Wearable technology market forecast to 2022 by scalar market research

1

Wearable Technology Market, by

Products and Application –

Global Revenue, Trends,

Growth, Share, Size and

Forecast to 2021

October 2016

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About Scalar Market Research

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Table of Contents

1 MARKET OVERVIEW ...................................................................................................................... 11

1.1 Research Methodology ......................................................................................................... 11

1.1.1 Primary Data ................................................................................................................. 11

1.1.2 Secondary Data ............................................................................................................. 12

1.1.3 Machine Learning .......................................................................................................... 13

1.1.4 Research Scope ............................................................................................................. 13

1.1.5 Years Considered .......................................................................................................... 14

1.1.6 Currency & Pricing......................................................................................................... 14

1.1.7 Market Segmentation ................................................................................................... 15

2 EXECUTIVE SUMMARY .................................................................................................................. 16

2.1.1 Global Wearable Technology Market – Executive Summary ........................................ 16

3 MARKET DYNAMICS ...................................................................................................................... 17

3.1 Drivers ................................................................................................................................... 17

3.1.1 Rising Penetration and Adoption of Smart Mobile Devices .......................................... 17

3.1.2 Wearable Ecosystem Players Profiting from Substantial Venture Capital Funding ...... 18

3.1.3 Significant Adoption of Wearable Products across Numerous Application Sectors ..... 19

3.1.4 Proliferation of IoT ........................................................................................................ 19

3.2 Restraints .............................................................................................................................. 21

3.2.1 Inadequate Battery Life................................................................................................. 21

3.2.2 Data Confidentiality and Security Concerns ................................................................. 21

3.3 Opportunities ........................................................................................................................ 22

3.3.1 Multi-Functional and Highly Compact Wearable Products........................................... 22

3.4 Future Outlook ...................................................................................................................... 23

3.4.1 Adoption across Enterprises ......................................................................................... 23

3.4.2 Wi-Fi Everywhere .......................................................................................................... 23

3.4.3 Create New Business Opportunities ............................................................................. 23

4 INDUSTRY ANALYSIS ...................................................................................................................... 25

4.1 Value Chain Analysis ............................................................................................................. 25

4.2 Venture Capital Funding in the Wearable Technology Marketplace .................................... 26

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4.3 Patents/Patent Applications - Wearable Technology Market .............................................. 29

5 WEARABLE TECHNOLOGY MARKET, BY PRODUCTS ...................................................................... 33

5.1 Introduction .......................................................................................................................... 33

5.1.1 Global Wearable Technology Market Size & Forecast (US$ billion), By Products (2013 –

2021) ....................................................................................................................................... 33

5.2 Smart Clothing & Smart Glasses ........................................................................................... 34

5.3 Sleep Sensors ........................................................................................................................ 35

5.4 Smart Watches ...................................................................................................................... 35

5.5 Activity Monitors ................................................................................................................... 36

5.6 Augmented Reality (AR) Headsets ........................................................................................ 36

5.7 Continuous Glucose Monitors (CGMs) ................................................................................. 36

5.8 Heart Rate Monitors (HRMs) ................................................................................................ 37

5.9 Drug Delivery Devices ........................................................................................................... 38

5.10 Hand Worn Terminals ........................................................................................................... 38

5.11 Wearable Patches ................................................................................................................. 38

5.12 Jewelries ................................................................................................................................ 39

6 WEARABLE TECHNOLOGY MARKET, BY APPLICATIONS ................................................................ 40

6.1 Introduction .......................................................................................................................... 40

6.1.1 Global Wearable Technology Market Size & Forecast (US$ billion), By Applications

(2013 – 2021) ................................................................................................................................ 40

6.2 Infotainment ......................................................................................................................... 41

6.3 Fitness & Wellness ................................................................................................................ 41

6.4 Healthcare & Medical ........................................................................................................... 42

6.5 Industrial & Military .............................................................................................................. 42

6.6 Safety & Security ................................................................................................................... 43

6.7 Fashion & Lifestyle ................................................................................................................ 43

7 WEARABLE TECHNOLOGY MARKET, BY GEOGRAPHY ................................................................... 44

7.1 Introduction .......................................................................................................................... 44

7.1.1 Global Wearable Technology Market Size & Forecast (US$ billion), By Regions (2013 –

2021) ....................................................................................................................................... 44

7.2 North America ....................................................................................................................... 44

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7.2.1 North America Wearable Technology Market Size & Forecast (US$ billion), By Country

(2013 – 2021) ................................................................................................................................ 45

7.2.2 North America Wearable Technology Market Size & Forecast (US$ billion), By

Products (2013 – 2021) ................................................................................................................. 46

