Wearable tech set for 2017 resurgence

Analyst predicts comeback for wearable tech this year, with the number of devices sold set to beat 2016 by over 16 per cent

The wearable tech market is set for a comeback this year with Garner forecasting that over 310 million devices will be sold worldwide.

The resurgence will lead to growth of 16.7 per cent on last year's figures, generating revenues of $30.5bn (£23.8bn).

The research house predicts $9.3bn will be from smartwatches alone, with significant further growth expected.

"Smartwatches are on pace to achieve the greatest revenue potential among all wearables through 2021, reaching $17.4bn," research director at Gartner Angela McIntyre said.

"The overall ASP of the smartwatch category will drop from $223.25 in 2017 to $214.99 in 2021 as higher volumes lead to slight reductions in manufacturing and component costs. Strong brands such as Apple and Fossil will however keep pricing consistent with price bands of traditional watches."

Gartner highlighted two sub-categories it anticipates will perform well. Childrens' smartwatches - targeted at the two to 13 year-old range (before parents provide them with a smartphone) will represent 30 per cent of total smartwatch unit shipments in 2021.

The other sub-category, which will account for 25 per cent of units sold by 2021, is fashion and traditional watch brands.

In 2015, there was a huge buzz surrounding wearable tech. Analysts were tripping over themselves to make multi-billion dollar forecasts for the developers of fitness trackers and smartwatches. Apple even flaunted a $10,000 gold prestige version of their Apple Watch.

Then came October 2016, when analysts at IDC revealed a sharp decline in the sales of smartwatch tech: shipments had declined by a whopping 51.6 per cent over a year.

Investors in the emerging market are not sure whether 2017 will mark a levelling out to the market's rollercoaster ride.

Despite much of the focus being on smartwatches, it'll actually be Bluetooth headsets that will dominate the market over the next four years. Gartner predicts that sales will increase to 206 million units.

In 2017, 150 million Bluetooth headsets will be sold, an increase of 16.7 per cent from 2016.

This growth will be primarily driven by the elimination of the headphone jack by major smartphone providers.

"By 2021, we assume that almost all premium mobile phones will no longer have the 3.5 mm jack," McIntyre explained.

Meanwhile, head-mounted displays - like Google Glass - will remain in their infancy, accounting for only seven per cent of all wearable devices shipped in 2017.

However, there is longer-term potential for businesses using them for tasks such as equipment repair, inspections and maintenance, and also in warehouses.