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Apple Watch helps to Grow Demand for all SmartWatches [MarketWatch.com]

By |December 5th, 2014|Apple, Charts & Graphs, Consumer Wearables, Market Data, Outside Sources*, REPORTS & ANALYSIS, Sample Reports|

SAN FRANCISCO (MarketWatch) – For a product that so far has no price tag, no confirmed release date and is still awaiting federal authorization before it can go on sale, the Apple Watch is already considered by many to be redefining the nascent smartwatch market.

Apple Watch is already considered by many to be redefining the nascent Smartwatch market.

And Apple’s AAPL, -0.38% decision to get into the smartwatch sector is enough to make consumers consider buying a smartwatch of any kind, according to research from UBS analyst Steven Milunovich.

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On Monday, Milunovich said that a UBS study based on 4,000 respondents showed that 10% of those surveyed said they were “very likely” to buy a smartwatch over the next 12 months. Milunovich also said that about two-thirds of those who said they were likely to buy a smartwatch would be making the purchase in addition to, rather than in place of, a traditional watch.

The worldwide smartwatch market is relatively small, and generated $700 million on sales of just 3.1 million such timepieces in 2013, according to Milunovich, who included FitBands with displays as part of the sales figures.

The top-selling smartwatch last year was the Galaxy Gear from Samsung, with 800,000 units sold and a 34% market share.

Milunovich reiterated that he estimates Apple will sell 24 million Apple Watches during the first nine months that the devices are on sale, a figure that is based on the possibility that 10% of current iPhone owners will buy one of the new gadgets. Apple Watch owners will also need an iPhone 5 or later phone in order to access all of the Apple Watch’s capabilities.

“Apple can’t afford to have a poor consumer experience with version one of any product,” Milunovich said. “The question is whether the first version will be sufficient to create substantial [consumer] demand.”

Milunovich, who has a buy rating and $125-a-share price target on Apple’s stock, estimates that the average selling price of the Apple Watch will be about $420 per device, and that Apple could grow sales of the Apple Watch to almost 68 million units by 2018.

Apple shares were off by almost 3% at $115.38 in late trading Monday.

Wearable Device Market Growth to be Bumpy as Value Proposition is Established, [NPD DisplaySearch]

By |December 1st, 2014|Market Data, Outside Sources*, Sample Reports|

Outlook for wearables varies depending on relative value of fashion, function, health and other benefits

—The market for wearable devices, like activity trackers, notifier bands, smart watches, and head-mounted displays, first took off in 2013, and momentum could drive the market as high as 48 million units this year and 91 million in 2015. However, according to the NPD DisplaySearch Wearable Device Market and Forecast Report, the market is expected to experience a slow down after 2015, as consumers rebound from the initial hype.

“We expect that the dynamics of the wearables market will be similar to DVD, LCD TV, smartphones, and other digital consumer markets with commoditized hardware,” according to Paul Gray, director of European TV research for NPD DisplaySearch. “The arrival of Samsung, LGE, and other large, cost-efficient manufacturers to the wearables market would bring prices and margins down.”

Figure: NPD DisplaySearch Forecast Scenario (Total Shipments in Thousands)

Source: NPD DisplaySearch Wearable Device Market and Forecast Report

Given the significant uncertainties in consumer adoption, retention, and product development, NPD DisplaySearch developed three scenarios for the market forecast: Forward into the Past, Incidental to Essential, and Persuasive and Pervasive. The expected slowdown and subsequent return to stronger growth is evident in all three scenarios.

The Forward into the Past Scenario

In the first forecast scenario, Forward into the Past, wealthy early adopters are the first owners, and these high-status individuals reinforce the desirability of wearable devices. Market adoption eventually trickles down to less tech-enabled consumers as prices drop, but as fashion fades, the market shrinks dramatically before becoming established. Over time, continued price erosion leads to market expansion.

In this scenario, China is expected to dominate demand due to its huge market and strong smartphone uptake. However, a strong fashion effect would cause a surge and then backlash in China in 2017. North America and Europe would experience a slower decline than China in 2017. “Chinese shipments would then accelerate later in 2017, as unbranded and local suppliers gain share by selling wearable devices at low prices,” Gray said.

