.

Sunnebo highlighted recent efforts made by Fitbit, including the launch of the Fitbit Ionic, which marks a shift from a simpler activity tracker to a more advanced smartwatch with multiday battery life and a contactless payment feature. The new device includes third-party apps, which Sunnebo believes shows the maker is focused on developing partnerships. Fitbit, which suffered a 40% year-over-year sales drop in the second quarter, said it expected the smartwatch to drive its second-half performance.

"Fitbit has taken a different approach with the new Ionic than many competitors in its first real foray into the smartwatch arena, doubling down on fitness and health with improved heart rate tracking, the ability to monitor oxygen blood levels, and built-in GPS for phone free runs or rides," Sunnebo said. "The many failed Android Wear attempts and subsequent pull outs by manufacturers, show that focusing away from health and fitness towards notifications and Smartphone replacement-type user cases is a risky road, and one that Fitbit has carefully chosen to avoid."

Recent sales trends of wearable devices support the findings.

Consumer electronics retailer Best Buy Co. Inc. on Aug. 29 said its robust fiscal second-quarter results were partly supported by wearables devices. The Richfield, Minn.-based company lifted its sales and operating profit outlook for fiscal 2018. On Aug. 2, Swiss wearables maker Garmin Ltd. lifted its earnings outlook for 2017, citing demand for advanced wearables. Garmin said it was focused on growth opportunities in advanced wearable devices.

Despite signs of recent growth, Kantar Worldpanel ComTech reported that only 4.6% of people who do not own a wearable device have said they will probably or definitely buy one in the next 12 months, the research firm said. Consumers who showed no interest in buying wearables cited reasons such as high prices or smartphones meeting their needs.