Wearable Market to Grow by 376% in 2017 Thanks to AI: Report

Artificial Intelligence (AI)-powered wearables will provide an impetus to the stagnant wearables segment, to make it grow 376 percent annually to reach 60 million units in 2017, a new report said on Friday.

According to the market research firm Counterpoint Research, categories such as 'AI-powered hearables' will be instrumental to drive major growth, with Apple again leading the way to catalyze this trend.

"Wearables have not seen the expected momentum so far because they have struggled on the lines of a stronger human-computer interaction (HCI) which can enable powerful experiences," said Research Associate Parv Sharma said.Also read: Goqii Smartband Review: A Budget Fitness Partner For Newbies

"AI will not only enhance the user experience to drive higher usage of wearables but also will make wearables smarter and intelligent to help us achieve more," he added.

The study pointed out that "hearables" will contribute to 50 per cent of the AI-powered wearables in 2017 and will be the fastest growing category with a growth of over 2,500 percent annually. Apple will have 78 per cent market share in 2017 in AI-based hearables.

Smartwatches with AI will contribute to 42 percent of the market. Activity trackers will witness a growth of 545 per cent and will contribute to four per cent of the market.

Other wearable devices like Head Mounted Displays (HMD) and virtual reality (VR) Headsets will also be integrated with AI in 2017 but will remain a niche market.

"With AI integration in wearables, we are entering 'wearable 2.0' era. Major growth in the segment is driven by the hearable market which includes devices like Apple AirPods, Beats and other innovative products from lesser known brands like Bragi Dash," Counterpoint Analyst Karn Chauhan added.

The growth for this category will be driven by the proliferation of Amazon's Alexa into third party hardware from smartwatches such as Martian and hearables such as ONvocal. Also read: Computer Bots Too Fight Like Humans: ResearchFollow MWC 2017 Full Coverage Here