"In 2014, wearable devices with Wi-Fi support only accounted for 2.9%; however, the share is estimated to reach 21.4% in 2015 at 16 million units," says Yi-Hua Shen, industry analyst with MIC.

Shen pointed that due to size and weight restrictions, battery life has played a key role in wearable devices, so low-power Bluetooth technology has been the major connectivity technology for wearable devices.

For example, while smart watches Moto 360 and Sony SmartWatch 3 have provided Wi-Fi functions, they were not supported by Android Wear system until 2015 when Apple Watch hit the market. With better user experience in mind, Apple Watch has been equipped with Wi-Fi support, allowing users to connect with iPhones when they are not in Bluetooth range.

“Android Wear has thus followed suit to add support for Wi-Fi communications, leading to a growing trend of wearable devices integrating Wi-Fi." Shen Says.

For small- and medium-sized Wi-Fi equipment makers including Taiwanese vendors, they will have more opportunities to expand into the IoT industry—either through independent development or participating in the alliances—to create more innovative products or added value. This will facilitate their business transformation.

Figure 1