IHS SEES WEARABLE TECHNOLOGY MKT SHIPMENTS RISING 500% '11-'16

     (The following press release from IHS was received by e-mail and was 
reformatted. The sender verified the statement.) 
Wearable Technology Market Suited for Rapid Growth 
El Segundo, Calif. (Oct. 11, 2012)—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, recently acquired by IHS 
(NYSE: IHS).However, by 2016, shipments will increase to 92.5 million units, 
based on the most likely forecast scenario from IMS Research, as presented in 
the figure below.                                                                
“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. 
For more information, please contact: 
Jonathan Cassell
Senior Manager, Editorial
jonathan.cassell@ihs.com
Direct: + 1 408 654 1714
Mobile: + 1 408 921 3754 
Or 
IHS Media Relations
press@ihs.com
+1 303 305 8021 
(kgt)NY 
 
 
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