Latest industry research assesses challenges of global wearable market
New industry research from ReportsnReports.com has revealed that by 2016, wearable device shipments will surpass 140m globally and will account for almost $30 billion in revenue.
The report, entitled “Wearable Technology Ecosystem 2015-2030: Opportunities, Challenges, Strategies, Industry Verticals and Forecasts”, argues the wearable market is anticipated to see a compound annual growth rate (CAGR) of 30% in the next half decade.
The important technologies facilitating consumer adoption include low cost sensors, wireless connectivity, active materials and energy, according to the report. Companies have been able to miniaturise these technologies and this has brought a range of products to market, from glasses to jewellery. A diverse range of companies are looking to capture this market’s potential – smartphone OEMs, wireless carriers, health insurers, retailers and startups. The main driver for this level of interest is the capability of wearable products to lie at the intersection of important modern trends such as healthcare, fitness, messaging and socialisation.
The report projects fitness and sports centric wearable device shipments to see a CAGR of 28% over the next half decade, totalling 80 million device shipments by the end of 2020. Wireless carriers will be able to benefit from over $71 billion in additional service revenue by the end of 2020, seeing a CAGR of close to 80% in the period 2015-2020, on account of wearables. Investors are set to inject over $1 billion into wearable technology startups in 2015 on account of continued innovation and crowdfunding campaigns. The wearable applications ecosystem will bring in close to $2 billion in revenue by the end of 2016.
Many industry reports - including this one - are focusing on mergers and acquisitions shaping the wearable market. This has been characterised by the announcement elsewhere that mineral explorer Logan Resources has pulled a reverse takeover and signed an acquisition agreement with Sebnets Technologies to form a wearable technology firm.
The acquisition will see Sebnets shareholders receive around 24.375 million common shares of Logan, along with an additional 15 million shares if Sebnets achieves certain revenue targets in the two fiscal years after the acquisition is complete.
With this acquisition, Logan will become a technology issuer and its management company, King & Bay West Management, will be combined with the Sebnets' assets, engineering, design and sales expertise. It highlights Sebnets' goal to become a wearable technology industry leader, with a focus on health, security and wellness improvement.
Sebnets plans to develop wearables related to sports, health, living, sleep, security and caregiving, with tracking technology that covers parameters such as calories, steps, body conditions, sleep quality, blood pressure, blood oxygen levels, heartbeat, air quality, surrounding temperature and humidity, and cardiograms. The company will distribute its products directly to consumers and through OEMs, and it has already established relationships with key distributors and e-commerce platforms in Asia, Europe and North America.
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