Intel's Basis Peak devices face a massive recall stemming from overheating issues, which may hinder Intel's wearable technology ambitions. The industry as a whole, however, is flourishing, with the wearable tech market expected to see tremendous growth by 2025.
Wearable technology will have a very positive growth expectancy over the next nine years, according to a recent study dubbed "Wearable Technology Market to 2025 - Global Analysis and Forecast by Product and Application," conducted by The Insight Partners.
The report places wearable technology at the vanguard of growing technology sectors, with a market value of $170.91 billion by 2025. To put it in perspective, wearable businesses were estimated to rank at $26.19 billion in 2015.
The report underlines what the big trends are on the global market, as well as what impediments the wearable industry may face in the future.
For one thing, multiple areas are beginning to absorb wearable gadgets as integral to their work, with examples such as medical, health and fitness, fashion and lifestyle, entertainment and media, and more. With companies racing to be ahead of the pack in innovation and user-friendly solutions for smart glasses or smart clothing, mass adoption has been only a matter of time.
Users are becoming more familiar with having handy gadgets in close proximity, and with the explosion of Internet of Things (IoT) platforms, wearables are gaining a fast track in becoming a standard for various everyday activities. These are some of the sustainable factors for the development and growth of the wearable technology market in the specified timeline.
However, some issues could hinder the surging success of wearables. The most prevalent are increased concerns about how companies handle data privacy, the (still) hefty prices of such devices and their short battery span.
Smartwatches have been leading the pack on the market of wearable technology, and the study estimates that the gadgets will be among the most important parts of the market for the forecasted period. Specifically, smartwatches are supposed to rank 19.96 percent of the total market revenue share in 2025.
Wearable technology solution providers, as well as device makers, saw a surge in orders especially in markets in Europe, North America and Asia Pacific (APAC). Reasons for the increased popularity of wearables in these areas can be traced to increased health awareness and changing lifestyle, paired with accelerated technological adoption trends. The latter of the three areas is expected to see a blooming increase of wearable adoption, as regional players are preparing to roll out innovative solutions at very competitive prices.
APAC not only has the biggest market share in all regions when it comes to wearable technologies, but it also has the potential to take the lead during the 2016-2025 timeline.
The Insight Partners estimates that the region will report at growth rate of 22.6 percent over the forecast period.
In 2015, Brazil was one of the top wearable technology markets in South America and might score a compound annual growth rate (CAGR) of 24.1 percent in the timeline.
The survey from Insight Partners analyzed data belonging to big names in the tech industry, such as Apple, Fitbit, Garmin, Google, Intel, LG Electronics, Medtronic, Microsoft, Nike, Pebble, Samsung, Sony, Suunto Oy and Xiaomi.