According to Juniper Research, more than 100 million smartwatches will be in use worldwide by 2019. The report reveals that over the next 12-18 months, a number of premium brand launches will help bring the category into mainstream consumer consciousness.
The report, entitled “ Smartwatches: Market Dynamics, Vendor Strategies & Scenario Forecasts 2014-2019,” highlights that differentiation is now shifting from merely hardware to other connectivity features, such as GPS and near field communication (NFC) technologies.
Juniper Research also claims that the range of functionality available means that it is unlikely that a ‘killer app’ for smartwatches would evolve, using Fitbit as an example, which grew to dominance in the fitness space with a varying device form factor.
“Given the greater scope for development in smart watches, the industry should not expect a single capability to make or break the category,” the report argues.
Additionally, if international vendors like Google, Apple, Sony and LG roll out high-end products, the demand for notification-based watches will diminish, even in markets where budget pricing is the biggest purchase driver. What this means is that smaller players will need to respond to increasing consumer expectations or lose further market share.
Juniper goes on to note that high functionality and premium branding means that the average smartwatch price will remain north of $200 over the next five years, while smartwatches will slowly gain more sales outlets as brands outside of the tech sector enter the space.
As wearable developers continue to push the boundaries of performance and power, Atmel’s underlying design technology will make it easier to use, secure and afford.
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