According to Business Insider wearable devices are to see "plenty of growth" in the long run-- global shipments should reach 148 million by 2019, growing at a CAGR of 35% from 2015 shipments of 33m units.
Currently short term wearable growth faces a number of hurdles. The main ones are the need to connect to another mobile device for most functionality and customers not knowing the benefits of wearable devices, although one can also points out (still) too high pricing, lack of functionality, arguably unattractive styles, limited battery lives, small displays and a lack of an adoption-driving killer app.
That said, wearables already got a kickstart in the shape of the Apple Watch. BI says the Watch accounts for 40% of 2015 of smartwatch shipments, and should reach a peak 48% share in 2017. The smartwatch category should take an increasingly large share of the overall wearable market, accounting for 59% of 2015 wearable shipments, a share the analyst forecasts will grow to over 70% by 2019.
Perhaps unsurprisingly smartwatches will mirror the mobile device Apple-Google wars, as the Watch and Android Wear platforms should attract most customers.
In the meantime fitness bands and other "miscellaneous" wearables (such as smart glasses) will cater to increasingly niche audiences. As a result BI forecasts fitness band wearable share will contract to 20% in 2019, down from 36% in 2015, even if the market will see "some blur" between fitness bands and smartwatches.