Report: Enterprise Wearables to Exceed $19 Billion by 2019Report: Enterprise Wearables to Exceed $19 Billion by 2019
Think wearable tech is just a fad? Get ready to think again, as new studies point to the enterprise wearables market exploding within the next five years. ABI research released several reports last week that predicted gee-whiz technology such as Google Glass, Pebble watches and the Galaxy Gear could bring in more than $19 billion a year by 2019.
May 19, 2014
Think wearable tech is just a fad? Get ready to think again, as new studies point to the enterprise wearables market exploding within the next five years. ABI Research released several reports last week that predicted gee-whiz technology such as Google Glass, Pebble watches and the Samsung Galaxy Gear could bring in more than $19 billion a year by 2019.
Over the next several years, ABI predicts wearable tech will become an integral part of enterprise mobile enablement strategies, as more executives begin donning their own sets of Google Glass and slipping on smartwatches. According to the research firm, among the six kinds of wearable devices available, including smart glasses, cameras, smart watches, health care, sports and activity trackers and 3D motion trackers, the business crowd will likely gravitate toward activity tracking devices such as the FitBit.
“There are cases being made for wearables in the enterprise despite the relative newness of the technology. However, which wearables are primed for enterprise usage and adoption is a more important question,” said Jason McNicol, a senior enterprise analyst for ABI Research, in the report. “Wearable technology such as smart glasses and those used for health care are better-suited for the enterprise as corporate-liable devices. Smartwatches, on the other hand, will most likely follow the trend of BYOD into the enterprise.”
The wearable tech market is expected to increase at a compound annual growth rate (CAGR) value of 56.1 percent over the next five years, leading up to the anticipated $19 billion peak in 2019. If ABI’s predictions are true, enterprise users in the North American region will be the largest consumers of wearable tech, with an estimated CAGR value of 39 percent over the next five years. The Asia-Pacific region is expected to become the second largest market by 2019 with a CAGR of 90 percent, according to ABI Research’s Enterprise Mobility Applications, Services and Devices and Wearables and Smart Accessories market research. Last year, ABI predicted annual wearable device shipments would reach 485 million units by 2018.
While many members of the tech community have postulated that wearables are just the latest fad, it seems there may be some longevity to the concept if enterprises begin to latch on to these devices for their corporate computing and BYOD needs. While the current lineup of wearable tech is still in its early stages, improvements over the next several years could see the devices becoming integral parts of everyday corporate life, similar to the way tablets have taken over as the go-to device for everyone from engineers to CEOs. The real deciding factors in the future popularity of these devices will ultimately come down to price, security and functionality, as corporations will have to juggle the relative advantages and safety of wearable tech for working on the go with their individual budgetary constraints.
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