Wearable technology is taking off

The Quintessence — Wed, 28 Sep 2016 09:27:08 +0000

The launch of the Apple Watch in early 2015 sparked strong growth in the market for electronic devices worn on – or even in – the body. After having grown steadily but less than dramatically in previous years, the wearable technology market saw rapid expansion in 2015. According to the market experts at CSS Insight, smart watches alone generated sales revenues of 9 billion dollars in 2015. Smart watches have thus become the biggest revenue drivers on the wearables market. In terms of volumes sold, however, it is fitness trackers which lead the wearables field. CSS Insight reports that their sales volumes alone doubled between 2014 and 2015.
Market experts forecast overall sales of 245 million wearable devices – including smart watches, fitness trackers, augmented and virtual reality headsets and wearable action cams – by as early as 2019. By comparison, the 2015 figure was estimated at 84 million units. The overall wearable market is forecast to be worth $25 billion by 2019 – meaning it will have tripled in five years. And CSS Insight’s forecasts are on the cautious side: high-tech market research specialist Juniper Research even predicts that revenues from sales of wearable devices will hit $53 billion by 2019.
The market is currently still being driven primarily by the consumer sector, but wearables are also becoming increasingly important in industrial applications, in the defence sector, and above all in healthcare. It is not without reason that chip manufacturers have recently been investing heavily in the wearables market. As one example, Intel recently acquired Canadian company Recon Instruments, a manufacturer of smart glasses and head-up displays. Other market players such as Apple, Motorola, Google LG, Huawei and French company Archos have also recently entered the smart watch and activity tracker market.
China is becoming a particularly attractive market for the industry. According to CSS Insight, China’s fitness tracker market is set to double by 2018, making it twice the size of the US market, and even two-and-a-half times that of the European market. One of the reasons is the number of strong Chinese brand names in the sector, including Xiaomi, which markets the Mi bracelet. The wearables market offers lots of potential – for both long-established companies and for start-ups.

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Wearables – the next big thing

The Quintessence — Wed, 28 Sep 2016 09:21:34 +0000

Whether on the wrist, in the sole of a shoe, or as smart glasses on someone’s nose – wearables really are “the next big thing” according to many market experts.

Wearables are miniature electronic devices worn on – or even in – the body. They are built into accessory articles, medical aids or clothing, and perform one or more smart functions. These mini-computers are also normally equipped with interfaces to communicate directly over the Internet, or they use a smartphone to exchange data.

Fitness tracking currently on trend

The best-known examples are wrist-worn fitness-tracking bracelets. According to a survey on the use of wearables among owners of smart watches and the like conducted by market researcher Fittkau & Maaß Consulting on behalf of the Internet World Messe trade fair organisation, fitness tracking is currently very much on trend: more than half those surveyed are using a device to measure and evaluate their health and fitness data. Saskia Müller, Internet World Messe’s Head of Congresses & Trade Fairs, explains: “Wearables are predicted to see a boom similar to that in smartphones in recent times, and our survey certainly confirms that early adopters are already committing to them.”

From the digital watch to the smart watch

Wearable electronics have been around almost as long as personal computers. It was some 30 years ago that manufacturers such as Casio first launched watches with digital displays and built-in calculators onto the market. However, the wrist-worn electronic technology back then was still light-years away from the age of global connectivity. Today’s wearables are able to communicate with smartphones, connect to the Cloud or link to machines, as well as monitoring heart rates and enabling users to explore virtual worlds.

Major potential in the business sector

Smart devices have long since also entered the business world. Their potential applications are many and varied, extending from production and logistics, through health management and surgery to lecture theatres. Experts like Werner Ballhaus, Partner and Head of Technology, Media and Telecoms at PricewaterhouseCoopers, see major potential for businesses in connected electronics such as smart glasses and watches: “Smart watches could be used to cut employees’ workloads in factories and enhance their safety. Hospitals could use them for real-time communication between doctors and nurses; and airports and hotels could use them as check-in devices. Those applications are still in their early days, but we will see them spread rapidly in the years ahead.”
Many people see great benefits from the mini-assistants in healthcare especially: measuring pulse, counting steps and monitoring calorie consumption. However, the technology will go much further still. Shirts with built-in electrodes that measure the heart rate. Socks that ensure feet are kept in the right position. “Electronic fashion” has not yet become established on the German market, but that is going to change. Timm Lutter from the German digital association Bitkom comments: “Connected functional clothing is the next logical step in wearables development. Ever smaller and more powerful sensors will fit ever more easily and efficiently into fabrics.”

Rapid developments on a dynamic market

A wealth of new wearables will be hitting the market over the coming years. Big technology companies are pushing forward with major capital investment – but it’s not only Google and co. who will be increasingly focusing on this market. Entirely new opportunities are also opening up for companies beyond the tech sector. Innovative new businesses have seen their chance to grab a slice of the dynamic market, resulting in lots of new start-ups in the wearables sector. All this is likely to generate major competitive pressures among a wide variety of different players, leading to rapid product development and so acting as a powerful driver of the Internet of Things.

On the way to the Internet of Things

Connectivity with external sensors is a particularly promising area. The latest-generation smart watches provide a clue of what is to come: they can be used to unlock the car door, for example, or to adjust the temperature in the living room before the owner gets home. With such applications, wearables are becoming an innovative link between people and the Internet of Things. “Wearables are the logical advance on the smartphone and tablet,” Lutter asserts. “They link the human body to the Internet of Things, making it an even more practical tool for everyday living.”

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