7.2.3 North America Wearable Technology Market Size & Forecast (US$ billion), By

Applications (2013 – 2021) ........................................................................................................... 47

7.3 Europe ................................................................................................................................... 48

7.3.1 Europe Wearable Technology Market Size & Forecast (US$ billion), By Country (2013 –

2021) ....................................................................................................................................... 48

7.3.2 Europe Wearable Technology Market Size & Forecast (US$ billion), By Products (2013

– 2021) ....................................................................................................................................... 49

7.3.3 Europe Wearable Technology Market Size & Forecast (US$ Billion), By Applications

(2013 – 2021) ................................................................................................................................ 50

7.4 Asia-Pacific (APAC) ................................................................................................................ 51

7.4.1 Asia-Pacific Wearable Technology Market Size & Forecast (US$ billion), By Country

(2013 – 2021) ................................................................................................................................ 51

7.4.2 Asia-Pacific Wearable Technology Market Size & Forecast (US$ billion), By Products

(2013 – 2021) ................................................................................................................................ 52

7.4.3 Asia-Pacific Wearable Technology Market Size & Forecast (US$ billion), By

Applications (2013 – 2021) ........................................................................................................... 53

7.5 Middle East & Africa (MEA) .................................................................................................. 54

7.5.1 Middle East & Africa Wearable Technology Market Size & Forecast (US$ billion), By

Country (2013 – 2021) .................................................................................................................. 54


Products (2013 – 2021) ................................................................................................................. 55


Applications (2013 – 2021) ........................................................................................................... 56

7.6 South America (SAM) ............................................................................................................ 57

7.6.1 South America Wearable Technology Market Size & Forecast (US$ billion), By Country

(2013 – 2021) ................................................................................................................................ 57

7.6.2 South America Wearable Technology Market Size & Forecast (US$ billion), By

Products (2013 – 2021) ................................................................................................................. 58

7.6.3 South America Wearable Technology Market Size & Forecast (US$ billion), By

Applications (2013 – 2021) ........................................................................................................... 59

8 COMPETITIVE LANDSCAPE ............................................................................................................ 60

8.1 Market Share Analysis of Key Players ................................................................................... 60

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9 COMPANY PROFILES ..................................................................................................................... 61

9.1 Google, Inc. ........................................................................................................................... 61

9.1.1 SWOT Analysis ............................................................................................................... 61

9.1.2 Recent Developments ................................................................................................... 63

9.2 Apple, Inc. ............................................................................................................................. 65

9.2.1 SWOT Analysis ............................................................................................................... 65


9.3 Nike, Inc................................................................................................................................. 68

9.3.1 SWOT Analysis ............................................................................................................... 68


9.4 Microsoft Corporation .......................................................................................................... 71

9.4.1 SWOT Analysis ............................................................................................................... 71


9.5 Xiaomi, Inc. ............................................................................................................................ 74

9.5.1 SWOT Analysis ............................................................................................................... 74


9.6 adidas Group ......................................................................................................................... 78

9.6.1 SWOT Analysis ............................................................................................................... 78


9.7 Sony Corporation .................................................................................................................. 82

9.7.1 SWOT Analysis ............................................................................................................... 82


9.8 Suunto Oy .............................................................................................................................. 86

9.8.1 SWOT Analysis ............................................................................................................... 86


9.9 Garmin International, Inc. ..................................................................................................... 90

9.9.1 SWOT Analysis ............................................................................................................... 90


9.10 Fitbit, Inc. .............................................................................................................................. 94

9.10.1 SWOT Analysis ............................................................................................................... 94


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9.11 Samsung Electronics Co., Ltd. ............................................................................................... 98

9.11.1 SWOT Analysis ............................................................................................................... 98

9.11.2 Recent Developments ................................................................................................. 100

10 SCALAR 360 DEGREE MARKET PERSPECTIVE .............................................................................. 101

11 APPENDIX .................................................................................................................................... 102

11.1 Acronyms ............................................................................................................................ 102

11.2 Related Reports ................................................................................................................... 103

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List of Tables

Table 1. Primary Data ..................................................................................................................... 11

Table 2. Primary Sources ................................................................................................................ 12

Table 3. Secondary Data ................................................................................................................. 12

Table 4. Advantages of Machine Learning-based Forecasts .......................................................... 13

Table 5. Years Considered .............................................................................................................. 14

Table 6. Global Wearable Technology Market – Executive Summary ............................................ 16

Table 7. The Rise of Connected Devices Over the Years ................................................................ 20

Table 8. Venture Capital Funding in the Wearable Technology Marketplace ................................ 26

Table 9. Patent/Patent Applications – Wearable Technology Market ........................................... 29

