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Global Wearable Payment Market 2016-2020

About Wearable Payment

Wearable payment refers to transactions between wearable devices and contactless payment terminals like NFC. NFC is a standard-based short-range (about 10 cm) connectivity that uses high-frequency wireless communication technology. This technology enables peer-to-peer communication between two devices, by bringing them in close proximity. End-users use this technology to transfer information from their devices to contactless payment terminals such as smartphones and NFC tags. The technology involves a direct transfer of data between wearable devices and POS devices.

Technavio’s analysts forecast the global wearable payment market to grow at a CAGR of 59.44% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the global wearable payment market for 2016-2020. To calculate the market size, the report provides a detailed forecast of the market transaction revenue and shipment of wearable payment devices.

The market is divided into the following segments based on geography:

  • Americas
  • APAC
  • EMEA
Technavio's report, Global Wearable Payment Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • Apple
  • Jawbone
  • Google
  • MasterCard
  • Samsung Electronics
  • Visa
Other prominent vendors
  • Alibaba Group
  • American Express
  • Barclays
  • Broadcom
  • Fitbit
  • Gemalto
  • Infineon Technologies
  • Inside Secure
  • MediaTek
  • Microsoft
  • NXP Semiconductors
  • Qualcomm
  • PayPal
  • Renesas Electronics
  • Sony
  • Xiaomi
Market driver
  • Growing adoption of contactless payments.
  • For a full, detailed list, view our report
Market challenge
  • Lack of interoperability of NFC technology.
  • For a full, detailed list, view our report
Market trend
  • Rising adoption of contactless payments in APAC and Africa.
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

Technavio Announces the Publication of its Research Report – Global Wearable Payment Market 2016-2020

Technavio recognizes the following companies as the key players in the global wearable payment market: Apple, Jawbone, Google, MasterCard, Samsung Electronics, and Visa.

Other prominent vendors in the market are: Alibaba Group, American Express, Barclays, Broadcom, Fitbit, Gemalto, Infineon Technologies, Inside Secure, MediaTek, Microsoft, NXP Semiconductors, Qualcomm, PayPal, Renesas Electronics, Sony, and Xiaomi.

Commenting on the report, an analyst from Technavio’s team said: “One of latest trends in the market is decline in cost of wearable devices. Smartwatch, which is one of the latest technologically advanced fashionable accessories, has high growth prospects but is expensive for budget-conscious people. The ASP of smartwatches declined from $299-$350 in 2014 to $150-$199 in 2015. Most of the wearable device manufacturers reduced the ASP of devices to make products more affordable for users and to increase sales volumes. The price was also reduced to attract a larger target consumer segment and to sustain in the competitive market. The competition in the market is increasing with the entry of several start-ups and technology companies in the market. Every half year, companies are launching newer versions of the existing products. Manufacturers reduce the costs of the existing versions to ensure that they are sold and to allow the entry of newer versions of products. We expect the prices of smartwatches and fitness bands to decline over the next few years, making them more affordable for end-users.”

According to the report, one of the primary drivers in the market is declining cost of NFC technology. The global wearable payment market is driven by the declining cost of NFC technology. The technology has become more affordable for device manufacturers that integrate the technology into wearable devices. In addition, as the number of vendors offering wearable devices is increasing, it is likely to support the growth of the wearable payment in the coming years. The declining price of NFC technology and the growth of the NFC ecosystem that supports various NFC applications have encouraged vendors to integrate NFC technology into wearable devices. Jawbone launched the fitness device UP4, which is integrated with payment technology. This will likely encourage more people to adopt NFC-enabled wearable devices, which will in turn, drive the growth of the global wearable payment market during the forecast period.

Further, the report states that one major challenge in the market is high price of smartwatches. The high price of wearable devices, especially smartwatches, is a factor hindering their adoption. High-end smartwatches such as Apple Watch accounted for more than 85% of the global smartwatch market in 2015. Though the demand for wearable devices is expected to increase during the forecast period, the willingness of customers to invest in smartwatches is comparatively low. In addition, the limited battery life in smartwatches is expected to act as a major limitation for the market growth. The ASP of wristbands is expected to decline during the forecast period because of evolving technologies and growing competition between wrist wearable manufacturers in the market. The market shows the presence of many high-end manufacturers that offer smartwatches at premium prices. New and small players are increasing their R&D investments to develop smartwatches that are more economical. This will likely reduce the prices of smartwatches during the forecast period.

Companies Mentioned

Apple, Jawbone, Google, MasterCard, Samsung Electronics, Visa, Alibaba Group, American Express, Barclays, Broadcom, Fitbit, Gemalto, Infineon Technologies, Inside Secure, MediaTek, Microsoft, NXP Semiconductors, Qualcomm, PayPal, Renesas Electronics, Sony, Xiaomi.

  • Executive summary
    • Highlights
  • Scope of the report
    • Market overview
      • Table Key regions in global wearable payment market
    • End-user segment
    • Base year and forecast period
    • Vendor selection criteria
    • Summation error
    • Top-vendor offerings
      • Table Product offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
  • Market landscape
    • Market overview
      • Table Overview of global wearable payment market
    • Product life cycle
      • Table Product life cycle of wearable payment 2015 and 2020
    • Contactless payment transaction system
      • Table Contactless payment ecosystem
    • Global wearable payment market
      • Table Global wearable payment market 2015-2020 ($ billions)
      • Table Global wearable payment device market 2015-2020 (millions of units)
    • Five forces analysis
      • Table Five forces analysis
  • Market segmentation by device
    • Global wearable payment market by device
      • Table Global wearable payment market by device 2015-2020 (% share)
      • Table Revenue comparison of global wearable payment market by device 2015-2020 ($ billions)
      • Table CAGR comparison of global wearable payment market by device 2015-2020
    • Global smartwatch payment market
      • Table Global smartwatch payment market 2015-2020 ($ billions)
    • Global fitness band payment market
      • Table Global fitness band payment market 2015-2020 ($ billions)
  • Buying criteria
    • Table Buying criteria for wearable payment
  • Geographical segmentation
    • Global wearable payment market by geography
      • Table Global wearable payment market by geography 2015-2020 (% share)
      • Table Revenue comparison of global wearable payment market by geography 2015-2020 ($ billions)
      • Table CAGR comparison of global wearable payment market by geography 2015-2020
    • Wearable payment market in Americas
      • Table Wearable payment market in Americas 2015-2020 ($ billions)
    • Wearable payment market in EMEA
      • Table Wearable payment market in EMEA 2015-2020 ($ billions)
    • Wearable payment market in APAC
      • Table Wearable payment market in APAC 2015-2020 ($ billions)
  • Market attractiveness
    • Market attractiveness by device
      • Table Market attractiveness by device
    • Market attractiveness by geography
      • Table Market attractiveness by geography
  • Key leading country
    • US
  • Market drivers
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Table Global contactless payment market by mobile devices 2015-2020 ($ billions)
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
  • Vendor landscape
    • Competitive scenario
    • Key leading vendors
    • Other prominent vendors
      • Table Other prominent vendors
  • Appendix
    • List of abbreviations
  • Explore Technavio

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