© daimy dreamstime.com Electronics Production | October 15, 2012
Wearable Technology market suited for rapid growth
Encompassing such varied products as augmented-reality eyeglasses, cocktail dresses that light up when a cell phone rings and sports bras that monitor heart rates, the wearable technology market is on the fast track with growth, with shipments likely to rise by more than 500 percent from 2011 to 2016.
In 2011, 14 million wearable technology devices were estimated to have been shipped, according to a new report from IMS Research. However, by 2016, shipments will increase to 92.5 million units, based on the most likely forecast scenario from IMS Research. “Wearable technologies provide a range of benefits to users, from informing and entertaining, to monitoring health, to improving fitness, to enhancing military and industry applications,” said Theo Ahadome, senior analyst for medical research at IMS Research. “Because of all these uses, IMS Research foresees major potential for growth in all kinds of wearable technology products.” If the technology fits, wear it Wearable technology includes products that are worn on an individual’s body for extended periods of time, significantly enhancing the user experience via features including advanced circuitry, wireless connectivity and independent-processing capability. Wearable technology fits into four different categories: fitness and wellness, healthcare and medical, industrial and military, and infotainment. Fitness and wellness wearable technology products are used to monitor activity and emotions, while healthcare and medical devices monitor vital signs and augment senses. Industrial and military wearable technology receives and transmits real-time data in military or industrial environments. Infotainment technology is used to receive and transmit real-time information for entertainment and enhanced-lifestyle purposes. Wearable scenarios With the wearable technology segment so broad in terms of products and applications, IHS has developed three scenarios for growth in the coming years: a pessimistic low-end outlook, a most likely midrange forecast and an optimistic, high-end prediction. The low-end forecast calls for shipments to rise to only 39.2 million in 2016, and presumes wearable technology market growth will be limited by factors such as a lack of product availability, poor user adoption and deficient overall experience. Still, even with these challenges, shipped devices could grow by nearly threefold between 2011 and 2016. The midrange, most likely scenario described at the opening of this release presumes there will be some market constraints including the lack of reimbursement in medical applications and a paucity in product introductions by major suppliers. However, these will be offset by the improved functionality of non-wearable devices—which helps explain the bigger numbers over the low-end forecast. The optimistic scenario is one where significant progress and success has been achieved in wearable technology, including the introduction of new products and widespread availability from major brands. In this scenario, 171 million devices will ship in 2016—a whopping twelvefold expansion from last year. Notwithstanding the growth figures, these various scenarios reflect continuing uncertainty over the long-term future of wearable technology and the varying factors that affect future outcomes. Wearable applications The highest revenue-generating areas last year for wearable products were in two segments—healthcare and medical on the one hand, and fitness and wellness on the other. In both these segments, continuous-glucose monitors were the highest-grossing device for revenue. The need for continuous data on blood glucose levels, particularly Type I diabetes patients, has become critical in the treatment of the disease, providing impetus for monitor devices. Medtronic, Abbott and C8 MediSensor are the companies playing heavily in this field. In the low-end forecast, both segments are expected to continue to account for the highest share of revenue until 2016. In the midrange forecast, infotainment will overtake fitness and wellness to become the second-largest application area in terms of revenue, driven by robust growth in the area of smart watches. Healthcare and medical will continue to be the largest application area in both low-end and midrange forecasts. In the high-end forecast, infotainment is projected to account for the largest revenue share of 38 percent by 2016, driven by the uptake of smart watches and smart glasses. The United States is the leading region for wearable devices at present. This won’t change anytime soon, as IHS forecasts the U.S. will continue to be the largest geographic region for wearable technology through 2016. Europe, meanwhile, is growing its share of revenue for wearable devices and will be the second-largest region by 2016, most notably in the healthcare and medical application area. This is because healthcare providers there are expected to respond to the successful cases recorded in the U.S. For the rest of world, Japan is expected to constitute the major market, particularly in the infotainment area.
Intel to reclaim No.1 semiconductor supplier ranking in 2019 IC Insights says that only three among the top-15 semiconductor suppliers are forecasted to show growth this year.
Veoneer joins Autonomous Vehicle Computing Consortium Veoneer has joined the Autonomous Vehicle Computing Consortium (AVCC) to speed autonomous driving vehicle development.
Ongoing trade issues have opened up Chinese market for Viscom According to Carsten Salewski, Chinas move towards more independence has resulted in more customers from the region; especially within the automotive sector.
Don't forget about human inclusion in industry 4.0 Michael Ford from Aegis Software is reminding the industry in the midst of connectivity that our most powerful asset is still the human employee.
