One of the biggest threats that traditional horology faces today is from luxury wearable technology. While beautifully crafted traditional watches will continue to be an important part in the luxury segment, increasingly, wearable technology will make a place for itself in the segment.

Right now, the only wearable technology available in the market is the Google Glass. However, Apple is rumored to be launching an iWatch. Many watch companies are looking at joining forces with brands like Apple, Google and Microsoft to make the watch of the digital future. The collaboration will help bring together the watchmaker’s skills and the technology available with these IT giants.

While smart watches are unlikely to harm the traditional watches segment drastically, going the smart watches way will definitely help traditional watchmakers to focus on the future of watches, which looks digital. The Digital Luxury Group’s 2014 report discovered that watch collectors are interested in the 18 brands, like Patek Phillipe, Chopard, Vacheron Constantin and Cartier, found in the Haute Horlogerie category, which has seen a 12 percent growth. However, the report also estimates that 45 million smart watches are expected to ship by 2017, which reveals the growing interest in luxury smart watches.

Several innovations will drive the smart watch segment. Someday, for instance, you may be able to charge your smartphone with your clothes. Flexible solar panels have inspired designers to come up with clothes and accessories that can power electronics.

Start-up company Wearable Solar is using the technology to make lightweight wired garments that will enable the wearer to charge a smartphone up to 50 percent if worn in the sun for a full hour.

Besides, a smart phone, in the future, may work as your personal purifier – when worn the on wrist, a watch conceptualized by designer Alexandr Kostin, called the Hand Tree, will be able to suck up and filter polluted air.

Traditional watchmakers like Swatch are already looking at the smart watches segment to grow in the future and the Swiss watchmakers are seriously looking at the segment.