The Incidental to Essential Scenario

In the second forecast scenario, Incidental to Essential, what starts out as a casual purchase becomes essential due to the intrinsic usefulness of wearable devices. Like Apple’s iTunes, consumers become locked-in and loyal to combinations of devices and services.

In this scenario, China again dominates demand for the same reasons. However, in this scenario a more limited fashion effect causes a surge and then decline in China in 2016.The decline is limited in North America and Europe by the dominance of a few brands that can maintain sales through bundling strategies. China accelerates in the later part of the forecast, as unbranded and local suppliers gain share. Strong branded offerings cause a market surge in all regions, especially North America, where adoption is locked in. “Driven by an early shrinkage in 2016, consolidation is rapid, allowing a small number of brands to strengthen their positions,” Gray noted.

The Persuasive and Pervasive Scenario

The Persuasive and Pervasive forecast scenario reveals a more positive shipment outcome than the Incidental to Essential scenario in that the health benefits of wearable devices become significant, while body sensing becomes a critical part of everyday life, triggering medical intervention, providing security and identification, and even daily living assistance. Private and public healthcare providers recommend wearable technologies to their patients.

While China again dominates demand in the longer term, it would be relatively slow to grow. In this scenario the fashion effect would again be minimal, as the primary driver in the market is healthcare applications. The market is forecast to plateau in 2016 but does not decline overall. North America is the earliest adopter of wearables, reinforced by social networking. Chinese market growth would accelerate again in 2017, as local suppliers gain share at lower prices. “Increased concern about healthy living in China and similar concerns in Europe could lead healthcare providers to recommend activity-tracker devices to their patients,” Gray said.

About The NPD Group, Inc.
The NPD Group provides global information and advisory services to drive better business decisions. By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth. Practice areas include automotive, beauty, consumer electronics, entertainment, fashion, food/foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games. For more information, visit npd.comand npdgroupblog.com. Follow us on Twitter at @npdtech and@npdgroup.

DIY Devices Becoming Cool as Over 5 Million Additional Households Adopt Smart Home Systems in 2014

By |December 1st, 2014|Market Data, News, Sample Reports|

Spending on smart home systems and services in the US will hit $18 billion in 2014 and more than double to $39 billion by 2019 according to Strategy Analytics’Smart Home Strategies latest forecast.  Apple, Google and Samsung are among the big consumer brands posturing for position in the market as ADT, Vivint, Comcast and AT&T drive growth in the interactive security market. The competitive dynamics shaping the market are described in “Handicapping the US Smart Home Horserace”.

Click here for a copy of the report: http://sa-link.cc/C7

Key findings from the report:

Security service providers will drive revenue growth in the US market as ADT and Vivint run neck and neck in front with each having more than 800,000 residential subscribers and FrontPoint, the online reseller Alarm.com’s platform, not far behind.

Comcast’s Xfinity Home is likely to catch up with the frontrunners in 2014 with AT&T’s Digital Life also in the chaseLowe’s Iris self-monitoring and control system currently has a big lead on Home Depot for the DIY customer, but Staples, Amazon and Smartlabs, with Microsoft now selling INSTEON devices in its stores, will intensify the battle for DIYers.

Apple’s HomeKit caused a stir when introduced in June,  It has perked up iOS devotees to smart home applications, but it remains a dark horse in the race.

Google’s Nest acquiring Dropcam adds another cool product to their portfolio and another point of “learning” about what goes on in homes for future Google/Nest applications.

Quote by Bill Ablondi, Director, Smart Home Strategies said:
“Interactive security will take the revenue lead from professionally installed home
control and entertainment systems in the overall US smart home market and Nest’s acquisition
of Dropcam signals Google’s desire to become a disruptive force in this market.”

The Wearables Report: Growth Trends, Consumer Attitudes, and Why Smartwatches Will Thrive (sample)

By |December 1st, 2014|Consumer Wearables, Forecasts (In-Depth), Market Data, REPORTS & ANALYSIS, RESEARCH & DEVELOPMENT|

Wearables face unique obstacles that will lead them to have less of an immediate market impact compared with tablets and smartphones. For now, most of the devices need to connect with a smartphone or tablet for most of their functionality. 