Table 10. Global Wearable Technology Market Size & Forecast (US$ billion), By Products (2013 –

2021) ........................................................................................................................................... 33

Table 11. Global Wearable Technology Market Size & Forecast (US$ billion), By Applications (2013

– 2021) ........................................................................................................................................... 40

Table 12. Global Wearable Technology Market Size & Forecast (US$ billion), By Regions (2013 –

2021) ........................................................................................................................................... 44

Table 13. North America Wearable Technology Market Size & Forecast (US$ billion), By Country

(2013 – 2021) ........................................................................................................................................ 45

Table 14. North America Wearable Technology Market Size & Forecast (US$ billion), By Products

(2013 – 2021) ........................................................................................................................................ 46

Table 15. North America Wearable Technology Market Size & Forecast (US$ billion), By

Applications (2013 – 2021) ................................................................................................................... 47

Table 16. Europe Wearable Technology Market Size & Forecast (US$ billion), By Country (2013 –

2021) ........................................................................................................................................... 48

Table 17. Europe Wearable Technology Market Size & Forecast (US$ billion), By Products (2013 –

2021) ........................................................................................................................................... 49

Table 18. Europe Wearable Technology Market Size & Forecast (US$ Billion), By Applications (2013

– 2021) ........................................................................................................................................... 50

Table 19. Asia-Pacific Wearable Technology Market Size & Forecast (US$ billion), By Country (2013

– 2021) ........................................................................................................................................... 51

Table 20. Asia-Pacific Wearable Technology Market Size & Forecast (US$ billion), By Products

(2013 – 2021) ........................................................................................................................................ 52

Table 21. Asia-Pacific Wearable Technology Market Size & Forecast (US$ billion), By Applications

(2013 – 2021) ........................................................................................................................................ 53

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Table 22. Middle East & Africa Wearable Technology Market Size & Forecast (US$ billion), By

Country (2013 – 2021) .......................................................................................................................... 54


Products (2013 – 2021) ......................................................................................................................... 55


Applications (2013 – 2021) ................................................................................................................... 56

Table 25. South America Wearable Technology Market Size & Forecast (US$ billion), By Country

(2013 – 2021) ........................................................................................................................................ 57

Table 26. South America Wearable Technology Market Size & Forecast (US$ billion), By Products

(2013 – 2021) ........................................................................................................................................ 58

Table 27. South America Wearable Technology Market Size & Forecast (US$ billion), By

Applications (2013 – 2021) ................................................................................................................... 59

Table 28. Google, Inc., SWOT Analysis.............................................................................................. 61

Table 29. Apple, Inc., SWOT Analysis ................................................................................................ 65

Table 30. Nike, Inc., SWOT Analysis .................................................................................................. 68

Table 31. Microsoft Corporation, SWOT Analysis ............................................................................. 71

Table 32. Xiaomi, Inc., SWOT Analysis .............................................................................................. 74

Table 33. adidas Group, SWOT Analysis ........................................................................................... 78

Table 34. Sony Corporation, SWOT Analysis .................................................................................... 82

Table 35. Suunto Oy, SWOT Analysis ................................................................................................ 86

Table 36. Garmin International, Inc., SWOT Analysis ....................................................................... 90

Table 37. Fitbit, Inc., SWOT Analysis ................................................................................................. 94

Table 38. Samsung Electronics Co., Ltd., SWOT Analysis.................................................................. 98

Table 39. List of Acronyms .............................................................................................................. 102

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List of Figures

Research Methodology ..................................................................................................... 13

Global Wearable Technology Market, By Products .......................................................... 15

Global Wearable Technology Market, By Applications .................................................... 15

Global Wearable Technology Market, By Regions ............................................................ 15

Global Mobile Devices & Connections Growth, 2015 ....................................................... 17

Global Mobile Devices & Connections Growth, 2020 ....................................................... 18

Smart v/s Non-smart Devices & Connections ................................................................... 20

Value Chain Analysis ......................................................................................................... 25

Patent/Patent Applications of the Companies in Wearable Technology Market ............. 31

Market Share Analysis of Key Players ........................................................................... 60

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1 MARKET OVERVIEW

The global wearable technology market is witnessing strong growth owing to rise in

the penetration of smartphone devices. Growing use of smartphones along with the

explosion of Internet of Things (IoT) is expected to drive the industry further. Also,

growing venture capital funding for numerous emerging players is also a contributing

factor for the augmentation of the market. Constant advancements in wearable

technology will boost the business opportunities in this market during the forecast

period. However, security concerns related to data confidentiality and insufficient

battery life of the wearable devices, hinder the market to an extent. Key players

highlighted in the wearable technology market report include Adidas Group, Apple Inc.,

Fitbit Inc., Garmin International Inc., Google Inc., Microsoft Corporation, Nike Ltd.,

Sony Corporation, Suunto Oy, and Xiaomi Inc. among others.

