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Friday, October 11, 2013

Wearable Device Revenues will Grow to $6+ Billion

More analysts are assessing the upside opportunities for mobile health and fitness-related apps. In a new assessment of the mobile healthcare market, ABI Research finds wearable wireless device revenues will grow to exceed $6 billion in 2018.

Of the four wearable device segments tracked, sports, fitness and wellness is the largest -- never dropping below 50 percent share of all device shipments over the forecast period.

"Fitness activity trackers are quickly gaining popularity in the market. Different from other more single-use or event-centric devices, activity trackers monitor multiple characteristics of the human body including movement, calories burned, body temperature, and sleep tracking," said Adarsh Krishnan, senior analyst at ABI Research.

Activity trackers are expected to grow at a 40 percent CAGR and overtake the 2013 shipment leader, heart rate monitors, in 2017.

The second largest market -- home monitoring devices -- which, primarily target the growing elderly care market, is also expected to witness strong growth over the next five years with overall device revenue growing at CAGR exceeding 39 percent.

This segment is also anticipated to see the development of cross-over devices such as personal emergency response devices supplemented with activity tracker features.

The remaining wearable wireless device segments are remote patient monitoring and the professional (On-Site) healthcare market.

These markets are unique due to relatively fewer suppliers and high device costs. Average costs for ECG monitors exceed $200; continuous glucose monitors exceed $800.

To date, blood pressure monitors and pulse Oximeters remain the most popular devices in these market segments.

These findings are part of ABI’s mHealth research service that looks at the rapidly developing market for wearable wireless sensors and their connectivity to gateway devices and smartphone applications across sports, fitness and wellbeing, home healthcare, remote patient monitoring, and on-site professional healthcare markets.