LONDON--(BUSINESS WIRE)--Technavio’s latest report on the global smartwatch market provides an analysis on the key trends expected to impact the market outlook through 2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
The top four emerging trends driving the global smartwatch market according to Technavio hardware and semiconductor research analysts are:
- Crowdfunding
- Strategic alliances
- Popularity of low-cost smartwatches
- Integration of haptic technology in smartwatches
Crowdfunding
Several vendors in global smartwatch market have taken the crowdfunding route to raise funds for their projects. This has benefitted the market in several ways like increasing awareness among potential customers and providing enormous opportunities for small vendors to innovate and succeed in the stiff competition
According to Sunil Kumar Singh, a lead analyst at Technavio for computing devices, “Crowdfunding allows vendors to anticipate the interest for their products and directly communicate with potential buyers and involve them in the product development stage. This helps vendors build the right products for the market.”
Pebble smartwatches raised USD 10 million in a crowdfunding campaign in 2012. The smartwatch by Kreyos raised USD 1.5 million in a crowdfunding campaign in 2013. Pebble smartwatches raised another USD 20.33 million in a crowdfunding campaign in 2015. Sony is also crowding its new premium smartwatch "Wena Wrist" through its own First Flight crowdfunding platform in Japan. This smartwatch is slated to be released in 2016.
Strategic alliances
Smartwatch consumers focus on compatibility with existing devices, ease of use, and physical appearances while making purchasing decision. Therefore, vendors in the market are making strategic collaborations with fashion designers, technology providers, software developers, and other industry participants to make a positive impact on customers.
In 2014, Samsung announced a Trek deal with Trek Bicycle, under which Samsung provided cyclists, coaches, and staff with Samsung mobile devices such as Galaxy S5 and the Gear portfolio - Gear, Gear 2, Gear Fit. In March 2015, TAG Heuer announced strategic partnership with Google, and Intel to develop Android Wear smartwatches. At CES 2015, Martian Watches partnered with fashion brand Guess to produce the Guess Connect smartwatch.
Popularity of low-cost smartwatches
Smartwatch manufacturers across the globe are aiming at developing low-cost smartwatches to attract the customers to the market. The ASP of smartwatches in 2015 was USD 334.9, which was still high for the majority of users to buy these devices. The Apple Watch managed to create some excitement among consumers, which resulted in increased awareness of the potential benefits of using the device.
“ASUS launched Asus ZenWatch 2 at a starting price of USD 149. Pebble released Pebble Time Steel at a price starting from USD 249.99 in 2015. Xiaomi is planning to launch its first smartwatch priced at USD 100 or below,” says Sunil.
Integration of haptic technology in smartwatches
In the past, wearable devices such as smart bands, and smartwatches used haptic technology for alerts and notification purposes. Smartwatches have moved further since then to integrate forced feedback with haptic technology.
“One of the major function of smartwatches is eliminating the need to take the cellphone out of the pocket as they are able to read text messages, emails, and calls through a variety of alarms and alerts. This is where the haptic technology comes into use. It helps differentiate between the types of notifications. Since smartwatches are wrist worn, the user can easily differentiate between different alarms and alerts,” says Sunil.
In 2015, Apple introduced its smartwatch integrated with its patented haptic technology. With the use of haptic technology by Apple, Technavio expects other smartwatch manufacturers as well to introduce this disruptive technology to differentiate their products from their competitors.
Browse Related Reports:
- Global Smartwatch Display Market 2015-2019
- Smartwatch Market in Japan 2015-2019
- Global Flexible Display Market 2015-2019
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