China’s Wearable Device Market Could Hit $800M by 2017

China’s wearable medical device market was worth 420 million yuan ($68 million) in 2012, and is expected to top 1 billion yuan ($160 million) next year and nearly 5 billion yuan ($810 million) in 2017, reports the Shanghai-based National Business Daily.

In 2012, about 30 million wearable devices were applied in the medical electronic field, up 37 percent from 2011, ABI said.

Wearable devices are the next potential field in consumer electronics after the development of smartphones reconnects with sensing hardware.

Two or three years ago, very few people had heard about wearable devices, but now they are creeping slowly into daily life. In March, three information technology (IT) giants — Intel, Google and Facebook — simultaneously announced investments in the wearable device field. In China, Xiaomi Tech and Tencent Holdings have stepped into the field.

In China, the first contact with wearable devices probably was Apple’s iPod, which had the Nike+ function introduced in 2006. Nike introduced sports shoes with wearable devices, the Air Zoon Moire, opening up a whole new arena for exercisers. In 2010, Google filed patent applications for its smart glasses, while Nike in 2010 introduced Nike+Running, tying Twitter with Facebook to link running with social activities. In China, Nike is cooperating with Weibo and WeChat.

Meanwhile, quite a few Chinese companies have invested in wearable devices. Recently, Xiaomi introduced smart bracelets which can monitor breathing and sleep, while Tencent unveiled its health bracelets. According to estimates, China has more than 10 domestically-produced wearable medical devices in the market, including a smart thermometer, smart wristbands and a smart oximeter.

App software has become an important platform to link to user groups with wearable hardware. Dayima.com has provided value-added medical services through cooperation with hospitals and insurers.

Currently, there are two kinds of wearable device firms venturing into medical care: one is the innovative firm, which attracts venture capital investments but has a slim chance of long-term survival. The other is traditional enterprises, which focus on the industrialization and directional decision on wearable devices and consider whether investments can be profitable.

A business model for wearable devices has yet to be set. Most of the comparatively low-end smart watches and bracelets are priced from less than 100 yuan ($16) to as high as more than 1,000 yuan ($160). Most of the higher-end products are made by technology firms, with the function of bracelets approaching that of smartphones.