L2 Founder Scott Galloway said on Bloomberg today that the wearables market is unlikely to live up to its hype. It is now a $3 to $5 billion market, and is expected to grow ten times in the next three to four years. Galloway believes that while wearables will become huge, mobile phones will carry out most of wearable device functions. As for hardware, the hype is similar to 3D printing.
Google Glass highlights the problem with wearables, Galloway added. Nobody wants to wear the device. Tech companies are not good at building things people want to put on their person, which is a different game than convincing people to use software. On the other hand, Fashion companies who are great at making people want to wear accessories, lack capital for such projects.
Galloway said two consumer companies can pull it off, Apple and Nike, the latter which has pulled out of the business. Therefore, the winner would likely be Jawbone, Fitbit or a similar company. See full video here.
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