 

Wearables also suffer from a perception problem.


Consumers still don’t understand how a wearable might really benefit them. In a recent report on the wearable computing market from BI Intelligence, we also discuss other barriers to adoption, including price, lack of functionality, and style.

Wearables Scrutinized Over The Long Term


We also look at how how the wearables market will perform in the long run.  We forecast out shipments numbers, explain why the smartwatch will be the leading wearable device category going forward, and analyze proprietary results from our BI Intelligence consumer survey on smartwatch purchase intent.

Access The Full Report And Data by Signing Up For A Trial Today >>

Here are some key points from the report:


Wearables will see plenty of growth.

We estimate the global wearables market will grow at a compound annual rate of 35% over the next five years,
reaching 148 million units shipped annually in 2019, up from 33 million units shipped this year. 

The smartwatch will be the leading product category and take an increasingly large share of wearable shipments

We estimate smartwatch shipments will rise by a compound annual rate of 41% over the next five years.
Smartwatches will account for 59% of total wearable device shipments this year, and that share will expand to just over 70% of shipments by 2019

The Apple Watch will kick-start growth in the overall smartwatch market.

The Apple Watch will account for 40% of smartwatch shipments in 2015 and reach a peak 48% share in 2017.

Fitness bands and miscellaneous wearable device types, like smart eyewear, will continue to cater to niche audiences.

Fitness bands, because of their appeal to niche audiences interested in health and exercise, will see their share of the wearable device market contract
to a 20% share in 2019, down from 36% this year. There will be some blur between fitness bands and smartwatches.

Now that both Apple and Google are in the smartwatch market, they will dominate, much as they have in the smartphone and tablet markets.

Because these platforms make up over 90% of the entire mobile platform market, many mobile users interested in wearable devices
will gravitate toward Apple Watches and Android Wear-based devices.


 

Smartwatches in particular must become standalone computing devices with more robust functionality.
Barriers still persist, and these will inhibit consumer wearables adoption and usage for the devices to become mainstream. Other barriers include small screen size, clunky style, limited battery life, and lack of a “killer app” that can drive adoption.

In full, the report:

  1. Forecasts annual shipments of wearable computing devices between 2014 and 2019.
  2. Breaks down wearable computing device shipments by device category, including smartwatches, fitness bands, and other wearables like Google Glass.
  3. Reveals and analyzes BI Intelligence smartwatch consumer survey results.
  4. Discusses barriers to mainstream adoption including style limited functionality, and lack of a killer app ecosystem.
  5. Looks at the potential for Apple and Google to dominate with Apple Watch and Android Wear.

For full access to all BI Intelligence’s charts, data, and analysis on the mobile and Internet of Things industry, sign up for a two-week trial.

Business Insider…Continue Reading…

Processing, Sensing, Communications Semiconductor device portion of the IoT = Set for Rapid Growth

By |November 12th, 2014|Charts & Graphs, Forecasts (In-Depth), Market Data, Outside Sources*, REPORTS & ANALYSIS, RESEARCH & DEVELOPMENT|

Gartner Says the Processing, Sensing and Communications Semiconductor Device Portion of the IoT Is Set for Rapid Growth

Automotive, LED Lighting and Home Consumer Segments to Drive a Huge Portion of Overall Semiconductor Growth Through 2020

The processing, sensing and communications semiconductor device portion of the Internet of Things (IoT) will be a rapidly growing segment of the total semiconductor market, growing 36.2 percent in 2015, compared with the overall semiconductor market growth of 5.7 percent, according to Gartner, Inc. Processing will be the largest revenue contributor to the IoT “things” semiconductor device forecast, at $7.58 billion in 2015, while sensors will see the strongest growth, with 47.5 percent growth in 2015.

The processing semiconductor device segment consists of microcontrollers and embedded processors, while the sensing semiconductor segment includes optical and nonoptical sensors.

