The global wearable payment market was valued at more than $22 billion in 2015 and is expected to reach almost $228 billion by 2020, says Technavio.
Technavio has announced its latest market research report on wearable payment for the forecast period, 2016-2020. This market analysis, under the Internet and e-commerce vertical, discusses the major drivers and key emerging trends that will influence the growth of the global wearable payment market during the forecast period. Some of the top vendors listed in this industry analysis include Apple, Jawbone, Google, MasterCard, Samsung Electronics, and Visa.
In terms of geographical analysis, the Americas will account for the largest share of the global market and will reach revenue of around $117 billion by 2020. The US is likely to emerge as the key revenue-generator.
“The entry of several start-ups and technology companies in the market space is intensifying the competition in the global market for wearable payments. Every half year, companies are launching newer versions of the existing products. Manufacturers are also reducing the costs of the existing versions to increase their sales and allow the entry of newer versions of products. This trend is expected to cause a drop in the prices of smartwatches, resulting in their increased adoption,” says Ujjwal Doshi, a lead analyst at Technavio for research on Internet and e-commerce.
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The new industry research report from Technavio analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Growing adoption of contactless payments
The popularity of contactless payments is on the rise with the increasing adoption of wearable devices. This is driving merchants to adopt platforms that facilitate contactless payments. NFC POS terminals have proved to be effective for such payments, in terms of flexibility and ease of use. NFC POS terminals also increase the value proposition and effectiveness of marketing efforts. Contactless payment offers high security against hacking, where neither a consumer nor retailer can access the card information or security code illegitimately. Contactless payment gateways require users to save their secure elements in their wearable devices once.
Declining cost of NFC technology
NFC technology has become more affordable for device manufacturers that integrate the technology into wearable devices. Furthermore, as the number of vendors offering wearable devices is increasing, it is likely to support the growth of the wearable payment in the coming years. The declining price of NFC technology and the growth of the NFC ecosystem that supports various NFC applications are encouraging vendors to integrate NFC technology into wearable devices.
Growth of m-commerce market
The increase in the availability of low-priced and high-tech smartwatches is expected to fuel the growth of the m-commerce market during the forecast period. The global m-commerce market was valued at more than $291 billion in 2015, and it is expected to reach nearly $980 billion by 2020. M-commerce has its main applications in the retail industry, with retailers such as fashion house Miroglio Fashion in Italy, Starbucks coffee chain in France, Woolworths and Coles in Australia, and McDonald’s supporting NFC-based mobile payments. The increased adoption of NFC-based mobile payments in the m-commerce market will propel the demand for wearable payment in the global market during the forecast period.
Some of the other prominent vendors identified in this report are Alibaba Group, American Express, Barclays, Broadcom, Fitbit, Gemalto, Infineon Technologies, Inside Secure, MediaTek, Microsoft, NXP Semiconductors, Qualcomm, PayPal, Renesas Electronics, Sony, and Xiaomi.
This research report includes an in-depth analysis, market shares, and sizes of the sub-segments and geography. It provides a comprehensive analysis of the key companies, including their market shares, business overview, and key financials. The market study also offers a detailed analysis of key drivers, challenges, and opportunities influencing this market.
A more detailed analysis is available in the Technavio report titled, ‘Global Wearable Payment Market 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.
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