Description Consumer, healthcare, and industrial will drive the rapidly-expanding wearable industry to a potential value of $90B by 2020. But how it will evolve, and who will succeed?Three markets will drive the wearable industry
Wearable electronics is one of the consumer market’s hottest topics. Giants like Apple, Samsung, Xiaomi, and Huawei are now competing for a slice of a very promising pie. Regarding our report’s analysis, we estimate that the wearable industry will reach 295M units by 2020, with a market value of $95B. Three markets will drive this impressive growth: consumer, healthcare, and industrial. Wearable technology is expected to be part of the IoT revolution, bringing useful information directly to the user in a more natural and friendly way than with traditional electronic devices. We expect the consumer market, which is mostly comprised of fitness bands and smart watches to grow faster than the other two. The healthcare market, which covers devices like hearing aids, blood pressure monitors, and back monitor sensors, is expected to grow at a lower rate, since this market has already been growing for many years. Regarding the industrial market, we expected slow, steady growth through 2019, with a significant uptick commencing in 2020.
Until recently, wearable electronics were often associated with the healthcare market - typically, bulky medical devices with only a few features and not optimized for “customer- friendly” usage. Often times, these devices (i.e. hearing aids and blood pressure monitors) perform a single task and are solely dedicated to patient monitoring and/or well-being. They are not “smart devices” - their only mission is to accurately complete a single task. We believe that a large part of the healthcare market will evolve in association with the consumer market, eventually blurring the lines between healthcare and consumer devices. In fact, we think that the healthcare market will slowly merge with the consumer one, resulting in personalized medicine that involves self-monitoring of one’s health with smart and reliable devices. However, these kind of devices, which require a highly accurate, highly reliable tracking of biological signs in a non-invasive fashion, are not expected for another few years.
The “three horses of the wearable industry” have been released…
Three device types are expected to successfully reach the market: smartwatch, smart glasses/HUD, and smart clothing. Smart glasses and HUD are expected to hit the market with high volumes around 2019. Specific to the consumer market, it’s evolved with two device types. The first type are wrist-worn devices that target the healthcare and consumer markets. It started many years ago, with wrist-worn devices from players like Polar, Suunto, and Garmin, operating in a niche market: sports. Another wave of smart bands appeared in 2008, fueled by new players like Fitbit and Jawbone; this new generation mimics the smartphone approach in that they use MEMS technologies to reduce size, increase performance and decrease power consumption. These smart devices were only able to track and digitalize the body’s real-time activity via an accelerometer, which delivered little added value to the customer. Moreover, some technical and reliability issues led to a chaotic experience for the first batch of customers. Recently, a new tech wave occurred three years ago with players like Samsung and Pebble pushing the smartwatch market, but they failed to reach a mass market due to a one-sided technological approach. Apple, the latest entrant in the wearable landscape with its Apple watch, is expected to sell 16 - 20M units this year, which would quadruple the total number of devices that its competitors sold last year (4.7M units in 2014). Why could the Apple watch achieve success? This report discusses three factors: mature technology, ecosystem, and marketing.
Regarding the industrial market, we believe that smart glasses/HUD and smart clothing will be well-suited for industrial and military applications. Virtual reality HUD and smart clothing will enhance workers’ and soldiers’ capabilities, increasing productivity and security. Such a market is evaluated at around $4B by 2020.
Wearable is certainly a promising industry – but who will profit? Wearable electronics’ market value is likely to grow from $22B in 2015 to more than $90B by 2020, with a CAGR of 28%. All these evolutions will probably lead to a mass-market adoption, here we expect more than 134M, smartwatches by 2020, along with 1.3M smart glasses/HUD by 2018. In this report, we’ll analyze the current wearable industry, what the landscape is like, who the key players, and how the industry will evolve.
The wearable industry greatly interests big companies seeking a new revenue source once the smartphone business levels off. This report highlights the expected sensors as of today, and the upcoming technologies which can sustain such developments.
MEMS enabler for smart devices with sensor fusion and context awareness
Today, the MEMS sensors industry has acquired from the smartphone market a strong experience in inertial sensors, microphones, and pressure or environmental sensors. Based on this experience, the MEMS players have pushed the boundaries of performance and size. Sensors are now small enough, reliable enough, and accurate enough to be included in a pocket-sized device of only 9cm3, while delivering a performance comparable to a smartphone from 2013! These sensors are the ones that we’ll find in our wearable devices until 2018. The integration of biosensors (HRM, sweat sensor, skin temperature) is more difficult due to lack of experience, and technical challenges. Moreover, battery limitation is pushing the industry towards more optimization, even on the hardware side, through either packaging innovation or new designs with lower power consumption.
Software is another area that’s acquiring value, with sensor fusion creating smarter sensors. Such improvements have led to sublime new features like context awareness or “always-on” sensors, which has increased device intelligence. All these improvements will lead the global sensors market for wearable from 112M units in 2014, to 835M units by 2020, which is proof that this market is still in its infancy.
300+ slides, providing:
- Market data on sensors dedicated to wearable and mobile healthcare
- Unit shipments and revenue by sensor type
- Average selling price analysis and expected evolution
- Application focus on key existing markets and the most promising emerging ones
- Functions used, critical specification requirements, assembly level, and technology choices
- What are the major drivers? What will the market look like in 2020?
- An analysis of the major technology trends Evolution expected for current technologies: efficiency, price, etc.
- A deep understanding of sensors for the wearable industry, infrastructure, and players for the different business
- An extensive list of sensor manufacturers worldwide, and their technology offer
- A list of key integrators worldwide