WEARABLE DEVICE MARKET
The previous post, LI-ION BATTERY MARKET: 2015 – 2025 Projections, included a graph from the Avicenne Energy report, “The Worldwide Rechargeable Battery Market.” The graph showed that Li-ion battery use for portable devices is expected to double between 2015 and 2025. An important factor will be the growth of wearable devices.
IDTechEx is an analyst and consulting firm that conducts detailed examinations of emerging technologies based on extensive primary research. IDTechEx reports assess a particular technology or market vertical and appraise the market opportunity with detailed forecasts. The following graph is from the IDTechEx report, “Wearable Technology 2016 – 2026,” published in July 2016.
According to IDTechEx, the market will be worth over $30 billion this year, and it will grow in three stages: a 10% compound annual growth rate (CAGR) to over $40 billion in 2018, accelerating to a 23% CAGR to over $100 billion by 2023, and then slowing to an 11% CAGR to reach over $150 billion by 2026.
IDTechEx defines wearable technology as any electronic products that are designed to be worn on the person. This includes smartwatches, fitness trackers, smart eyewear, smart clothing, medical devices, and other infotainment devices, such as headphones and electronic watches. While this is a very broad array of devices in terms of sophistication, applications and prices, a common factor of many is the need for battery power.
Many analyst firms have noted battery performance as a key to the growth of wearable devices. Lux Research states that short battery life has been repeatedly cited as a big pain point for wearable devices. Credit Suisse Equity Research states that with significantly less volume available to house batteries than tablets and smartphones, better battery performance is critical for wearable devices. And Avicenne Enegry states that in the short-term higher capacity, thinner batteries in pouch cells will have the highest growth.