Today, people are indulging in sports and entertainment activities more than ever. They are looking for new ways to capture their experiences, apart from the handheld camera. A wearable camera provides them the perfect option to capture videos on the go. It also provides a first-person view of the experiences. Currently, the sports and media industry accounts for more than half the demand for wearable cameras. Additionally, value-added product features such as instant media sharing, and customization of settings related to widgets and transfer medium will result in high demand for wearable camera from the media and entertainment industry. Our procurement market intelligence report on the global wearable camera market anticipates the market to grow at an impressive rate of 16.95% for the next couple of years.
North America currently accounts for the highest spend in the wearable camera market and is closely followed by the European region. APAC and South America are the fastest growing markets in this sector. Much of this growth can be attributed to the robust growth in major end-user industries such as tourism and media, strengthening of regulatory frameworks with respect to the ease of doing business for global suppliers, and increasing investments by global and regional suppliers.
Prices of wearable cameras are expected to decline moderately during the forecast period due to the growth of regional suppliers in the APAC region. Regional suppliers in the APAC region are likely to offer wearable cameras at a lower price compared with their global counterparts due to factors such as low raw material and labor costs. This, in turn, intensifies the price competition in the market. Additionally, the spend of suppliers on R&D is on a rise to deliver products with high data security and enhanced ease of use with additional features. However, it is estimated to moderately impact the prices of wearable cameras.
The manufacturing of wearable camera includes procuring raw material costs including components such as transistors, capacitors, PCB, sensors, and materials, including plastics. The costs of such materials are expected to increase at a CAGR of 4%-5% by 2022 due to the growing focus of suppliers on customization of components to attain end-product differentiation. Apart from raw materials cost, manufacturers have to consider other cost aspects including R&D, labor, administrative, channel costs, logistics, and manufacturing costs.
Factors impacting pricing
Suppliers in the wearable camera market are increasingly focusing on developing lightweight and miniature wearable cameras with high image stability. This increases the R&D costs of suppliers, which, in turn, raises the final cost of end-products. Additionally, suppliers are increasing their R&D spend to design products with enhanced durability and multiple API architecture support to enhance customization ability at buyers’ end, which subsequently increases the R&D costs.
Cost saving opportunities
Although raw material and labor costs are on a rise, there are few cost-saving opportunities that exist in this market. Collaborating with component providers to attain differentiation in design and operational features looks to be one obvious route to save on costs. These suppliers enter into agreements with their component vendors, which helps in developing new products to attain the USP of end-product in the market.
Read more about the pricing landscape in the wearable camera market along with procurement best practices, supply market insights, pricing insights, and market challenges in SpendEdge’s upcoming report on the global wearable camera market.