App-enabled smart watch shipments are set to reach 36 million per annum by 2018, according to new findings from Juniper Research.

Juniper's latest report, ‘Next Generation Smart Watches: Market Prospects 2013-2018' contends that the entrance of Apple and Samsung into this sector – as suggested by recent trademarks and patents – will help to validate the category and act as a catalyst for other competitors to enter the space.

The new report found that shipments of smart watches will be driven by a new Multi-function segment capable of performing an array of additional functionalities such as tracking fitness and sports activities, payments or ticketing compared to the more limited Dashboard/Console segment.

The Multi-function segment will be propelled by the emergence of players such as Apple and Samsung.

“By educating and publicising this device segment to the consumer, Apple and Samsung will indeed act as a catalyst to the market," says Nitin Bhas, report author, Juniper Research.

"In addition, being a key influencer, these player's entry into the smart watch segment will benefit existing smart watch players – providing an increase in awareness and adoption of other wearable devices."

The report noted however that both smart watch categories – Dashboard/Console and Multi-function – will only appeal to a niche demographic when compared to tablet and smartphone for example and hence the market potential will be comparatively limited.