Smartwatch market set for five-year boom

The smartwatch frenzy has just started and is expected to continue to boom in the next five years.

According to a new analyst report by research firm IHS Technology, the 3.6 million smartwatch shipments in 2014 will grow to 101 million in 2020.

Additionally, the report said that the smartwatch to smartphone shipment ratio will narrow down from the current 1:500 to 1:20 in 2020.

The smartwatch will become a key accessory device offered by most leading smartphone manufacturer, IHS analyst Antonios Marouli said.

The huge driver for its sales will be the availability of a wide range of apps. "Apple's and Google's success with existing smartphone application stores will give them an invaluable head start over challengers,"Marouli adds.

While Apple's marketing efforts will push for consumer awareness, its higher price value will give a huge market for other lower-priced wearable makers.

However, while other proprietary OS platforms will find short-term successes, standard platforms that are supported by most hardware will still dominate - which will most likely be Apple and Google.

IHS cites that Apple watch sales are expected to hit 19 million this year alone. And in terms of Android wear adoption, 96 million units are expected to be sold in the next five years