Wearable electronicecosystem's value estimated to be more than $4 billion as of 2012, and is expected to cross $14 billion by 2018
Wearable technology is growing rapidly through to 2018, according to a new study. The global wearable electronics market is expected to cross $8 billion in 2018, growing at a healthy CAGR of 17.7% from 2013 to 2018.
The total unit shipment is expected to cross 130 million units globally in 2018, said RnR Market Research. In terms of products, wrist-wear accounted for the largest market revenue in 2012, with total revenue of the most established wearable electronic products – wrist-watches and wrist-bands combined – crossing $850 million. The potential of the industry can be gauged by the fact that both the big and established players and small start ups have up their ante in wearable electronics market.
Among application sectors, consumer applications accounted for the largest market share, with revenue crossing $2 billion, as of 2012. However, that of enterprise and industrial application is expected to grow at the highest CAGR (more than 21%), during the forecast period of 2013 to 2018.
North America accounts for more than 80% of the market and is the single largest revenue base for this global market. It is expected to maintain its dominance during the forecast period. However, the market in Asia-Pacific, with China leading the way, is likely to grow at the highest CAGR during the next five years.
The global wearable technology ecosystem's value was estimated to be more than $4 billion as of 2012, and is expected to cross $14 billion by 2018, growing at a CAGR more than 18% from 2013 to 2018.
The total addressable market (TAM) for wearable technology is estimated to be more than $14 billion as of 2012, and the current level of penetration for wearable technology was estimated to be roughly 18%. This market penetration rate of wearable technology is expected to accelerate (increasing rate of penetration every year,) over the next five years, reaching roughly 46% penetration level in the TAM, by 2018.
The global wearable electronic textiles market is expected to grow faster than that of the overall wearable electronics market, with increasing demand and growing consumer adoption for wearable electronic smart-textiles, along with expected commercialization of more advanced – wearable electronic e-textiles by 2016.
The market of electrical and electronic components for wearable electronic products is also expanding rapidly, as the market value of components amounts to roughly 66% of that of products. With dynamically changing landscape for components in wearable electronics, the global wearable electronic components market is expected to cross $6 billion by 2018, offering huge revenue potential for key electronic component manufacturers focusing on this field.