“The demand for billions of things will ripple throughout the entire value chain, from software and services to semiconductor devices,” said Alfonso Velosa, research director at Gartner. “These ‘things’ will drive huge demand for individual chips. IoT semiconductor growth will come from industries spanning consumer, industrial, medical, automotive and others.” (see Figure 1)

Figure 1. IoT Semiconductor Revenue by Electronic Equipment (Millions of Dollars)

Source: Gartner (October 2014)

Gartner’s forecast for the top 15 things, based on semiconductor revenue, highlights some very interesting trends:

  • The automotive industry plays a huge role in the semiconductor demand from things through the end of the decade, with six segments in the top 15. Regulations for safety and a need for convenience and more autonomous vehicles are driving tremendous demand for new semiconductor devices silicon in the car. One example of how the IoT will transform an automobile is the use of predictive maintenance. Using small sensors throughout the engine, predictive maintenance allows for a better experience for the consumer while enabling tremendous cost savings for both the consumer and the automotive dealer.
  • LED lighting will be a huge volume play, both in lowering costs and enabling new services through its capability to connect, network and sense the environment.
  • Consumers looking to enhance their lifestyles will also play a central role in growing IoT demand, which in turn will create more demand for semiconductors. The smart TV and set-top box (STB) revenue will continue to grow, due to the increased need for processing and relatively expensive bill of materials (BOM) compared with a traditional embedded “thing”.
  • Smart glasses and smartwatches also benefit from a larger BOM cost and will be in more demand as wearables become a bigger part of every consumer’s life. Energy savings has always been a real value-add for the IoT.

“Gartner forecasts almost 30 percent growth through 2020 for IoT semiconductor revenue,” said Dean Freeman, research vice president at Gartner. “This revenue spans every conceivable industry and is driven by the immense scale of low-cost devices. Some in the industry believe this growth will transform the semiconductor industry. However, further investigation shows that the majority of IoT devices are commodity offerings. The truth is that inexpensive devices are one of the biggest enablers of IoT.”

More detailed analysis is available in the report “Forecast Analysis: IoT Endpoints — Sensing, Processing and Communications Semiconductors, Worldwide, 2014 Update.” The report is available on Gartner’s website at http://www.gartner.com/document/2884217.

Analysts will unveil the new Gartner IoT forecast at the Gartner Symposium/ITxpo 2014, November 9-13 in Barcelona, Spain. For more information about the conference please visit www.gartnerevent.com/eu/sym. Press can register by contacting Laurence Goasduff at laurence.goasduff@gartner.com.

Gartner Says By 2017, 50 Percent of Internet of Things Solutions Will Originate in Startups That Are Less Than Three Years Old

By |November 12th, 2014|Forecasts (In-Depth), Market Data, Outside Sources*, REPORTS & ANALYSIS, RESEARCH & DEVELOPMENT, StartUps|

Analysts Explore Major Business and Technology Trends at Gartner Symposium/ITxpo 2014 in Orlando

Gartner’s Maverick Research Sparks New, Unconventional Insights

Makers and startups, not tech providers, consumer goods companies or enterprises, will drive acceptance, use and growth in the Internet of Things (IoT) through the creation of a multitude of niche applications, according to Gartner, Inc. Gartner predicts that by 2017, 50 percent of IoT solutions (typically a product combined with a service) will originate in startups that are less than three years old.

Gartner defines “makers” as inventors, tinkerers and entrepreneurs who create and manufacture products using traditional tools and new digital design and rapid prototyping and manufacturing technologies. “Startups” are fledgling businesses that are often technology-focused and have the potential for high growth.

“Conventional wisdom is that the growth of the Internet of Things is driven by large enterprises. As is always the case, there is an element of truth in conventional wisdom and major consumer goods companies, utilities, manufacturers and other large enterprises are, indeed, developing IoT product offerings,” said Pete Basiliere, research vice president at Gartner. “However Gartner’s Maverick research finds that it is the makers and the startups who are the ones shaping the IoT. Individuals and small companies that span the globe are developing IoT solutions to real-world, often niche problems. They are taking advantage of low-cost electronics, traditional manufacturing and 3D printing tools, and open- and closed-source hardware and software to create IoT devices that improve processes and lives.”

