A new report from high-tech analysts Jupiter Research has shown the retail revenue from smart wearable devices, including smart watches and glasses, will climb to $19 billion by 2018, up from just $1.4 billion in 2013. Revenues will be driven by high costs for smart devices and their anticipated strong market demand.
The firm’s report also states that increasing consumer demand for smart products has lead to a large number of companies battling for dominance in the market, which is expected to intensify as the it grows. Nitin Bhas, author of the report, stated to the press: “It is worth observing that this change in adoption levels can also be attributable to heightened consumer awareness of wearable technology and a better visibility of product adoption, especially in the smart watch segment."
Also predicted in the report are several changes in the current wearable smart device market, due to a combination of developments in the app model and the rising use of embedded cellular connectivity within devices. Subscription revenues will be accessible to select areas within the market, and presently, some companies are attempting to develop recurring revenues through premium services offered through smart wearable devices, or by commissions for services rendered by virtue of the devices.
Additional findings included a need for vendors to confront key hurdles and critical issues from a social and technological perspective to encourage mass adoption of wearable smart device usage. The increasing popularity of these devices will also create new opportunities for app developers in the health, fitness, sports and communications fields.