AUSTIN, TX -- Strong market growth is predicted for wearable electronics fueled by new generations of wearables providing greater functionality in the same or smaller form factor, for the same or lower cost.

While improvements in IC technologies and software continue to make wearables smarter, advancements in assembly and packaging allow OEMs to meet small form factor, low-power consumption, and low-cost requirements.

That's the finding from a new report by TechSearch International. The 34-page "Advanced Packaging Update" provides an analysis of trends in wearable electronics and package adoption not only for smartwatches and activity trackers, but also for VR and AR headsets, body cameras, and wireless multi-function earbuds.

The report also contains an updated forecast for FO-WLP in packages and reconstituted wafers, based on new plans for package adoption, as well as new battery technology developments.

One common theme emerging from TechSearch’s interviews is that, for a wearable to succeed in the marketplace, it must simplify tasks for its user, not complicate them. That requires greater intelligence from both hardware and software. The high degree of functionality in today’s wearables has been made possible by advanced assembly and packaging technologies, use of wafer-level packages (WLPs) in particular.

Health, sports, and fitness monitoring are driving the wearables market. Basic requirements for activity trackers and smartwatches are: user friendly, comfortable, secure; always on and monitoring; ubiquitous connectivity; durability; and low cost for consumers. The trend in fitness bands and smartwatches is a growing number and variety of sensors.

Many different IC and package types are found in wearable electronics. A typical product contains a microcontroller, a power management device, memory, and a connectivity device (i.e., Wi-Fi or Bluetooth). Wearables also contain MEMS sensors such as accelerometers, gyroscopes, pressure sensors, and compasses, and sometimes sensors for monitoring pulse and blood oxygen saturation, ambient light, and temperature. Packages found in these products include FBGAs, FLGAs, QFNs, stacked die CSPs, WLPs, and system-in-package (SiP). Expanding use of fan-out WLP (FO-WLP) is likely to support form factor, high I/O density, and performance requirements.