1.1 Research Methodology

We utilize a mix of primary research, secondary research, and machine learning

algorithms to generate comprehensive data about market sizes and revenue

forecasts. Our primary focus on continuous market tracking, rigorous fact-checking,

data-triangulation, and multiple layers of quality control ensures high-quality data that

can be leveraged for actionable research insights.

1.1.1 Primary Data

Table 1. Primary Data

Perspective Primary Research

Supply Side

Manufacturers

Wholesalers

Distributors

Demand Side End-users

Consumers

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Structured interviews with industry specialists, VPs, CEOs, directors, technology

consultants were taken in order to collect the key primary data. The primary data is

focused on both the demand and supply sides of the market. Market Engineering has

been carried out from the data and excessive analysis has been done on it. Primary

data is also extensively considered while validating the secondary data.

Table 2. Primary Sources

Report Parameters Primary Sources

Key Industry Participants (KPIs)

Suppliers

Government Agencies

Regulatory Bodies

Research & Development Companies

Investment Research Companies

Business Consulting Service Providers

Academic Institutions/Universities

Venture Capitalists

1.1.2 Secondary Data

Table 3. Secondary Data

Report Parameters Perspective Secondary Research

Market Size, Revenue,

Industry Analysis, Value

Chain Analysis,

Ecosystem Analysis,

Premium Industry

Trends, End-user

Analysis, Market

Segmentation,

Geographic Analysis, Key

Market Players,

Competitive Landscape

Supply Side

Company Annual Reports

SEC Filings

Financial Journals

Trade Journals

Market Journals

Press Releases

Directories

White Papers

Company Websites

Magazines

Demand Side Case Studies

Customer References

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The data from important secondary sources is utilized to obtain industry supply chains,

company profiles, and other key areas such as market drivers, opportunities, trends

from the market perspective. In addition, secondary data is gathered using paid

databases such as Bloomberg, Hoovers, Factiva, and government publishing sources.

1.1.3 Machine Learning

In addition to assigning weights to all the relevant market parameters, to quantify their

market impact for generating projected market growth rate, we use advanced machine

learning algorithms to collate essential market data. The machine learning method

utilizes algorithms such as regression, correlation, and decision tree, among others,

to derive the desired output.

Table 4. Advantages of Machine Learning-based Forecasts

Perspective Advantages of Machine Learning-based Forecasts

Using Machine Learning for

Data Forecast

Unlimited Data

Highly Detailed Forecasts

Profound Knowledge of Demand

Broad applicability

Customizable Model Identifies Drivers

Analysis - Product, Value Chain, Supply Chain,

Competitor

1.1.4 Research Scope

We have utilized the top-down, bottom-up approach to study the market size, industry

dynamics, key regional markets, and major market trends. The global market has been

estimated by integrating the regional markets, estimating the market data for the base

year 2015 and annual share and revenue forecasts to 2022 in US$.

Research Methodology

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1.1.5 Years Considered

Table 5. Years Considered

Market Specifics Report Scope

Historical Year 2014

Base Year 2015

Estimated Year 2016

Forecast Period 2016-2022

Revenue Currency US$

1.1.6 Currency & Pricing

The currency used in the report is the U.S. dollar, with market size indicated in US$

million and US$ billion.

Global

Market Size

Market-specific Revenues of Key Players

Total Revenues of Key Players

Global Market Size

Segment-specific Market Size

Regional

Market

Size

Bottom-up

Top-down

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Revenue is obtained from the annual company reports (For all the companies

reporting their revenue in US$)

Revenue is converted as per the annual currency exchange rate for that

particular year (For the companies reporting their revenue in currencies other

than US$)

