Skip to main content

Emerging Business Models for Smart Wearable Devices

A "smart wearable" product is an app-enabled computing device which is worn on, or otherwise attached to the body, while being used. In some cases a wearable device is also considered a fashion accessory.

Most wearable devices are always on and accessible at any time with a constant interaction between the user and the device. This definition covers a wide range of devices from watches to displays which can either work independently or in conjunction with an external platform -- such as the smartphone or media tablet.

The outlook for wearable technology applications is very bright. New findings from a recent market study has revealed that the smart wearable device shipments -- including smart watches and smart glasses -- will approach 130 million by 2018, that's 10 times more than was forecast for 2013.

The study, performed by Juniper Research, notes that market development activities in 2014 will likely add new vendor momentum and increased early-adopter user applications.


Market Opportunities for Wearable Technology

Juniper’s market assessment contends that the attractiveness of wearable technology has led to the emergence of a host of players competing against each other and competition is expected to intensify.

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

However, with wearables set to become a crowded marketplace, Juniper Research believes that all these players will have a unique opportunity to take advantage of relevant and specific product categories or sub segments within the overall market.

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

Revenue may be generated for companies, for example Fitbit and FiLIP, involved in the market through subscription to a service which is facilitated by 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 functionality. The company's business model includes an up-front device purchase and an on-going monthly service fee.

Other key findings from the market study include:
  • Smart wearable device vendors need to address key hurdles and critical issues from a social and technological perspective to achieve mass adoption.
  • Significant opportunities will arise for software application developers – across the health, fitness, sports and communications segments.

Popular posts from this blog

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

5G Fixed Wireless Access Revenue to Reach $24B

Available Internet access at an affordable cost is essential for everyone to participate in the Global Networked Economy. The deployment of fifth-generation (5G) wireless communications infrastructure is enabling the introduction of lower-cost broadband services in some markets. Fixed Wireless Access (FWA) allows mobile network operators (MNO) to deliver high-speed Internet connections in areas that have either insufficient or no prior wireline broadband access services. It's also used in urban, suburban, and rural areas where fiber optic communication is considered too expensive to install and maintain. With this new technology, MNOs have the potential to provide broadband capability at similar levels to fiber optic networks. Fixed Wireless Access Market Development Therefore, FWA can be used to supplement existing wired broadband Internet service offerings, provide additional broadband capacity, or act as a backup service for home or business applications. Although FWA is well es