Analysts at IHS say the global market for batteries used in wearable electronics will increase more than tenfold in just four short years, propelled by new devices suitable for active sports and fitness lifestyles. Indeed, worldwide revenue for wearable electronics batteries is projected to reach $77 million by 2018, up considerably from a mere $6 million by year-end in 2014.
In addition, industry revenue will have grown nearly 120 percent from 2014 levels.
“Wearable electronics will be the key to sustaining the current very-high-growth levels of battery revenue in consumer electronics,” explained Thomas McAlpine, power supply and storage component analyst for IHS.
“The tremendous expansion in store will come thanks to an increase in the shipments of smartwatch products, wearable health monitoring devices and smart glasses—products geared toward an active lifestyle combining advanced technological trends in miniature computing with newly smart consumer imperatives in fitness and fashion.”
In addition, annual shipments for wearable electronic devices will reach an estimated 56 million units by 2018, fueling continued demand for the batteries that power these products.
“Of the total number of batteries expected to be installed in wearable electronics by 2018, lithium polymer batteries will take the predominant share, accounting for 73 percent of total wearable electronics battery revenue,” said McAlpine. ”Lithium polymer batteries are typically the preferred choice as they are lighter in weight and can be manufactured into a wider range of shapes and sizes, compared to traditional lithium-ion batteries.”
Smartphone and tablet PC demand will continue to drive the majority of revenue growth in the lithium battery market for portable electronics over the next couple of years, with the combined shipments of these devices projected to grow 46 percent from 2013 to 2015. However, shipments will decrease from 2015 onward, and coupled with projected erosion in the average selling prices of lithium battery cells, growth will decelerate for the overall lithium battery market for portable consumer electronics.
“This means the emergence of new applications in the market is critical. Lithium batteries will remain an integral component for innovation in consumer electronics,” McAlpine added. “To achieve sustained market growth, new wearable electronics and other devices need to be introduced and adopted by the mass market, similar to what is occurring now in recently emerging product categories.”
As we’ve previously discussed on Bits & Pieces, Atmel is right in the middle of the wearable tech revolution, with the the soft electronics DIY Maker community adapting various Atmel-powered platforms specifically for wearables, including the Arduino Lilypad (ATmega328V) (developed by MIT Media Lab professor Leah Buechley), along with Adafruit’s very own Gemma (Atmel ATtiny85) and Flora (ATmega32u4), the latter of which can be easily daisy chained with various sensors for GPS, motion and light.
Interested in learning more about wearables? You can check out our extensive article archive on the subject here.