Sponsored content by EsemdaContract manufacturer Esemda opens new facility in Vilnius and expands EMS The new facility has been built with reserved space for future expansions. As Esemda constantly grows, it is of great importance to be able to rapidly increase production capacity in large volumes.
East West Manufacturing acquires Adcotron EMS East West Manufacturing has acquired Adcotron EMS, a provider of specialized electronics manufacturing services, including advanced printed circuit board assemblies, box-build assemblies, testing, and new product introduction services.
Benchmark's Thailand facility earns MedAccred PCBA accreditation The EMS provider announces that its facility in Ayutthaya, Thailand has earned the MedAccred Printed Circuit Board Assembly accreditation.
HZO unveils larger HQ in North Carolina HZO, known for protective nano coatings designed to help electronics withstand corrosive liquid environments, held an open house at its new headquarters in Raleigh, North Carolina this week.
Luminator Technology relocates some production to Texas Luminator Technology Group has relocated production of its Apollo Video Technology RoadRunner mobile video security solutions to Luminator’s headquarters in Plano, Texas.
Sponsored content by Z ElektronikaZ Elektronika opens new factory in Pécs To keep up with rapid growth of the company, on the 13th September Z Elektronika celebrated the grand opening of its new electronic design and manufacturing facility close to the highway in Pécs, Hungary, which adds new features and production site to its nearby location.
Kurtz Ersa invests heavily in development to stay on top With more than 30 percent of its employees involved in research and development, the company is making sure that it is able to respond to its customers needs at all times.
BMW's new battery cell centre to handle everything from material to prototyping The BMW Group is looking fortify its position in the world of electric mobility and has pooled its many years of experience with battery cells and extensive knowledge in the field in a new Competence Centre.
Cicor selected as production partner for drug delivery system Cicor announces that it has won a major new customer in the medical technology sector, one of the company's strategic target markets.
Keysight, FormFactor and CompoundTek to collaborate Keysight, FormFactor and CompoundTek, have formed a joint plan to provide an advanced photonics on-wafer testing solution to include automated alignment, simultaneous optical-optical and optical-electrical device tests.
Sponsored content by SourcengineComponent Aggregators vs E-Commerce Marketplaces What is the difference between electronic component aggregators and a marketplace?
67% of a buyer’s journey is now done digitally. Learn how marketplaces emerged as full-cycle procurement platforms and challenged the traditional component aggregators.
Wireless Telecom buys Holzworth Instrumentation Wireless Telecom Group Inc. has signed a definitive agreement to acquire Holzworth Instrumentation Inc., a Boulder, Colorado-based provider of specialty phase noise analyzers and signal generators.
NCAB Group acquires Altus-PCB in USA Altus-PCB is a full-service supplier of PCBs based in New Jersey, USA, that has a business model similar to NCAB’s. The US company has a high level of technical expertise and sells mainly to original equipment manufacturers (OEMs).
Mycronic's Thomas Stetter looks back at a successful year As the company is moving more and more towards becoming a full solutions provider, business is taking off and the numbers show very much confirms that the Mycronic's strategy is working.
IBL Löttechnik reviews 2019 IBL Löttechnik GmbH is staying on top of the market thanks to continues R&D investments.
Second install for EFI at Mid America Display Silicon Valley’s EFI will install a second EFI Nozomi C18000 single-pass inkjet, direct-to-board printer later this month to Mid America Display.
Ron Jakeman of Electrolube looks back at a successful 2019 Electrolube has been growing, both in terms of its footprint and financially, for a number of years not; Ron Jakeman details the company's progress.
Etteplan and Scanfil to start strategic cooperation in joint customer projects Engineering company Etteplan and contract manufacturer Scanfil have today agreed to enter a strategic partnership in Finland.
The lovechild of ACE Production and InterSelect Carlos Bouras of Nordson Select gave us the rundown of the result of the integration and combination of ACE Production and InterSelect GmbH - the new Integra.
American Battery Metals, U.S. lawmakers convene American Battery Metals Corporation has completed a series of meetings with lawmakers and personnel in the Department of Energy and Department of the Interior in Washington, D.C., to discuss issues critical to the domestic battery production and storage industry.
Cogiscan, Critical Mfg. form strategic partnership Quebec, Canada-based Cogiscan and Critical Manufacturing, headquartered in Portugal, have forged a strategic partnership to deliver smart factory solutions for electronics manufacturers.
Collins Aerospace expanding in North Africa Collins Aerospace Systems, a unit of United Technologies Corp., has taken the first step toward the expansion of its existing site in Casablanca, Morocco.
The advantage of Vantage - Garrett Wong tells the tale Nordson Asymtek's Garrett Wong gives us a rundown of the business year and also details the Vantage AdvantageLoad more news