1.1.7 Market Segmentation

Global Wearable Technology Market, By Products

Source: Scalar Market Research Analysis

Global Wearable Technology Market, By Applications


Global Wearable Technology Market, By Regions


Wearable Technology Market, By Products

Smart Clothing & Smart Glasses

Sleep Sensors

Smart Watches

Activity Monitors

AR Headsets

CGMs HRMsDrug

Delivery Devices

Hand Worn

Terminals

Wearable Patches

Jewelries

Wearable Technology Market, By Applications

InfotainmentFitness & Wellness

Healthcare & Medical

Industrial & Military

Safety & SecurityFashion & Lifestyle

Wearable Technology Market, By Regions

North America Europe Asia PacificMiddle East &

AfricaSouth America

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2 EXECUTIVE SUMMARY

2.1.1 Global Wearable Technology Market – Executive Summary

Table 6. Global Wearable Technology Market – Executive Summary

Global Wearable Technology Market Market Size (US$ billion) CAGR%

(2016 – 2021) 2015 2021

Total 25.92 71.23 18.9

Pro

du

cts

Largest Segment, by Revenue –

Smart Watches

Fastest Growing Segment – Hand

Worn Terminals

Ap

plic

atio

ns Largest Segment, by Revenue –

Healthcare & Medical

Fastest Growing Segment – Fashion

& Lifestyle

Re

gio

ns

Largest Segment, by Revenue –

North America

Fastest Growing Segment – Asia-

Pacific


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3 MARKET DYNAMICS

3.1 Drivers

3.1.1 Rising Penetration and Adoption of Smart Mobile Devices

The current growth in the wearable technology market is chiefly driven by the rising

level of penetration and adoption of mobile devices, tablets, smartphones, and devices

used for M2M communications, evolving business models and emerging software

ecosystems. Nearly all conventional wearable devices now are paired with

smartphones, which have become an integral part of our daily life. Wearable devices

such as smart watches synced with smartphones are helping end-users to check and

attend calls and messages without taking out the smartphones. Companies such as

Samsung, OnePlus, Xiaomi, and others nowadays are also launching smartphones

with complementary wearable devices which will provide end-users with enhanced

experiences. The growth in these categories will directly impact the adoption of

wearable technology products, as the end-users are expected to highly embrace

wearable products in coming years.

Global Mobile Devices & Connections Growth, 2015

Source: Cisco VNI Mobile, 2016

31.9%

8.0%

2.0%6.0%

49.9%

2.0% 0.2%

Global Mobile Devices & Connections Growth, 2015

Smartphones M2M Tablets

Phablets Nonsmartphones PC's

Other Portable Devices

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3.4 Future Outlook

3.4.1 Adoption across Enterprises

Wearable technology and solutions providers globally have shifted their focus to target

enterprises, wherein wearable devices such as smart glasses, wearable cameras,

location trackers, smart helmets, and hand own terminals possess a huge potential.

Wearable products can benefit manufacturing facilities and enterprises in numerous

ways to improve productivity and streamline processes. Currently, enterprises are

increasingly focusing on employer wellness programs and employee contribution and

productivity enhancement methods. Thus, this trend is analyzed to bolster mass

adoption of medical and fitness wearable devices and other associated technologies.

3.4.2 Wi-Fi Everywhere

The rapidly growing wearable technology market that encompasses smart glasses,

headsets, HRMs, medical aids, HMDs, smart clothing, and ingestible among others

has huge potential. A majority of these products rely on the connectivity of Bluetooth

technology. However, with the proliferation of IoT and advancement in digital

infrastructure across the globe, internet is expected to mark its presence almost

everywhere. Thus, with Wi-Fi and internet everywhere, all the wearable products can

be easily connected to smart devices seamlessly and on-the-go. Governments across

the world are aiming to build smart cities and also make airports, railway stations,

street, and other public places smart. Thus, the connected world is expected to provide

abundant opportunities for the growth of wearable technology market.

3.4.3 Create New Business Opportunities

The significant growth of wearable technology is expected to create new means for

marketing, including robust and smarter customer data collection, and enhanced

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4 INDUSTRY ANALYSIS

4.1 Value Chain Analysis

Value Chain Analysis


The value chain for wearable technology market captures all the stages of

manufacturing and supplying wearable technology products and solutions. Wearable

technology finds numerous applications in sectors such as fashion & lifestyle, safety

& security, industrial & military, healthcare & medical, fitness & wellness, and

infotainment. The raw materials required for the manufacturing of wearable devices

and other hardware components include IC’s, PCB’s, electronic adhesives, power

systems & batteries, textile materials, sensors, glasses, antennas, LED’s and other

electronic components, and materials. There are a number of existing raw material

suppliers and providers in the market (e.g. Alpha-Fit, Adhesives Research, etc.) that

supply raw materials to the wearable technology component manufacturers, and

integrators, who then develop the final product – ready to be delivered to the end-

users.

