Mobile smart wearable devices to be worth $19 billion by 2018
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Mobile smart wearable devices to be worth $19 billion by 2018

New findings from Juniper Research (www.juniperresearch.com), has revealed that the retail revenue from smart wearable devices, including smart watches and glasses, will reach US$19 billion by 2018 compared with $1.4 billion this year. Revenues will be driven by high price points for these devices allied to their anticipated strong market demand.

In its latest report, Juniper Research has revised upwards the adoption of devices in the two key segments of consumer electronics "Multimedia & Entertainment," and "Multi-functional" devices. Revisions such as these are common in the early years of a new technology category, and reflect the latest announcements from vendors across the sector.

"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," says report author Nitin Bhas.

The report anticipates that over time several changes will occur in the smart wearable device market, partly as a result of developments in the app model, and partly due to the increasing use of embedded cellular connectivity within devices. Subscription revenues will be possible for certain sectors within the market.

Companies such as Fitbit and FiLIP are seeking to develop recurring revenues through premium services - facilitated via the smart wearable device or through commission for a service rendered by virtue of the device.

For example, FiLIP is an FCC approved app-based communication watch for children which combines GPS, Wi-Fi and cellular capabilities to keep parents and kids connected via two way voice calling, messaging and location functionalities. The company’s service model is expected to include an up-front device price and an on-going monthly plan.

 

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