Sponsored by Seiko (Japan), smartwatches have been around for about three decades. Early versions of smartwatches allowed the user to input data, view different time zones, and perform basic calculations. The next generation of these devices incorporated GPS and a host of other wireless sensor features, including a thermometer, compass, altimeter, barometer, camera, and accelerometer. Various combinations of these features were developed to appeal to a specific set of consumers.

However, it seems that these types of personal devices are running out of fuel to attract consumers. The reason for this is the continuous outbreak of smart wearable devices, mainly smartphones and tablets. Now that a large number of electronic devices can be miniaturized, watch manufacturers are tempted to transform personal watches into portable computing devices.

Various smartphone features can be made compatible so that they can be offered in the next generation of personal devices. Companies like Pebble and WIMM One (now part of Google) have already made a name for themselves by introducing devices that can communicate with a user’s phone via the Bluetooth option. The ability to notify the user of an incoming call and display SMS directly on the watch face are touted as favorable features.

The next logical step will be to incorporate some kind of transparent screen through which a user can scan a product to receive real-time information. Pedestrian navigation can also lead the way in absorbing augmented reality features. In this context, Google has already filed a patent for a transparent flip cover to achieve such a feat. However, there is currently no certainty about the commercial availability of such a device.

So what is really on offer now?

At the moment, tech companies are finding value in introducing smartphone-connected watches. There were three notable launches in 2013, including the Samsung Galaxy Gear, the Sony SmartWatch, and the Qualcomm Toq.

The startup space will also be equally important to consider, given the existence of crowdfunding platforms, such as Kickstarter and Indiegogo. While PH Technical Labs (funded via Kickstarter) is set to launch its HOT watch, Kreyos (funded via Indiegogo) will launch its Meteor brand of smartwatch, both during the first half of 2014. Gesture control features, receiving and rejecting calls, sending SMS and receiving notifications in real time are becoming standard functions for this type of interactive device.

So how competitive is the market and can the product be mass produced?

In fact, the global market has already become so highly competitive that companies like MetaWatch are taking the time to launch their Meta smartwatch in the second half of 2014. By then, the company will be sure to gain a competitive edge over its peers. by going beyond plastic bodies and offering a double hinged leather strap design.

Price pressure will also drive innovative efforts in this space to create novel features in a watch. Larger companies such as Samsung, Google and Apple are also expected to use their mass marketing potential to offer products at competitive prices in a market where a consumer can buy an interactive device in the $150 to $300 range.

On the other hand, the race to commercialize an interactive device with unique functions is imminent as the combined efforts of manufacturers from all over the world indicate the fact that millions of smart watches are expected to be sold worldwide by 2014. Therefore, these devices are likely to follow the lead of smartphones and can be expected to become a complementary option for tech-savvy individuals seeking portability and convenience in their personal devices.