ASIA
30 October 2014
Wearable Technology
With the advent of "wearable technology", has the next enterprise game changer arrived, asks Frost & Sullivan?
With the advent of "wearable technology", has the next enterprise game changer arrived, asks Frost & Sullivan?
The latest disruptive technology to command attention, ignite imagination and serve as a harbinger of both hope and danger is wearable technology. It offers unique attributes and myriad applications in a wide range of industries, and offers a platform for continued innovation.
Frost & Sullivan’s latest report on wearables titled “Wearable Technology – Has the next enterprise game changer arrived?” throws light on the state of this emerging technology and its potential impact on enterprises.
According to Arvind Arun, Industry Analyst in the ICT Practice at Frost & Sullivan, the market for wearables in APAC is currently worth USD 8.5 billion and is expected to grow to USD 37 billion over the next 5 years at a CAGR of around 34%. The report states that the uptake of wearables in enterprises will happen at a much faster rate with volume shipments poised to grow at a CAGR of around 75% in the period 2014-2018.
The three most important drivers, propelling the market forward, according to the report are, firstly, the explosion of the IoT ecosystem and the potential of wearables to act as the gateway to the IoT world. Secondly, the ability of wearables to provide contextual computing capabilities that opens up new avenues of growth and possibilities.
Finally, several disruptive attributes of wearables that empower the wearer with enhanced capabilities. These include:
Cognizance -- The ability to track our daily activity, be it at home, at work or while playing, will provide us with insights into our lives, and will lead to behavioural changes.
Non-intrusive -- Wearables will become an unobtrusive access point and information gateway, allowing wearers to work with both hands while remaining connected at all times.
Cybord -- Wearables will become the natural extension of the physical body and would thus become unique to each individual. Hence, wearables will become the ultimate authentication device and the human body will become the password of the future.
Re-defined reality -- The most unique and disruptive feature of wearables is the ability to introduce a digital layer over the physical world we inhabit. The superposition of the virtual world over the real world will change the way we perceive, experience and engage with reality.
Sixth sense. Owing to their ability to analyze vast amounts of ambient data, wearables could empower humans with the "sixth sense" by seeing, smelling, hearing and feeling the surroundings of the wearer and deducing valuable insights from the data collected.
But the growth drivers notwithstanding, Arun is quick to add that the industry must address some serious challenges to fully realize the potential and promise of wearable technology. These include technical challenges such as battery life, versatility and robustness of sensors, and interoperability between various devices and platforms. Additionally, providing impetus to the app developer community and wearable data management are important obstacles that need to be overcome.
Speaking about the disruptive potential of wearables, Arun remarked “Wearables could seriously challenge the status quo in several industries and could substantially enhance process efficiency, customer experience and worker safety in hazardous work environments.”
“Like all disruptive technologies”, Arun added, “Wearables will immensely benefit certain industries such as Healthcare which is likely to see a sharp increase in prophylactic therapy and preventive medicine. On the other hand, wearables will increase the practice of “showrooming”, which could put additional stress on traditional retailers. Also, wearables could serve as an alternative to credit and debit cards and hence may further disrupt the payment industry”.
To cut a long story short, wearable technology has arrived and regardless of the size of your organization, the industry you operate in and the nature of your customer(s), wearables will change the way you work, compete and deliver value in the market place.
And, as with all disruptive innovations, the early movers will thrive while the laggards will struggle to survive.
Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
· The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
· The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
The latest disruptive technology to command attention, ignite imagination and serve as a harbinger of both hope and danger is wearable technology. It offers unique attributes and myriad applications in a wide range of industries, and offers a platform for continued innovation.
Frost & Sullivan’s latest report on wearables titled “Wearable Technology – Has the next enterprise game changer arrived?” throws light on the state of this emerging technology and its potential impact on enterprises.
According to Arvind Arun, Industry Analyst in the ICT Practice at Frost & Sullivan, the market for wearables in APAC is currently worth USD 8.5 billion and is expected to grow to USD 37 billion over the next 5 years at a CAGR of around 34%. The report states that the uptake of wearables in enterprises will happen at a much faster rate with volume shipments poised to grow at a CAGR of around 75% in the period 2014-2018.
The three most important drivers, propelling the market forward, according to the report are, firstly, the explosion of the IoT ecosystem and the potential of wearables to act as the gateway to the IoT world. Secondly, the ability of wearables to provide contextual computing capabilities that opens up new avenues of growth and possibilities.
Finally, several disruptive attributes of wearables that empower the wearer with enhanced capabilities. These include:
Cognizance -- The ability to track our daily activity, be it at home, at work or while playing, will provide us with insights into our lives, and will lead to behavioural changes.
Non-intrusive -- Wearables will become an unobtrusive access point and information gateway, allowing wearers to work with both hands while remaining connected at all times.
Cybord -- Wearables will become the natural extension of the physical body and would thus become unique to each individual. Hence, wearables will become the ultimate authentication device and the human body will become the password of the future.
Re-defined reality -- The most unique and disruptive feature of wearables is the ability to introduce a digital layer over the physical world we inhabit. The superposition of the virtual world over the real world will change the way we perceive, experience and engage with reality.
Sixth sense. Owing to their ability to analyze vast amounts of ambient data, wearables could empower humans with the "sixth sense" by seeing, smelling, hearing and feeling the surroundings of the wearer and deducing valuable insights from the data collected.
But the growth drivers notwithstanding, Arun is quick to add that the industry must address some serious challenges to fully realize the potential and promise of wearable technology. These include technical challenges such as battery life, versatility and robustness of sensors, and interoperability between various devices and platforms. Additionally, providing impetus to the app developer community and wearable data management are important obstacles that need to be overcome.
Speaking about the disruptive potential of wearables, Arun remarked “Wearables could seriously challenge the status quo in several industries and could substantially enhance process efficiency, customer experience and worker safety in hazardous work environments.”
“Like all disruptive technologies”, Arun added, “Wearables will immensely benefit certain industries such as Healthcare which is likely to see a sharp increase in prophylactic therapy and preventive medicine. On the other hand, wearables will increase the practice of “showrooming”, which could put additional stress on traditional retailers. Also, wearables could serve as an alternative to credit and debit cards and hence may further disrupt the payment industry”.
To cut a long story short, wearable technology has arrived and regardless of the size of your organization, the industry you operate in and the nature of your customer(s), wearables will change the way you work, compete and deliver value in the market place.
And, as with all disruptive innovations, the early movers will thrive while the laggards will struggle to survive.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
· The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
· The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?