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Fitness wearables? growth will pressure smartwatch makers: report

A projected tripling in fitness-related wearable computers by 2018 tied to falling prices and corporate fitness programs will put pressure on makers of smartwatches to respond with fitness features of their own, according to a new report from Juniper Research.

As the devices? capabilities expand, more consumers will adopt fitness wearables, but aesthetically minded consumers will still choose smartwatches over wearables that put function ahead of form, according to the report. The looming competition underscores the opportunities for marketers focusing on consumers seeking to improve their fitness level.

?More complex fitness devices that offer notification functionalities are likely to compete with the simpler smart watches on the market, like the Martian Notifier,? said Nitin Bhas, head of research at Juniper.

?The emergence of standalone functionality in some of these fitness wearables is likely to spur similar functionalities in some smart watches if vendors feel they need to compete directly with these devices.?

Dominant segment
The report, Smart Health & Fitness Wearables: Device Strategies, Trends & Forecasts 2014-2019, found that fitness wearables in-use will almost treble by 2018, compared to an estimated 19 million in-use devices this year.

Juniper expects fitness to remain the dominant wearables segment until that time, driven by intuitive use cases and lower retail prices.

Martian Notifier promotion.

The broader appeal of smart watches means they will be used more frequently in later years.

The diversity of fitness wearables will bring about two classes of fitness device, according to the report: basic trackers, such as the $13 Xiaomi MiBand, which will sell on their value; and more complex devices, such as the Fitbit Surge, Microsoft Band and Samsung Gear Fit, which offer features beyond fitness, such as music control and notifications.

Although the more complex devices will compete with smartwatches, especially those that offer notification functions, such as the MetaWatch M1 and Martian Notifier. However, more aesthetically minded consumers will still choose watches, as fitness-focused devices will prioritize function over form.

The report anticipates that sales of healthcare-focused wearable devices will increase, from wearable electrocardiograms to glucose monitors and insulin pumps.

While they are currently used in areas where self-medication is the norm, capabilities will expand to allow monitoring by healthcare professionals in other areas. This will only happen once questions around regulation are answered, however.

?Potential consumer segment use cases that have seen limited implementation so far and that we expect to gain traction in coming years include corporate wellness programs and health insurance programs where you walk a certain number of steps a week or maintain a certain level of activity and the provider will discount your next premium,? Mr. Bhas said.

?As well as this, we are seeing adoption by consumers looking to make a change in their lifestyle, rather than track an existing fitness regimen. We?re also seeing the price come down for basic tracking capabilities, meaning it?s less of an investment for consumers.?

Casual consumers are more likely to try out a device costing from $35 to $50 than one costing $100 to $150, he said.

Wearable devices have established a foothold in the mobile marketplace in the last two years, leading them to be regarded as the next big thing in consumer electronics.

For now, however, wearables remain niche devices, with few gaining traction with consumers.

Nearing maturity
Fitness has been the first consumer segment to have a large range of devices available, thanks to increasingly cheap motion sensors.

Smart wearable fitness devices have been around since 2006, making fitness the segment in the wearables space that is closest to market maturity.

Martian smartwatches on Web site.

?Healthcare wearables will increase, particularly as healthcare services are already strained and wearables give an opportunity for tracking activities to encourage preventative action, or to advise consumers algorithmically on particular healthcare functions rather than needing to consult a healthcare professional,? Mr. Bhas said.

?We will see this first in areas where self-medication is already the norm ? such as in diabetes tracking and treatment and cardio outpatient heart-rate monitoring ?, although as more devices get regulatory clearance we expect them to be used increasingly in all forms of healthcare record-keeping and treatment.?

Final Take
Michael Barris is staff reporter on Mobile Marketer, New York.