Natick, MA — (press release excerpt) — According to a new market study from Venture Development Corporation (VDC) titled The Global Market for Wearable Computers: The Quest for Killer Applications, worldwide shipments of wearable computers totaled over $70 million in 2001. VDC forecasts the worldwide market will expand at a compound annual growth rate (CAGR) of over 51% through 2006, reaching over… $563 million.

Lead Analyst Tim Shea believes that the potential upside for wearable computing is even more tremendous should certain “best case” scenario assumptions come to pass. “The true potential for wearable computing in 2006 could be well over $1.3 billion, if improvements are made in consumer based products, including commercially viable 'smart fabric' technology. Survey feedback from nearly 500 survey respondents provided compelling possibilities of near-term adoption, assuming that product offerings can meet to user requirements for wearability/comfort, 'hands free operation', and application-specific support,” Shea says.

VDC has identified the key factors driving demand for wearable form factor computers as:

• Offering products that can be shown to provide tangible ROI, cost savings, and improved customer service levels, thereby providing a competitive advantage. Belt worn and wrist worn form factor products comprise the bulk of today's market.
• VDC identified the fastest growing wearable computer types in the future to be wearable computers providing bio-monitoring capability, Internet-centric and PDA-centric functionality. Wearable computers providing PC-centric functionality (spreadsheets, word processing, accessing troubleshooting manuals, etc.) are also expected to experience significant growth as they are designed to serve the broadest base of market segments since they provide multifunctional capabilities.
• Users in select markets are expected to embrace the many benefits offered by the wearable computer's “hands free” mobile solution. The early adopters have been from the distribution/warehousing, transportation, field service, and military market segments. Rapid growth is expected from users in emerging markets such as professional, consumer, education, healthcare/medical, and hospitality.
• Falling prices for core computing components, rapid advancement in enhancements to speech recognition technology and head worn displays are all factors expected to drive growth.
• The emergence of interactive textile or “smart fabric” products is also expected to drive demand. In the near future these smart fabric products will utilize MEMS based technology to integrate a vast array of sensors into everyday products.
• Data-collection leader Symbol Technologies is currently the largest supplier of wearable computers. Other noteworthy players offering and developing wearable computers include a combination of smaller suppliers and some of the biggest brands in computing: Vocollect, Xybernaut, ViA, Voxware, IBM, Hewlett-Packard, Psion Teklogix, and Panasonic. Players such as Hitachi are also entering into the fray by offering its Wearable Internet Appliance (WIA) for consumer and “white collar” applications.

The report, “The Global Market for Wearable Computers: The Quest for Killer Applications”, is published by Venture Development Corporation of Natick, MA. The comprehensive report is available for $5,950.

 
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