IHS, a market research company based in the USA, says revenues for smartwatches will be worth around $300 million this year and predicts a rise of 80 percent annually for “at least” four more years to come.
IHS claims the market will be worth around $23 billion by 2023, with shipments of 800 million units – compared to 54 million this year. Those optimistic figures are fuelled by the belief that we’ll see better resolution and colour displays in years to come.
Sweta Dash, who analyses displays at IHS, believes that fashion will drive sales. “Wearables are best viewed as functional fashion accessories rather than as electronic goods. Because the fashion accesory market is determined by design rather than by simple function, wearable products such as smartwatches must be adapable to various forms including squares, circles, or even ovals.”
Battery power is important too.
But Dash sounds a word of caution in what otherwise is a very upbeat report. “Smartwatches and smart glasses from Google and others are not completely ready for mainstream consumer adoption.” They’re all expensive and won’t make them mass market until prices drop.