Skip to main content

Smart Wearable Device Revenue will Reach $19B

Wearable devices have been in existence for a number of decades, but it's only recently that they have captured the imagination of the general public. Juniper Research has revealed that the retail revenue from smart wearable devices -- including smart watches and glasses -- will reach $19 billion by 2018 compared with $1.4 billion this year.

Moreover, revenues will be driven by high price points for these devices allied to their anticipated strong market demand.

Based on the findings from its latest market study, Juniper has revised upwards the adoption of devices in the two key segments of consumer electronics ‘Multimedia & Entertainment’, and ‘Multi-functional’ devices.

Revisions such as these are common in the early years of a new technology category, and reflect the latest announcements from vendors across the sector.

"It is worth observing that this change in adoption levels can also be attributable to heightened consumer awareness of wearable technology and a better visibility of product adoption, especially in the smart watch segment," said Nitin Bhas, senior analyst at Juniper Research.

Service Revenue Opportunity from Applications

Juniper anticipates that over time several changes will occur in the smart wearable device market, partly as a result of developments in the software app model, and partly due to the increasing use of embedded cellular connectivity within devices.

Subscription revenues will be possible for certain sectors within the market. Companies such as Fitbit and FiLIP are seeking to develop recurring revenues through premium services -- facilitated via the smart wearable device or through commission for a service rendered by virtue of the device.

For example, FiLIP is an FCC approved app-based communication watch for children which combines GPS, Wi-Fi and cellular capabilities to keep parents and kids connected via two way voice calling, messaging and location functionalities.

The company’s service model is expected to include an up-front device price and an on-going monthly subscription plan.

Other key findings from the market study include:
  • Vendors need to address key hurdles and critical issues from a social and technological perspective to achieve mass adoption.
  • Significant opportunities will arise for app developers – across the health, fitness, sports and communication segments.

Popular posts from this blog

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul