The latest forecasts suggest that the demand for the wrist-worn devices known as "smartwatches" will increase by 900 per cent over the next 12 months.
According to Canalys forecasts, this incredible jump -- the company believes that over 5 million smartwatches will be shipped by the end of 2014 -- will be created by new products from Apple, Google, Microsoft and Samsung, expected to launch over the coming months.
Canalys's figures show that 330,000 smartwatches shipped globally in 2012 and, by the end of 2013, this number will have jumped to 500,000.
The increase is thanks in part to established smartwatch models from Sony and Motorola but mostly thanks to the way in which the Kickstarter-backed Pebble Watch has managed to grab headlines, capture the public's imagination and clock up over 270,000 pre orders ahead of its official retail release.
"Smartwatches will be the most important new product category in consumer electronics since the iPad defined the market for tablets," said Chris Jones, Canalys VP and Principal Analyst. "Software platforms tied to smart watches will also be a tremendous opportunity for developers to write apps in categories such as health and wellness or sports and fitness."
Part of the reason that many companies have such high hopes for the wrist-worn accessories this time around is because the devices have the potential to deliver a host of new features, thanks to the ubiquity of smartphones and supporting apps. Whereas 10 years ago, a smartwatch was literally a phone worn on the wrist, this time around it is a complementary technology or an 'appcessory.'
However, for smartwatches to be more than simply a flash in the pan, the devices are going to have to offer a type of app or a benefit that chimes with consumers and offer it in a sufficiently stylish or fashionable package to appeal to those not affiliated with the geek community.
"An effective smart watch won't just be a second screen for a smart phone. Creating a competent developer platform specifically for the form factor will be an enormous challenge," said Canalys analyst James Wang. "Google and Microsoft must execute more successfully than they have done with their tablet platforms and will have to adapt their business models appropriately."
There is one other problem. Although stories are flying around suggesting that Apple, Microsoft and Google are all developing smartwatches, as of yet there is no conclusive proof that any of these companies has concrete plans to enter the market.
All that is known for certain is that Samsung, LG and Acer have all officially confirmed that they will be releasing smartwatches over the next 12 months and that Intel and Dell have both gone on the record as actively considering devices within that product space.
