Retail revenues from wearable tech devices – like smartwatches and glasses – will reach $19 billion by 2018, reckons Juniper Research.
The company estimates the market is already worth some $1.4 billion this year, and predicts the impressive revenues will be driven by high price points and strong demand.
Juniper’s latest report states that the market attractiveness of wearable tech "has led to the emergence of a host of players competing against each other, and competition is expected to intensify".
“It is worth observing that this change in adoption levels can also be attributable to heightened consumer awareness of wearable technology and a better visibility of product adoption, especially in the smart watch segment”, said report author Nitin Bhas.
The report predicts that several changes will occur in the smart wearable device market, including the introduction of subscription models. Firms such as Fitbit and FiLIP looking to develop recurring revenues through premium services facilitated via wearable tech.
For example, FiLIP is an app-based communication watch for kids which combines GPS, Wi-Fi and keeps parents and kids connected via two way voice calling, messaging and location functionalities. It’s expected to have a device price and an ongoing monthly plan.
Juniper also expects the wearable tech market to change as a result of developments in the app model, and due to the increasing use of embedded cellular connectivity within devices.