Health-Conscious Seen Boosting Wearable Sensor Market

By Elaine Low INVESTOR'S BUSINESS DAILY

Posted 10/16/2014 01:46 PM ET

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As shoppers crave more intricate devices that feature fitness and biometrics trackers — not to mention a host of other functions — sensor shipments are expected to rise seven-fold between 2013-2019, according to market research firm IHS Technology.

The sensor market is seen growing to 466 million units five years from now, up from 67 million last year, as the average wearable will require about three times as many sensor elements.

Previously, health trackers like Jawbone, FitBit and the Nike (NYSE:NKE FuelBand dominated wearables. But tech firms such as Intel (NASDAQ:INTC have been actively keeping up, with the chip giant offering a half- a million dollar

Wearable sensor shipments are seen rising seven-fold between 2013-2019, said IHS Technology, as consumers want devices that can track fitness and...

Intel has also partnered with the fashion set, like Opening Ceremony and Fossil (NASDAQ:FOSL to create more stylish choices.

And Apple (NASDAQ:AAPL) fans are eagerly awaiting the spring debut of the Apple Watch, which not only will have fitness sensors but e-payment and messaging capabilities.

Wearable sensor shipments for smartwatches are expected to skyrocket by 600% as Apple's smartwatch hits the market next year, said IHS.

The global boost in wearable tech may come even sooner than 2019, with about 4.7 million U.K. consumers seen owning a wearable by the end of the holiday season and about 6.1 million people seen owning a wearable in the next year, according to a YouGov study, up from the current 2.8 million device owners.

IHS projects 135 million wearables globally in 2019, up from 50 million in 2013.

And as shoppers want more multifunctional usage, the devices themselves will become increasingly complex and require multiple sensor elements.

"The main factor propelling this phenomenon is a transition in market share away from simple products like pedometers and toward more sophisticated multipurpose devices such as smartwatches and smartglasses," IHS analyst Jérémie Bouchaud said in a statement.

"Instead of using a single sensor like the simpler devices, the more complex products employ numerous components for health and activity monitoring, as well as for their more advanced user interfaces."

Motion sensors dominate wearable tech, said IHS, but other sensor types include microelectromechanical systems for user interfaces, environmental sensors that track weather conditions, and health sensors that can track metrics such as skin temperature and hydration.

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