|The adoption of wearable AI has shown continuous growth. It is primarily driven by the rising importance given by consumers toward health and fitness / Photo by: lightfieldstudios via 123RF|
The adoption of wearable AI has shown continuous growth. It is primarily driven by the rising importance given by consumers toward health and fitness. The boost in the adoption of wearable technology has been expected due to the increasing prevalence of obesity and other cardiac illnesses across the globe.
A 2017 report by Gartner Inc., a global research and advisory firm providing information, advice, and tools for businesses in IT, finance, HR, customer service and support, legal and compliance, marketing, sales, and supply chain functions, showed that the worldwide wearable market reached a new all-time high in 2016. Smart Insights, a publisher and online learning platform, reported that shipments reached 33.9 million units in the fourth quarter of 2016, growing 16.9 percent year over year. During the same year, more than 102.4 million wearable devices were sold—a 25 percent increase from the previous year.
Individuals are not the only ones getting interested in wearable AI but companies as well. Recently, Duke athletes Ivonnna Dumanyan and Gabrielle Levac started a tech startup called Fathom AI. Both of them have suffered sports-related injuries while playing for Duke University. They thought of creating a sensor that aims to monitor an athlete’s movements in a manner similar to methods used by lab technicians, doctors, and physical therapists.
“The type of elite care and athletic training rooms we were getting at Duke is not available to most people. And it wouldn’t be available to us after graduation. Anyone who’s active and who’s experienced preventable injury could benefit,” Dumanyan said.
According to Hypepotamus, a digital publication that covers the Southeastern innovation economy, Fathom AI aims to commercialize the wearable biometric sensors that health professionals use to help athletes prevent injury, optimize recovery by increasing mobility, or rehab old injuries. This new wearable AI device shows the demand for devices that would address any health issue.
Spending on Wearable AI Devices Will Increase by 27 Percent
The growth of wearable AI on the tech market continues to evolve and is expected to gain more popularity in the coming years. A recent report by Gartner showed that consumers are projected to spend more than $52 billion on wearable technology in 2020. This is 27 percent more than the approximately $41 billion they will spend this 2019.
Information Age, an online portal that provides the latest news, analysis, guidance, and research, reported that the affordability of wearable devices will influence the market in the future. Aside from that, “miniaturization” is projected to boost the wearable AI market as sensors improve and become smaller. With the advancements in miniaturization, companies developing wearable devices can integrate sensors that can track sleep or medical conditions that are almost undetectable to users.
Alan Antin, a senior research director at Gartner, reported that the discrete and nearly invisible wearables would become more acceptable to reluctant users. It is projected that miniaturizing capabilities will improve by 2023 so that one-tenth of all wearables will be unobtrusive to the user.
|The growth of wearable AI on the tech market continues to evolve and is expected to gain more popularity in the coming years / Photo by: Varin Rattanaburi via 123RF|
Also, the report showed that consumers will be spending on smartwatches and smart clothing the most by 2020, with spending growth of 34 percent and 52 percent, respectively. Ranjit Atwal, senior research director at Gartner, stated that more users are starting to replace their wristbands with smartwatches.
“While brand leaders Apple Watch and Samsung Galaxy Watch command premium pricing in the smartwatch segment, lower-priced players such as Xiaomi and Huawei will counterbalance high-priced smartwatches with lower cost smartwatches. We expect average selling prices of smartwatches to decline by 4.5 percent between 2020 and 2021,” Atwal added.
It was also reported that shipments of smartwatches and ear-worn devices will take the lead by 2020, with totals of 86 million units and 70 million units, respectively. As of now, some of the companies that are competing in the ear-worn wearable market include Apple (AirPods), Samsung (Galaxy Buds), Xiaomi (AirDots), Bose (SoundSport), and Amazon.
The increasing number of wearable users is also influenced by data security and privacy issues. This after several wearable device organizations and ecosystem providers committed to continuously invest in protecting user data.
|As of now, some of the companies that are competing in the ear-worn wearable market include Apple (AirPods), Samsung (Galaxy Buds), Xiaomi (AirDots), Bose (SoundSport), and Amazon / Photo by: burdun via 123RF|
Wearable AI Market to Reach $180 Billion by 2025
Earlier this year, market research and strategy consulting firm Global Market Insights projected that the wearable AI market will reach $180 billion by 2025. This growth is mainly driven by the increasing adoption of smartwatches, thanks to continuous improvements in their design and functionality along with their availability at a lower price. Also, the technological advancement in miniaturized electronics would be a significant factor that will propel the wearable AI market.
AZ Big Media, an online site that features the most compelling business and lifestyle news, reported that the earwear market is anticipated to attain a growth rate of more than 43 percent while the gaming market is projected to register a CAGR of more than 35 percent during the forecast period. Unfortunately, the increasing data security concerns on smart wearable devices would hinder this growth. This is because most of the smart wearable devices lack basic security mechanisms.
The large market of wearable AI is attributed to the fact that consumers around the world are focusing on their fitness and are willing to adopt technology to help them achieve their goals. A lot of companies are creating wearable fitness monitoring devices to attract health-conscious customers.