Wearable Computer Market To Grow 500% By 2006

A recently completed research report on the global wearable computer market predicts growth over the coming three years from $100 million in 2002 to over $563 million in 2006. The study, by Venture Development Corp. (VDC), is titled The Global Market for Wearable Computers: The Quest for Killer Applications and is based on inputs from more than 500 respondents.

Preliminary findings announced last August included . . .

#  Global shipments of wearable computers will reach over $100 million in 2002 and grow to over $563 million in 2006. Driving this growth will be the expanding use of wearable computers in vertical markets and applications in which tangible ROI, cost savings, and improved customer satisfaction prove the benefits derived via "hands free" computing and real-time access to information.

#  The emergence of "smart fabrics" or interactive textile wearable products will lead to a viable market by 2006, comprised of users in markets such as military, medical, public safety, sports, and outdoor activities. VDC expects a growing number of users will desire the true wearability that clothing based computers will provide as well as obtaining vital information through bio-monitoring.

#  Based on an extensive on-line web survey and phone interviews with 471 people, VDC determined that there is strong future demand for wearable computers providing various functional performance capabilities, including PC functionality, data-collection, PDA and Internet functionality, and bio-monitoring. Consumer applications are expected to experience significant demand as 1st generation wearable products are improved and greater functionality and performance is provided in the future.

Recently released results from the study include . . .

#  Nearly 60% of survey respondents had a firm understanding of wearable computing. This included knowledge of: form factors, basic performance and price levels, and some of the largest suppliers. Approximately 1 in 4 respondents stated that their level of understanding of wearable computing was 'strong' or 'very strong'.
#  The most often cited expected benefits -- or performance goals -- for installations of wearable computers, ranked in descending order of frequency, included:

1. Improve employee/operator productivity
2. Manage personal schedules
3. Increase profitability in core operations/business
4. Enhance customer satisfaction
5. Create more free time and enhance value of experience in during that time
6. Enable easier, more reliable real time access to people and information

These benefits are reflected in the wearable computing product selection criteria most often cited as key influencers in the decision making process.
 
#  Almost every current and potential user of wearable computers, especially those looking to support real-time, wireless datacom and telecom, are 'very concerned' about privacy and security.

#  Nearly half of all survey respondents are 'concerned' with safety issues, such as EMI, RFI and a host of ergonomic issues.