Published on : Aug 05, 2016
Due to the increasing number of tech savvy youths, the technological market has taken a boost as the consumers are investing in luxury products to maintain their level of their lifestyle. The rising consciousness over health issues has compelled consumers to use products that can give them a regular check of their health status. With the increasing penetration of smartphones, consumers are optimistic on buying smartwatches that is supposedly to ease their busy schedule. The mass acceptance of smartwatches of middle and low end segment in developing countries such as China, Australia, Japan, Eastern Europe, and India has also helped in increasing the sales of smartwatches in these regions.
Shift in Smartwatch Business to Multinational Companies from Start-ups to Drive Growth of Smartwatch Industry
After their invention, smartwatches were basically a part of start-up businesses due to their low popularity. Startups provided a platform for innovative marketing and business expansion due to their innovative approaches and online reach. As consumers started gaining more awareness about the use of smartwatches and their enhanced connectivity with smartphones through Bluetooth, the demand for these watches started surging resulting in a paradigm leap in the business. The manufacturers of smartwatches are likely to collaborate with big business houses to expand their business and capture an international market for their products. In this regard, it is anticipated that the global smartwatch market is to witness a positive growth in future.
Limited Power Source and Battery Backup to Hinder Demand for Smartwatches
Due to limited battery backup and limitation on the size of the power source of smartwatches, it becomes difficult for consumers to use them for long hours. Moreover, the dying battery life of smartwatches is anticipated urge customers to walk away from the products. In spite of smartwatches being effective in monitoring day to day events and health status, the defaults in battery life and size of the power source is projected to hamper the demand for smartwatches globally.
Though the convergence of cloud, wearable technologies, and internet is likely to provide growth opportunities to the players operating in the smartwatch market.
North America is projected to lead the global smartwatch market with a share of 34.5% in 2013. The global smartwatches market is expected to grow at a 53.6% CAGR between 2014 and 2020. The Android Wear OS segment is likely to grow at a speedy CAGR of 57.9% between 2014 and 2020.