Gartner analysts unveiled these findings at the sold out Gartner Symposium/ITxpo, which is taking place here through today.

Gartner’s Maverick research is designed to spark new, unconventional insights. Maverick research is unconstrained by Gartner’s typical broad consensus-formation process to deliver breakthrough, innovative and disruptive ideas from the company’s research incubator to help organizations get ahead of the mainstream and take advantage of trends and insights that could impact IT strategy and the wider organization.

“Managers often assume the IoT is about business-to-business and business-to-consumer opportunities, relying on technologists within their enterprises to develop the necessary systems and connected items. However, these firms are slow-moving elephants that cannot react quickly to what is happening underneath their feet,” said Mr. Basiliere. “Product development processes within most large enterprises are too ponderous and ROI-driven to produce anything but high-volume, lowest-common-denominator IoT objects. The result is the development of a low number of IoT uses that garner high amounts of revenue, while makers, startups and crowdsourcing efforts result in high numbers of low-revenue niche IoT applications.”

For this reason, senior management and emerging technology strategists within large enterprises must transform their product discovery processes. Whether at consumer goods companies or in the healthcare, utilities, wireless, manufacturing or other vertical markets, managers must encourage makers within their organizations to develop IoT concepts. They must closely examine the output from these makers and check the feasibility of transferring the underlying ideas into their own organizations.

“Innovation is necessary for an organization to sustain value over time and create competitive advantage. Yet in many organizations, the corporate culture and processes stagnate and harden, discouraging innovation as a result,” said Mr. Basiliere. “In the meantime, makers and startups worldwide are charging ahead with identifying numerous, often niche problems and innovating solutions using IoT concepts. They will drive not only consumer and enterprise acceptance of the IoT, but also the creative solutions that enterprises could not possibly discern, resulting in an “Internet of Very Different Things.”

Mr. Basiliere cited the example of entrepreneurs and individuals who are leveraging the low-cost Arduino open-source electronics platform, entry-level 3D printers, and traditional woodworking and machine tools to build their own IoT devices. Gartner has found that these grassroots projects focus on managing and controlling devices in the home and are more focused on providing convenience (such as turning on the heat before you arrive home) than cost savings (the focus of enterprise-sector and public-sector IoT).

Similar to other technology advances historically, the growth promise associated with the early stages of IoT will lead to the creation and funding of a large number of startup organizations that will maneuver to capture what they perceive to be early opportunities or overlooked product niches. This will lead to creative solutions and a wide range of products, many of which will fail in the market. Nevertheless, the process will lead to growth as the successful solutions are often consolidated by larger suppliers, and the overall market expands. As a result, makers enable people in underserved and niche markets worldwide — people who would not otherwise encounter the IoT offerings of large enterprises — to experience and benefit from connected device.

“It won’t all be smooth sailing. Certainly there is no small number of factors working against makers and startups, whether they have an IoT offering or a more traditional product or service,” said Mr. Basiliere. “Most small businesses fail within five years, and many of the ‘successful’ ones will be lifestyle companies that barely generate enough revenue to support an individual or family.”

About Gartner

Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company. We deliver the technology-related insight necessary for our clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, we are the valuable partner to clients in over 9,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 6,400 associates, including more than 1,480 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com.

Smartwatches “a niche opportunity at best"

By |November 11th, 2014|Forecasts (In-Depth), Market Data, News, REPORTS & ANALYSIS, Smart Watches, SMARTWATCHES, Statistics & Chartables|

Smartwatches are “a niche opportunity at best” and face an uphill struggle to interest the general public – though Apple could change that if it enters the market, a new study has found.

A report by US-based Jackdaw Research surveyed 2,200 US and UK consumers, concluding that there is limited consumer interest in “push” notifications – the main function offered by smartwatches such as the Pebble and Android Wear devices like Samsung’s Gear Live offer.

The survey points to continuing problems with the wearables market, where products such as Google Glass have so far failed to ignite consumer interest, and devices such as fitness trackers show high rates of abandonment.

Smartwatches’ key capability is to notify the wearer on their wrist of information from apps on their phone, via a Bluetooth connection. They can vibrate or display a message on the screen. Users can typically dismiss the alert with a swipe, or in some devices dictate a response via voice dictation.

