Wearable technology is a market that is in early stage of evolution with growing adoption in various end-use segments such as fitness and wellness, healthcare and medical, industrial and military and infotainment sectors, but already, experts are estimating the market to be worth billions of dollars to the industry.
Recent years have seen the adoption of wearable technology pick up steam. This has in part been facilitated on part by the fact that the products are often seen as complimentary to a smartphone or other mobile device which have seen unprecedented growth in recent years overtaking both the PCs and laptops.
Wearable technology has seen interest from major players including the popular Google Glass and the Nike Fuelband, with players such as Apple and Acer rumored to be eyeing the market.
According to a new market report published by Transparency Market Research Wearable Technology Market – Global Scenario, Trends, Industry Analysis, Size, Share and Forecast, 2012- 2018, the global wearable technology market stood at USD 750.0 million in 2012 and is expected to reach USD 5.8 billion in 2018 at a CAGR of 40.8% from 2012 to 2018. North America is expected to maintain its lead position at 43.0% of the global wearable technology revenue share in 2018 followed by Europe.
Among all the wearable technology end use segments, the healthcare and medical segment held the largest revenue share followed by fitness and wellness in 2012. However, in 2018, the infotainment segment is expected to surpass the fitness and wellness segment driven by robust growth of smart watches and smart glasses. The healthcare and medical segment accounted for about 35.1% of the overall wearable technology market in 2012 primarily due to the rising aging population and increase in diabetic population.
Wearable technology is driven by factors like compactness, portability and easy use along with the multi-functionality and increasing applications of these products in various sectors. The increasing adoption of such technically advanced products among youth coupled with increasing demand for real time and actionable data will also fuel the growth of the wearable technology market. However, factors including high price and lack of consumer awareness are expected to hinder the market growth.
North America led the wearable technology market growth with high adoption rate and better consumer awareness in the region. The North America region contributed over 2/5th of the global wearable technology market revenue and will consolidate its lead position during the forecast period. Europe and Asia Pacific region will collectively account for about 49% of the market revenue by 2018.