Wearable Technology Market Shows Rapid Growth: Berg
Total shipments of wearable technology devices are expected to reach 64 million units in 2017, the report said.Sales of smart glasses, smart watches and wearable fitness trackers reached 8.3 million units worldwide in 2012, up from 3.1 million devices in the previous year, according to a research report from the analyst firm Berg Insight. Growing at a compound annual growth rate of 50.6 percent, total shipments of wearable technology devices are expected to reach 64 million units in 2017, the report said. "A perfect storm of innovation within low power wireless connectivity, sensor technology, big data, cloud services, voice user interfaces and mobile computing power is coming together and paves the way for connected wearable technology," Johan Svanberg, senior analyst at Berg Insight, said in a statement. "The first generation of products appeal to specific markets and certain use cases, but refinement in design, technology and connectivity will broaden application areas and speed up market adoption." The report noted that while today, wearable fitness and activity trackers constitute the vast majority of the shipments, by the end of the forecast period, smart watches would incorporate much of the functionality of these and will then be the largest wearable device segment.
"Initially, the wrist is the most attractive location for wearable devices, which is shown by the success of the Pebble smart watch and the popularity of wristband activity trackers such as the Nike Fuelband and the Fitbit Flex," Svanberg said. "However, today’s devices need to evolve into something more than single purpose fitness trackers or external smartphone notification centers in order to be truly successful."