But Jan Dawson, chief analyst at Jackdaw, says that the appeal of smartwatches rests on how many notifications people are interested in receiving, and whether they can or want to respond to them.

That, the survey found, is very limited.

Carried out online and adjusted for demographic profiles, the survey found that most people only choose to get one or two groups of notifications, such as text messages and emails, on the screen of their phone when it is locked.

Overall, 24% were set up with no notifications at all, 33% from just one app, 15% from two, and 28% from more than two.

Seen in the broader context of the US, where the survey reckons only 50% of adults have a smartphone, that means that only 22% of the overall population use notifications from two or more apps – suggesting a limited market for smartwatches based around push notifications at the outset.

Most people don’t use push notifications on their phone
Most people don’t use ‘push’ notifications on their phone screen – suggesting that smartwatches, which are based on pushing information, will struggle

——

Photograph: /PR/Jackdaw Research

“We believe that a notification-centric smartwatch experience is only likely to be attractive to people who actively use push notifications for more than two apps,” notes Dawson. “Otherwise, the main function of the watch will remain dormant for much of the day.”

But because typical notifications – text messages and emails – need the user to respond, “the current crop of smartwatches, which don’t provide good response capabilities to such messages, are not a good fit for those [functions] either.”

Poor battery life and response functions
He notes that some people who don’t currently use push notifications might do so if they got a smartwatch, and points to anecdotal information that some people don’t use push notifications because they require them to get their phone out of a pocket. “However, we believe this number is small, and therefore the effect limited,” Dawson notes.

Other problems include limited battery life, which is less than two days for most current models, as well as the problem of responding to notifications that appear on the smartwatch, the size and lack of attractiveness of current offerings, and display quality, says Dawson.

Google showed off its Android Wear software for smartwatches amid great excitement at its I/O conference in June, with attendees receiving a free smartwatch provided by LG or Samsung. New models are expected from Motorola within weeks, and Taiwan’s HTC is widely rumoured to be preparing to enter the fray.

Beyond Samsung, there are a number of other smartwatch makers, including US-based Pebble, launched by a $10m Kickstarter campaign in 2012.

NPD data says that Samsung and Pebble presently dominate the market, with 78% and 18% of sales respectively in the US between October 2013 and May 2014.

However Dawson cautions that hardware vendors should cut back on their investment in the space: “Market growth and the overall revenue opportunity remain poor,” he says.

He suggests would-be new entrants should be cautious about Android Wear, which offers limited chances to tailor its appearance or function, and so risks any hardware running it becoming a commodity: “We would advise most would-be vendors to stay out of the market,” he says, while saying that those who continue should aim to be cross-platform, working with Android and Apple’s iOS.

Time for Apple?
But if Apple decides to enter the wearables field, as has been widely rumoured though not confirmed, this could transform the situation, the report says. Unconfirmed reports have suggested that Apple is partnering with Swatch, or might introduce an “iTime”.

Dawson says: “Two major things could catalyse demand in this market: a player overcoming the significant technological challenges associated with the current smartwatch model, or a player which breaks the model and reinvents the category. Apple seems the likeliest company to do either of these things, and we believe that its entry – likely in late 2014 or early 2015 – will catalyse the market and drive much more rapid growth.”

He thinks that Apple will do “something completely different” – perhaps with a device lacking a screen, or in multiple forms to be worn on different parts of the body.

But he adds that “if Apple is able to create significant innovation in its product, most of the benefits may accrue to Apple itself, with a minimal halo effect [benefitting other vendors] on other vendors.”

Dawson warns that Apple’s arrival, if it happens, “may be a double-edged sword for existing vendors, at best” because it could dominate the market for iPhones, which make up 40% of smartphones in use in the US.

One possible use for a wearable device is for mobile payments, where people pay in a store using their mobile phone via systems such as NFC – which Apple has been rumoured to be investigating. But that too is a limited market: only 9% of adults said in the survey that they “use it all the time”, while 64% said they had never used it, and 10% had tried it once.