Raw Material Providers

Integrators / Platform Providers

Distribution & Retail

End-users

•ICs, PCBs, Electronic Adhesives, Power Systems & Batteries•Textile Materials, Sensors, LEDs and other electronic components

•Assemblers, Manufacturers & Designers•Development Platform Providers, Standardization and Test Organizations•OEMs and Integrators

•Physical Stores, International and National Retailers and Independent Retailers•Online Stores and Distribution Channels

•Fashion & Lifestyle•Safety & Security•Industrial & Military•Healthcare & Medical•Fitness & Wellness•Infotainment

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4.3 Patents/Patent Applications - Wearable Technology Market

The table below provides the number of patents/patent applications according to the

broad technologies involved, such as connectivity, processing, network infrastructure,

and also their applications in various industry segments:

Table 9. Patent/Patent Applications – Wearable Technology Market

Level 1 Level 2 Level 3 Patents/Patent

Applications

Connectivity

Specially adapted

services/devices 877

Switching Systems 744

Communication Protocols 639

EMW/Radio Waves 1,058

Access/Authentication 421

Connection Management 355

Resource Management 2,084

Topology Management 160

Multiplexing Methods 618

Traffic Management 142

Light Guides 223

Processing

Algorithm

Speech Processing 1,431

Character Recognition 834

Bioinformatics 1,073

Image Processing 669

Others 1,637

Encryption

Data Security 1,236

Error Correction 1,067

Data Encryption 566

Memory Management Information Retrieval 591

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5 WEARABLE TECHNOLOGY MARKET, BY PRODUCTS

5.1 Introduction

In the present time, wearable technology is attaining high acceptance among people

and the range of products offered has gone beyond from smartwatches and wrist-

bands eyewear to smart apparels, eyewear, and other health monitoring wearables.

5.1.1 Global Wearable Technology Market Size & Forecast (US$ billion), By

Products (2013 – 2021)

Table 10. Global Wearable Technology Market Size & Forecast (US$ billion), By

Products (2013 – 2021)

Products 2013 2014 2015 2016 2017 2018 2019 2020 2021

CAGR%

(2016 –

2021)

Smart Clothing

& Smart

Glasses

0.82

Sleep Sensors

Smartwatches

Activity

Monitors

AR Headsets

CGMs

HRMs

Drug Delivery

Devices

Hand Worn

Terminals

Jewelries

Total


The wearable product market is segmented by several product types into smart

clothing & smart glasses, augmented reality (AR) headsets, sleep sensors, heart rate

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monitors (HRMs), wearable patches, activity monitors, smartwatches, continuous

glucose monitors (CGMs), hand worn terminals, drug delivery devices, and jewelries.

These products are worn or attached to the human body and are divided according to

the body parts such as eyewear, body wear, finger or ring wear, footwear, neck wear,

and wrist wear among others.

5.2 Smart Clothing & Smart Glasses

Smart glasses also known as digital eye glasses are wearable computer devices which

enable to add information to what user sees through optical HMD or AR overlay, which

has the ability to reflect projected digital images and allow the wearer to see through

the device or see better with it. Google Glass is one of leaders for smart glasses,

whereas, there are many companies that are currently engaged in developing smart

glasses. Some of them are large enterprises and companies that manufacture their

own components, however, other small companies may require to outsource needs

and purchase the components and sensors from specialized manufacturers. The

wearable displays are not of the same size for everyone as the distance between both

the eyes of a person varies and the device is designed keeping in mind an average

separation distance which might act as a challenge in mass adoption of a product.

Smart clothing or e-textiles, smart fabrics, or smart textiles are the clothes that enable

electronic and digital components to be embedded into them. These fabrics have been

developed with innovative technology to deliver value to the wearer. These fabrics

come under two categories namely: performance enhancing and aesthetic.

Performance enhancing fabrics help in regulating body temperature, controlling music

vibration and to reduce wind resistance which results in improving athletic

performance making huge impact on extreme sports, defense, and athletic. Aesthetic,

on the other hand, are those fabrics which can change color and collect energy from

the environment by sound or heat, harnessing vibrations, reacting to this input. Other

fabrics include clothes designed to safeguard against environmental hazards such as

radiations. The beauty and health industry is also taking benefits by these innovations

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6 WEARABLE TECHNOLOGY MARKET, BY APPLICATIONS

6.1 Introduction

The uses and implication of wearable technology have an extensive influence and

impact in the fields of fitness, aging, medical care, disabilities, transportation,

education, enterprise, gaming, music, and finance. The main motive of wearable

technologies across all these fields is to efficiently integrate functional, portable

computers and electronics into daily lives of individuals. Before entering in the

consumer market, these devices were mainly used in the military technology and had

the major inferences for medicine and healthcare. The application segment of global

wearable technology market includes infotainment, healthcare & medicine, industrial

& military, fashion & lifestyle, fitness & wellness, and safety & security.


