Appcessories: How ready is the ecosystem?
In many respects the market for smart wireless accessories resembles the early days of smartphones. Certain glimpses of what is possible are evident in existing applications, but the true potential may only emerge as the market develops and builds on from what is possible now. Although the awareness of specific technologies such as augmented reality, for example, is low amongst consumers, the emergence of wearables and wireless accessories will improve this. App-enabled smart wireless accessories or ‘appcessories’ could create possibilities hardly imaginable at present; recently, a surgeon in Ohio live streamed a surgery via Google Glass, demonstrating the potential use cases and applications. However, for such devices to further develop and create successful business models for stakeholders, the development of a robust mobile and peripheral ecosystem is critical. As we note in our recent research, several business models exist within the smart wireless accessories market, defined to some extent by the segments to which they belong. The development of a robust environment for the creation of peripheral based business models will affect how revenue is generated within the market along with technology standards and regulations playing their part, especially with regard to payments and healthcare. The wireless accessory ecosystem is still developing and will evolve over the next five years to become a reality for a much broader audience. Juniper forecasts app-enabled smart wireless accessories to generate hardware and service revenues of over $23 billion by 2018.