There is no denying that wearable technology is quickly growing to become a major contender for most popular in consumer electronics.
We think so too! Just read some of our articles about it:
- 4 Market Trends that Prove that Wearable Technology is Here to Stay
- Wearable Technology is Changing the Game- Literally
- Top 116 Wearable Technology Companies and the Products They Offer
But what we haven’t touched upon yet are the potential downsides for the Wearable Technology Market. With wearables expected to revolutionize consumer tech (and post a CAGR of 32.78 percent from 2014-2018) what are the hurdles that could affect their growth?
In preparation for the upcoming Wearable Tech Expo beginning this Wednesday, We’ve taken a look at some of the factors that could hinder market growth:
Design Constraints
One of the major challenges in the Global Consumer Smart Wearable Technology market is the design constraints of wearable devices because most consumers use normal wearable accessories such as watches, jewelry, wristbands, and glasses to make a statement about their personal identity. In this case, the wearable item reflects the fashion trend of the users.
Currently, most smart wearable device manufacturers are focused on technology rather than on design. For instance, most of the smart watches run on processors and components that are designed for smartphones so they are bulkier than a normal watch. Similarly, smart wearable eyewear may not reflect the fashion preferences of the user.
High Power Consumption
One of the major challenges for vendors in the market is the high power consumption of smart wearable devices. Most wearable devices use wireless networks, GPS, and other technologies that consume a lot of power.
Currently, the battery power of wearable devices lasts for one to two days. In the case of intensive usage, the battery lasts for less than a day. For instance, the Google Glass battery lasts for 4-8 hours during intensive usage.
Thus, the short battery life and high power consumption of wearable devices are reducing usage and adoption, which is expected to hamper the growth prospects of the market during the forecast period.
High Initial Cost
The high cost of smart wearable devices is one of the major challenges that is expected to curtail the growth of the market during the forecast period. Most manufacturers in this market are launching their products in the premium product category.
For instance, the ASP of a smart wearable device is US$350-380, depending on the application. The ASP of healthcare wearable devices is US$720-750, while the ASP of fitness and lifestyle products is US$280-350.
In addition, the prices of branded products are very high. For example, Google Glass is priced at US$1,500. As a result, the mass adoption of wearable devices is very low because of a general lack of affordability.
Lack of Data Privacy and Security
Most wearable devices are small in size, but they are able to store a large amount of data. The small size of these devices means that the chance of them being lost or misplaced is high. Since they store a large amount of sensitive information, smart wearable devices can cause a disruption in work for users.
In addition, wearable devices use GPS navigation systems to receive location-based information. Sometimes, users have to share their location to obtain certain information. For instance, Google Glass users have to share their location while checking-in at Foursquare, which is stored in its database. This information can be retrieved and used by advertisers as well.
Moreover, the data about a subscriber’s location is owned and controlled by the respective network operators, which includes mobile carriers and mobile content providers. With operators privy to such information, end-users are concerned about their privacy, despite legal frameworks to safeguard it.
Usage Restrictions
Though wearable technology hasn’t been around for long, it has been on many companies’ radars for a while. As we all know, the possibilities are endless for wearable technology. But while this is great for consumers, it isn’t the best news for businesses that require strict laws and high security to operate.
So far, wearable technology has been banned in casinos, movie theatres, and even some restaurants have disallowed their patrons to adorn wearables.
When we asked MGM Resorts International what steps they’ve taken in the war against wearables, Clark Dumont, Senior VP of Corporate Communications said:
“we fully utilize our resources to keep pace with technology and install counter-measures when weaknesses or potential weaknesses are identified. It has long been our policy that no unauthorized photography nor videography is allowed in our casinos. We stand behind the reliability of our security and surveillance systems, and are committed to maintaining fairness in our operations for all guests.”
Will the Market Survive?
While these challenges will no doubt impact the growth and adoption of wearable technology worldwide, they won’t stop the market from progressing. We mustn’t forget that this market is still in its infancy, and therefore has a lot of “growing up” to do.
As wearable tech developers launch their products into the world, some will be met with more concerns than others, but ultimately, products will improve and the constraints that developers are faced with now may not be a problem in the near future.
All we can do is sit back and wait to see where the wonderful world of wearables will go!