“Any smartwatch that incorporates mobile payments cannot simply continue to plough the same furrow as previous systems have,” the report notes, but must have far greater ease of use. It also has to contend with the lack of compatible systems in stores – “one of the biggest barriers to adoption today” – which creates a chicken-and-egg problem.

The survey also found that 80% of the population has never tried a fitness tracker such as the Fitbit, even though they have been available for more than five years.

The main users are in the 18-24 age group, but they have a high abandonment rate, with only 20% of respondents having tried one – of whom 45% (or 9% of the overall population) had given up using them.

Dawson points out that smartwatches can incorporate fitness tracking – but on the evidence that fitness trackers are being abandoned by consumers, that isn’t sufficient cause to drive sales given that trackers typically cost far less than $100, while smartwatches are pricier. Smartwatches can, though, incorporate many functions.
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Research and Markets: European Wearable Technology Market Outlook 2019

By |October 20th, 2014|Consumer Wearables, Forecasts (In-Depth), Market Data, Outside Sources*|

Research and Markets (www.researchandmarkets.com) has announced the addition of the “European Wearable Technology Market – Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019″ report to their offering.

Europe’s wearable technology market was valued at USD 308.69 million in 2013,
growing at a CAGR of 42.1% from 2014 to 2019

Wearable technology market is a niche market with current domination of a few players. As the technology is new and there are few players, the prices of the products are high.

However, the applications of wearable devices are currently spanning across sectors such as fitness and wellness, infotainment, healthcare and medical and industrial and military. Additionally, the applications of these new technology products are expected to increase with further development in the devices, over the forecast period.

The wearable technology market is segmented by application into fitness and wellness, infotainment, healthcare and medical, and industrial and military. Various products such as smart clothing and smart sports glasses, activity monitors, sleep sensors, smart watches, augmented reality headsets, and monitors in the wearable technology market are further included under these applications. These are further segmented into products with several features.

For example, outdoor activity watches have been segmented into watches with altimeter, barometer and compass. Other products have been further segmented and covered in the report. Among these, the fitness and wellness segment accounted for the highest market share in 2012 and is expected to maintain its position throughout the forecast period due to rising adoption of wearable technology products.

Major market participants profiled in this report include:

  • Google Inc.
  • Microsoft
  • Sony
  • Samsung
  • Nike
  • Adidas

European Wearable technology market by applications:

  • Fitness and Wellness
  • Infotainment
  • Healthcare and Medical
  • Industrial and Military

European Wearable technology market by products:

  • Smart clothing and smart sport glasses
  • Activity monitors
  • Sleep sensors
  • Smart watches
  • Heads-Up displays
  • Smart glasses
  • Continuous glucose monitor
  • Drug delivery
  • Monitors
  • Wearable patches
  • Hand worn terminals
  • Augmented reality headsets

NextMarket – Forecast: Over 50% of smartwatches shipped in 2014 to run Android acco

By |October 12th, 2014|Forecasts (In-Depth), Market Data, Outside Sources*, REPORTS & ANALYSIS, RESEARCH & DEVELOPMENT, Sample Reports|

Seattle – In 2014, the smartwatch market is expected to grow to 15 million shipments worldwide, up from 5 million shipments in 2013. According to a new report from NextMarket Insights, this strong growth is expected to provide a new market opportunity for Android moving forward, as the mobile operating system is expected to account for 53% of all smartwatches in the coming year.

“Today’s market for smartwatches is a mix of realtime operating systems based on FreeRTOS (such as the Pebble OS and the MetaWatch OS) and Android,” says Chief Analyst, Michael Wolf. “As Samsung enters the market and Google possibly builds upon its acquisition of WIMM, we expect Android-based smartwatches to see significant growth in the coming year.”

As the smartwatch market grows, a new opportunity will arise for app developers for Android and other smartwatch operating systems. Samsung has already began courting app developers for the Android-based Galaxy Gear, and Pebble has built a sizable base of watchface and app developers for the Pebble OS.

“We expect that the number of developers creating for wearables and smartwatches in particular will grow substantially over the next few years,” says Wolf. “Given the oversaturated smartphone app market, we believe that the smartwatch market could provide a new opportunity to develop smartwatch-optimized apps across a number of categories.”

