The global wearable technology market stood at US$2.05 bn in 2015 and is poised to reach US$5.85 bn, expanding at a 40.8% CAGR from 2012 to 2018. On the basis of end use, the healthcare and medical products segment will continue to dominate the market until 2018, with a valuation of US$2.065 bn. However, due to the growing number of smartphone users, the infotainment segment will expand at a significant CAGR during the same period. Geographically, North America will remain the dominant regional segment all throughout 2018. Due to increasing affordability and awareness amongst consumers, the region will also rise at a remarkable CAGR of 41.4% during the same period.
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Compact and Multi-functional Features of Wearable Technology Products to Attract Large Consumer Base
The compact and multi-functional features of wearable technology products are in compliance with the increasing demand for portable, easy-to-use, and technologically advanced products. Moreover, there is an increasing application of wearable technology products across different industries such as infotainment, fitness and wellness, healthcare and medical, and industrial and military. For instance, devices such as hand-worn terminals and heads-up displays are finding applications in areas such as construction and industrial and military sector apart from the healthcare and fitness sector. Furthermore, the rising trend purchasing technically advanced products as a status symbol amongst the youth are offering fresh opportunities to manufacturers. These factors, collectively, are driving the global wearable technology market.
High Price of Wearable Technology Products to Restrain Large Scale Adoption
The wearable technology is relatively new and there are less number of players operating in the market, as a result, these products are expensive. The high price of these products is making it unaffordable for the lower class to middle-class consumers, thereby hampering the large scale adoption of the wearable technology products. Moreover, as this technology is new, lack of consumer acceptance is another impediment in the growth of the market.
However, manufacturers are focusing on the development of quality products that are sleek in design and come at a lower price to improve sales. This factor is likely to open up new avenues for both new and existing players to capture the attention of consumers with better design and technology.
The information presented in this review is based on a Transparency Market Research report, titled, ‘Wearable Technology Market – Global Scenario, Trends, Industry Analysis, Size, Share And Forecast 2012 – 2018.’
Players in the global wearable technology market offer only some specific products and prefer to operate in limited application segments. For instance, Adidas, Nike, Fitbit, Philips, and Timex are some of the key players in the fitness and wellness segment. Due to limited players, the competitive rivalry in the market is low. However, product innovation by big players is anticipated to push other players to develop better products with advanced technologies in the near future, states Transparency Market Research (TMR) in its new study.
“Large scope for funding and less level of competitive rivalry present immense opportunities for new entrants. However, new entrants should be sound enough to match the advanced technologies of existing big players to make a mark in the market,” says the author of this report.