Applications (2013 – 2021)


Applications (2013 – 2021)

Applications 2013 2014 2015 2016 2017 2018 2019 2020 2021

CAGR%

(2016 –

2021)

Infotainment 13.98

Fitness &

Wellness

Healthcare &

Medical

Industrial &

Military

Safety &

Security

Fashion &

Lifestyle

Total


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7 WEARABLE TECHNOLOGY MARKET, BY GEOGRAPHY

7.1 Introduction

The wearable technology market is geographically segment into five major regions

namely, North America, Middle East and America, Asia-Pacific, Europe, and South

America. Currently, North America is leading the market and Europe, APAC, and

Middle East are expected to grow at a high rate in wearable technology market. For

the years 2015 & 2025, the breakdowns of wearable technology market based on

regions are shown in the figures below.


Regions (2013 – 2021)


Regions (2013 – 2021)

Regions 2013 2014 2015 2016 2017 2018 2019 2020 2021

CAGR%

(2016 –

2021)

North America 17.1

Europe

Asia-Pacific

MEA

SAM

Total 22.68 71.23 18.9


7.2 North America

The global wearable market is dominated by North America that holds the largest

market share in terms of revenue. The market is propelled by the growing awareness

of fitness and health, where wearable devices play an important role. The decreasing

price of the wearable devices due to competition and advancement in technology are

making the wearable devices economical. Further, escalating demand for several

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application sectors such as wearable technology for healthcare, security and fitness

is boosting the demand for wearable devices in North America.

The growing market of smartphones and tablets is allowing the integration of

smartphones with wearable devices. Wrist wear segment of wearable technology

captures a major chunk of the market and is projected to lead the market during the

predicted period. The inception of smartwatches by companies such as Apple, Nike,

and Samsung among others has contributed to the growth of the market. North

America has deep penetration for wearable devices due to early adoption of innovative

technology. The passion to keep up a healthy lifestyle in the U.S. and Canada is the

main reason for the region’s dominance. Also, continuous advancement in

technologies, high purchasing power, and disposable income in this region is

contributing to the development of North America wearable technology market.

7.2.1 North America Wearable Technology Market Size & Forecast (US$ billion),

By Country (2013 – 2021)

Table 13. North America Wearable Technology Market Size & Forecast (US$ billion),

By Country (2013 – 2021)

Country 2013 2014 2015 2016 2017 2018 2019 2020 2021

CAGR%

(2016 –

2021)

U.S.

Rest of North

America

Total


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7.2.2 North America Wearable Technology Market Size & Forecast (US$ billion),

By Products (2013 – 2021)

Table 14. North America Wearable Technology Market Size & Forecast (US$ billion),

By Products (2013 – 2021)

Products 2013 2014 2015 2016 2017 2018 2019 2020 2021

CAGR%

(2016 –

2021)

Smart Clothing

&

Smartglasses

Sleep Sensors

Smartwatches

Activity

Monitors

AR Headsets

CGMs

HRMs

Drug Delivery

Devices

Hand Worn

Terminals

Wearable

Patches

Jewelries

Total 17.1


SAM

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8 COMPETITIVE LANDSCAPE

8.1 Market Share Analysis of Key Players

The pie-chart below represents the company market share analysis of key players

operating in the global wearable technology market for the year 2015:

Market Share Analysis of Key Players


27.3%

16.7%

13.5%

4.5%

4.1%

33.9%

2015

Fitbit Inc. Xiaomi Inc. Apple Inc. Garmin Ltd. Samsung Electronics Co., Ltd Others

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9 COMPANY PROFILES

9.1 Google, Inc.

9.1.1 SWOT Analysis

Table 28. Google, Inc., SWOT Analysis

Strengths Weaknesses

• High investments in R&D

• Strong relationship with industry-

leading partner companies

• High dependency on single revenue

stream

Opportunities Threats

• Collaborations and joint ventures • Highly competitive market

• Fluctuating global economy

Source: Company Annual Reports, Scalar Market Research Analysis

Strengths

High investments in R&D

Google, Inc. makes continuous investments in their existing services and products as

well as in new innovations. Company release early-stage products to see if it’s feasible

to invest on it by taking customers' feedback. Majority of their research expenses are

on technical and engineering staff who are responsible for carrying out R&D activities.

Google, Inc. has secured many patents such as pay per gaze (that enables real world

advertisements to be transformed into digital behavior), computerized eyewear,

autonomous delivery truck etc. Google has also announced its R&D collaboration with

Calico, a research firm with the intention to benefit both the companies develop,

discover and bring to market new remedies for age-related diseases.

Strong relationship with industry-leading partner companies

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Google, Inc. has partnered with various leading companies to make their products

consumer friendly. Google partnered with Luxottica, an eyewear company; various

electronics manufacturers such as HTC, Samsung, Motorola, Asus and LG. Also,

Google, Inc. partnered with Fossil Group, Inc. and Michael Kors for development of

smartwatches. Apart from these, the company is partnered with Mediatek, Intel,

Broadcom, Qualcomm, Imagination, and many others. Google collaborated with these

partners to launch watches powered by Android Wear. Furthermore, Google partnered

with Levi Strauss & Co. to bring wearable technology in clothing.