Apple is expected to ship a smartwatch in the next six to twelve months, which will also spur additional interest in the smartwatch category.  By 2017, NextMarket Insights expects iOS to account for a quarter of all smartwatch operating systems.

The report, Smartwatch Forecast 2013-2020, is available today for purchase. A complimentary copy of the report’s executive summary is available  here. 

You can find NextMarket’s smartwatch resource site here

500 Smart Devices in Family Homes by 2022 [Gartner]

By |September 12th, 2014|Charts & Graphs, Forecasts (In-Depth), Market Data, Outside Sources*|

ShareMumbai: The falling cost of adding sensing and communications to consumer products will mean that a typical family home, in a mature affluent market, could contain several hundred smart objects by 2022.


Gartner
said that the smart home will be an area of dramatic evolution over the next decade and will offer many innovative digital business opportunities to those organizations who can adapt their products and services to exploit it.

“We expect that a very wide range of domestic equipment will become ‘smart’ in the sense of gaining some level of sensing and intelligence combined with the ability to communicate, usually wirelessly,” said Nick Jones, vice president and distinguished analyst at Gartner. “More sophisticated devices will include both sensing and remote control functions. Price will seldom be an inhibitor because the cost of the Internet of Things (IoT) enabling a consumer ‘thing’ will approach $1 in the long term.”

The number of smart objects in the average home will grow slowly for at least a decade because many large domestic appliances are replaced infrequently. However, although a mature smart home won’t exist until the 2020 to 2025 time frame, smart domestic products are already being manufactured and the first digital business opportunities they enable have already emerged.

Smart domestic product categories are manifold and range from media and entertainment, such as consoles and TVs, to appliances, such as cookers and washing machines, to transport technologies, security and environmental controls, and healthcare and fitness equipment.

Wireless technology will be a key foundation of the smart home and most of the device categories will be connected wirelessly although no single technology will dominate. Wi-Fi, Bluetooth, ZigBee, cellular and various proprietary and mesh networking wireless technologies will all find a place in the smart home. It’s therefore likely that a range of gateways and adapters will be necessary to bridge between the many different standards and protocols. Many domestic wireless smart objects will be portable and won’t have ready access to a wired power supply, so battery manufacturers will profit from the smart home as will developers of power supply and storage technologies such as wireless charging.

The smart home will enable new opportunities at all three levels of digital business framework business process (improving existing processes), business models (new business approaches that disrupt existing markets) and business moments (intercepting and exploiting transient business opportunities).

Despite the many business opportunities afforded by the smart home, the smart home vision faces many challenges, not the least that consumers may need to be convinced of its value. Some elements of smart home technology such as remote controlled switches and dimmers have been available for many years but have very little traction outside techno-geek users because few consumers see sufficient value.

Product designers must strive to create value that goes beyond technological novelty and simple control functions. Furthermore, smart products will be internally more complex than their predecessors but to be successful the product must appear simple and usable for nontechnical individuals.

Consumers are also likely to have concerns over data usage, security and privacy. Digital business models will rely heavily on the additional information that smart products collect compared with their “dumb” counterparts. But inappropriate use of this information could generate a consumer backlash. Business models that analyze information, especially those that combine information from several sources, must pay great attention to issues such as consumer opt-in, education and data security, and product developers should consider external audits of their information usage.

A lack of interoperability and standards may also hinder adoption of smart devices. Currently, the smart home domain is a confusing technical jumble that includes many different networking technologies and protocols, most of which are proprietary and don’t interoperate. Some interoperability initiatives are underway; however, it’s likely that although islands of interoperability will emerge around specific vendors and products, the domain will remain technically fragmented through 2020.

“Devices in the smart home will demand connectivity; some will demand high reliability as they’ll be performing vital functions such as health monitoring, so homes will require reliable high-speed Internet connections,” said Jones. “If these connections fail, many domestic devices might be forced to operate in, at best, a degraded manner. If homes become as dependent on good connectivity as businesses they will need fallback systems.”

 via Family home to have 500 smart devices by 2022 | ET CIO.