Study: Wearables Big Growth Forecast

The embryonic market for wearable technology isn’t much to look at right now—no pun nor offense intended to Apple (AAPL), Motorola (MOT), Samsung, Sony and others—but wearables and associated apps are on the cusp of rapid growth in the next five years, according to a new Internet of Things (IoT) study from the Acquity Group.

Acquity, a unit of IT consulting services provider Accenture Interactive, relied on consumer-provided data in the United States gleaned from 2,000 surveys to compile information on the adoption of connected devices such as home automation products and wearable technologies.

Right now, only 7 percent of consumers own a wearable device, but wearable technology ownership is forecast to double by 2015 to 14 percent and double again to a 28 percent adoption rate by 2016, meaning nearly one in three consumers will own a wearable device. Fitness bands initially will lead the way, not smart watches, according to Acquity’s data.

Here are some of the study’s highlights on wearables:

• Wearable fitness applications and associated hardware are expected to see the fastest rate of adoption in the next five years, with 13 percent of consumers planning to purchase in the next year and a total of 33 percent planning to adopt the technology in the next five years.
• After fitness bands, smart watches will be the second-most popular wearable device, with 5 percent planning to purchase in the next year and a total of 23 percent planning to adopt in the next five years.
• Security concerns, heightened by a recent spate of highly publicized retailer data breaches, have slowed the rate of adoption of wearable technologies, at least for the moment. Some 57 percent of consumers said they’re less likely to buy a wearable device owing to security issues.

“Long-term potential adoption rates across categories of consumers underscore the significant opportunity for retailers and companies,” Acquity said. “Even though widespread adoption of IoT technology is not here yet, the market is showing future signs of massive consumer adoption of connected devices and objects.”