Weaknesses

High dependency on single revenue stream

Google Inc. depends mainly on advertisements for revenue generation, as it

Generates 1/3rd of revenue from advertisements. Although the revenue is increasing

every year but company should also focus on other streams to diversify its sources of

income. This will help the company to remain stable even if there is some downfall in

one source.

Opportunities

Collaborations and joint ventures

Since Google, Inc. has partnered with various companies and has been collaboratively

working towards launching wearable products. High collaborations with renowned

companies gives Google, Inc. a benefit to get into partnership with other companies

looking or willing to launch their products based on wearable technology in the market.

Moreover, tie-up with companies provides wider market with flexible customer base.

Threats

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Highly competitive market

The market for wearable technology is at its growing stage and there are several key

players competing in the market. Most of the revenue generated is divided among the

hardware and app developers. The technology providers keep comparatively low

revenue share and major share of revenue earned is invested in R&D and innovation.

Fluctuating global economy

The company has its business expanded over regions such as North America, Europe,

APAC, MEA, and SAM. Number of factors affects the stock price of the company

includes credit market conditions, consumer credit availability, government policies,

spending levels, and global production rate. Additionally, the fluctuations in currencies

and political environment differs from region to region.

9.1.2 Recent Developments

• In March, 2016, Michael Kors, a luxury lifestyle goods providers collaborated

with Google to launch itself into the wearable technology market. Michael Kors

launched Michael Kors Access smart watch, which will provide users smart

watch with innovative design and glamorous styles

• In December, 2015, Google, Inc. filed a patent application for a needleless

wearable device to check diabetics’ blood sugar levels. Addition to checking

blood sugar level, the device might also be used for checking hormone levels,

enzymes, and proteins.

• In June, 2015, Google, Inc. designed a health-tracking wristband which can be

used in drug tests and clinical trials, providing the physicians every minute

report of the patient. Google offers its health-monitoring smart watch features

in its Android Wear software platform, through partners like LG Electronics Inc.

• In May, 2015, Google partnered with Levi Strauss & Co., a clothing company,

with an aim to make clothes integrated with wearable technology input devices

and named it as project ‘Jacquard’. Project Jacquard will offer developers and

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designers to develop connected, touch-sensitive textiles into their individual

products.

• In June, 2014, Google announced an introduction of new product named as

Google Cardboard. It will offer the users to experience mobile virtual reality with

low-cost designed to work with iOS and android devices.

• In March, 2014, Google announced partnership with Luxottica, an Italian

eyewear company. They partnered with an intention to develop Google Glass

wearable headsets into consumer friendly and stylish products.

• In March, 2014, Google announced Android wear, a project that develops the

company’s mobile operating system to wearable. To launch watches driven by

android wear, Google partnered with various chip makers, consumer

electronics manufacturers, and fashion brands.

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11 APPENDIX

11.1 Acronyms

Table 39. List of Acronyms

Acronym Expansion

BYOD Bring Your Own Device

CAGR Compounded Annual Growth Rate

FIFA The Fédération Internationale de Football Association

GPS Global Positioning System

HP Hewlett-Packard

HRM Heart Rate Monitor

IC Integrated Circuit

IHA The Intelligent Health Association

IMIA The International Medical Informatics Association

IoT Internet of Things

LED Light Emitting Diode

M2M Machine to Machine

MMS Multimedia Messaging Service

NBA The National Basketball Association

NFC Near field communication

OEM Original Equipment Manufacturer

OS Operating Systems

PCB Printed Circuit Board

PC Personal Computers

P.E. Physical Education

POS Point of Sale

PTT Push to Talk

R&D Research and Development

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SAM South America

UAE United Arab Emirates

U.K United Kingdom

VR Virtual Reality

WearRA The Wearable Robotics Association

Wi-Fi Wireless Fidelity


11.2 Related Reports

Virtual Reality Market, by Technology (Non-Immersive, Semi-Immersive, Fully-

Immersive), Product (Hardware, Software), Application (Gaming, Healthcare,

Aerospace & Defense, Entertainment & Others) – Global Revenue, Trends,

Growth, Share, Size and Forecast to 2022

Smart Clothing Market, by Intelligence System (Passive Smart, Active Smart),

By Application (Personal, Healthcare, and Enterprise) – Global Revenue,

Trends, Growth, Share, Size and Forecast to 2022

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Wearable technology market forecast to 2022 by scalar market research

Business

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