Markets should prepare themselves for an "upgrade wave" due to the huge potential of wearable technology, Ultra High Definition (UHD) TV and the acceleration of innovative automobiles, according to investment banking firm Numis.
In the wake of the annual Consumer Electronics Show a host of new technologies are preparing to burst onto the scene innovating in travel, recreation and health. The note from Numis highlights three key areas it says are set for a bounce and one that is preparing for stagnation.
Wearable technology is set to be targeted initially at specific groups of consumers who are easily accessible through social media. Wearables start with the advantage of a wide and growing pool of smartphone users.
Soon smart watches, glasses and other accessories may integrated into our daily lives as much as mobiles. There has already been strong interest in wearable wristbands such as Nike Fuelband which can help to track your daily activity, calorie burn, heartrate, sleep, and diet.
UHD TV was a popular showing at CES and is set to take off in 2014. Numis is forecasting that UHD TV sets should be available at accessible (albeit high end) price points by the end of 2014. The company believe UHD TV will prove a stark contrast to the poorly received 3DTV in 2010/11.
"We believe that consumers will react very favourably to the highly immersive experience and that the timing is right to spur an upgrade wave," the note said.
Innovation in the auto industry is also moving up a gear. The future of the automotive industry could see multiple cameras, heads-up displays, vehicle to vehicle communications and self driving cars.
Recently Google has announced a new partnership with car manufacturers Honda, Hyundai and Audi to customise its operating system for their vehicles. The Android system would allow apps and music from Android devices to be integrated with onboard car systems. This would be powered by Nvidia chips, for its multimedia platforms.
Less emphasis on smartphones
CES 2014 saw a marked decline in the emphasis on smartphones save for the odd exception such as the Yellow Jacket iPhone stun gun case. Numis believe this is in indicator of the limited growth potential in the smartphone market.
However, tablets may have better prospects for new innovation and growth. Numis warns that while Apple retains a strong grip on the upper echelons of the tablet market competitors are likely to see low margins at the battling it out at the lower end.