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Overview of the global wearable payment market
Technavio’s market research analyst predicts the global wearable payment market to grow at an impressive CAGR of more than 59% between 2016 and 2020. Mobile payment through wearable devices is the latest trend in the payment industry. Wearable payment is gaining huge traction in both developed and developing countries owing to the convenience offered by wearable devices to make contactless payments. The increased penetration of wearable devices has also prompted several companies to install NFC POS terminals in their stores so that customers can make contactless payments. Moreover, the decreasing costs of NFC technology and the growth of the NFC ecosystem that supports diverse NFC applications have compelled vendors to integrate NFC technology into wearable devices, which, in turn, will further drive the growth of the global wearable payment market during the forecast period.
The emergence of host card emulation (HCE) is one of the latest developments in this market. HCE is an on-device technology that allows wearable or mobile devices to perform card emulation on an NFC-enabled device without depending on access to a secure element. Technavio expects that HCE will gain immense popularity over the forecast period as it is likely to be widely adopted by banks and some leading over-the-top players for NFC payments. The UK’s Barclays Bank is one of the most popular institutions to utilize this advanced technology.
Competitive landscape and key vendors
Characterized by the presence of numerous players, the global wearable payment market is highly competitive in nature. Apple, Jawbone, Google, MasterCard, Samsung Electronics, and Visa are the leading vendors in the market. These vendors contend in terms of the availability of apps, product differentiation, digital content, portfolio, and pricing. Constant innovations in product portfolios will further intensify the level of competition in this market in the coming years. To sustain themselves in the market, vendors are making investments in planning, designing, developing, acquiring new players, and extending their existing facilities.
Leading vendors in the market are -
- Samsung Electronics
Other prominent vendors in the wearable payment market include Alibaba Group, American Express, Barclays, Broadcom, Fitbit, Gemalto, Infineon Technologies, Inside Secure, MediaTek, Microsoft, NXP Semiconductors, Qualcomm, PayPal, Renesas Electronics, Sony, and Xiaomi.
Segmentation by device and analysis of the wearable payment market
- Fitness bands
In 2015, the smartwatch segment dominated the global wearable payment market. The adoption rate of smartwatches is likely to increase during the forecast period with several vendors launching low-priced smartwatches. Smartwatches are connected to smartphones through NFC, RF, or Bluetooth. The increasing shipment and revenue generated from the sales of smartphone compatible smartwatches will be a major factor driving this market’s growth. Major companies like Apple and Samsung Electronics are including components such as Bluetooth connect in phones so that users can use their smartwatches more efficiently. Recently, Samsung has launched Galaxy Gear S3, which contains a built-in NFC chip to provide users with hassle-free payment options.
Geographical segmentation and analysis of the wearable payment market
APAC will be the fastest-growing region in the wearable payment market over the forecast period. The adoption rate of smartwatches in the region will increase significantly as major China-based companies such as HTC and Huawei Technologies are focusing on the development of smartwatches that are reasonable for the larger audience. Moreover, an increase in product proliferation in countries like Japan, Singapore, and India will also result in the massive growth of the market in APAC. The growth of the wearable device market in China and India will likely boost the growth of the wearable payment market in the region during the forecast period.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global wearable payment market?
- What are the key market trends impacting the growth of the global wearable payment market?
- What are the challenges to market growth?
- Who are the key vendors in the global wearable payment market?
- What are the market opportunities and threats faced by the vendors in the global wearable payment market?
- Trending factors influencing the market shares of the Americas, APAC, and EMEA.
- What are the key outcomes of the five forces analysis of the global wearable payment market?
Technavio also offers customization on reports based on specific client requirement.