A report from Juniper research which is authored by James Moar has found a growing rise in the market for smart wearables. The report predicts that shipment for smart clothes and smart glasses will reach up to 350 million in 2020 as compared to 224 million in 2018. The report has determined that the main challenge for smart wearables is to provide either concrete benefits or specialized and in depth data for analysis.
This report has only focused on smart wearables which include smart watches, smart glasses, fitness trackers and smart clothing.
Findings of the report:
- The report has found that health wearables will bring in the most revenue due to their subscription business model such as the one used by AliveCor and Quell.Such companies might generate a revenue of up to 2.5 million USD by 2022.
- Smart glasses and smart clothing will be the fastest growing industries at 98 percent and 102 percent compound annual growth rate respectively. Improvements in VR and AR technology will be responsible for the growth of the former and upgraded smart textile tech will be responsible for the growth of the latter. Smart clothing will hit 7 million shipments by 2020 and 30 million by 2022
- The smart wearable market will become more biased towards software as compared to hardware. Currently, most wearable companies rely heavily on hardware purchases for revenue generation. However, in the future, companies will have to expand in an aggressive manner and invest considerably in marketing to promote their products.
- The market in Asia and China specifically will increase rapidly. 75% of smart wearable shipments to China will be single-function fitness trackers as compared to 40 percent in North America and 50 percent in Western Europe.
- There is also a rising trend in smart wearables targeted at children.