Dallas – The global smart-watch market will grow at a CAGR of 96.8 percent from 2014 through 2019 for a 13-fold gain from 2014 levels, putting smart watches on the wrists of more than 10 percent of the world’s population, ReportsnReports found.
The company defined smart watches narrowly as devices that make and receive cellphone calls or receive notifications of cellphone calls, send and receive text messages or receive notifications of text messages, browse the Internet, and display time and date.
The statistics exclude stand-alone wristbands meant solely for fitness activities or for any other application that lacks the functions defined in the study.
The company contends the market will be ignited by the introduction of the Apple Watch, but lower-cost devices will also drive the market as chipset and component prices fall. Prices will fall also because new business models will become established. NFC will make the biggest impact on new business models, “opening the door to new applications, particularly in the areas of access control, loyalty, payments and travel,” the company said.
Built-in Wi-Fi, though it drains batteries faster than Bluetooth, will enable “independent connectivity” that “could introduce new opportunities, particularly for mobile operators,” the company added.
Innovation is also driving up demand, which did not grow as expected in 2010 through 2013, the company said in citing Motorola’s addition of hands-free voice command on its smart watch.
Consumer interest in the devices, the company added, has grown with the entry of new vendors.
One major challenge is the still-high price of smart watches, the company said.
A growing trend is vendors’ partnership with the fashion industry to drive up sales.
ReportsnReports based its findings on a database of more than70 models, mobile industry forecasts, end-user research and a global survey of over 200 industry players.