App-enabled Wireless Accessories to Generate Revenues of Over $23 Billion by 2018
Revenues from app-enabled smart wireless accessories will exceed $23 billion in 2018, compared to $2 billion this year, according to Juniper Research. The key areas driving this growth will be fitness, health, Consumer Electronics (CE), payments and enterprise devices.
Juniper found that several business models exist within the smart wireless accessories market, defined to some extent by the segments to which they belong.
This revenue growth will be propelled by four key elements:
- An increase in the adoption of the 'software as a service' proposition.
- The development of additional services delivered within the app.
- The emergence of a 'freemium' model in fitness and healthcare wearables.
- The rise of payment transaction revenues.
The development of a robust environment for the creation of peripheral based business models will affect how revenue is generated within the market along with technology standards and regulations playing their part, especially with regard to payments and healthcare accessories.
Report author Nitin Bhas added: "The wireless accessory ecosystem is still developing and will evolve over the next five years to become a reality for a much broader audience".
Rapid Development Forecast for Payment Accessories
The report notes that while new, as yet undeveloped, use cases will emerge in the consumer electronics market over the forecast period, the business case supporting payment smart wireless accessories is both intuitive and credible.
While this supports the rapid development of payment accessories in the medium term, companies are likely to focus on core markets for the foreseeable future, accounting for the market being skewed towards the US, Europe and Far East where services are currently being offered.