In Struggling Tablet Market, Rugged Devices Still Going Strong

As global tablet sales stalled over the last year, players in the rugged tablet market said they are still seeing solid growth.

Rugged tablet devices, which are immune to dust, liquids and other harsh environmental conditions, are popular among niche clients in vertical markets like manufacturing.

Market research firm VDC recently released results of its quarterly device tracker, showing that rugged tablet sales grew 17.5 percent in 2014, with especially strong growth in the fourth quarter of 2014.

[Related: Review: Xplore RangerX Rugged Android Tablet Is Out Of This World]

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These results are a stark contrast to the overall tablet market, which, according to market research firm IDC, saw a 3.2 percent year-over-year decline in the fourth quarter of 2014 and a sluggish 4 percent growth overall in 2014.

Rugged tablet OEMs like Torrance, Calif.-based TabletKiosk are bullish on the rugged market. Customer interest has peaked, said Martin Smekal, president and CEO of TabletKiosk, particularly as manufacturers have worked over the past year to produce rugged tablets that are lighter and better looking.

"We're seeing growth in this market and a lot of consolidation, especially in the vertical markets where there's a much more stable demand," said Smekal. "Customers are beginning to expect that devices that are dropped will have more durability. The biggest trend is that they've gotten much thinner and more aesthetically pleasing. People are much more conscious of the way their devices look."

Meanwhile, key players in the rugged device industry, like Panasonic and Xplore Technologies, continue to push the envelope on lower prices and larger tablet screens with Windows and Android operating systems, as well as more investments in embedded manufacturing applications, according to VDC.

Xplore offers a line of rugged tablets and accessories, such as its 11.2-inch Xc6 ultra-rugged tablets and RangerX fully-rugged Android tablets, which are immune to the harsh work environments of manufacturing companies.

Panasonic, for its part, offers fully- and semi-rugged products like the 14-inch semi-rugged ToughBook 54 and the 10-inch ToughBook 19.

The popularity of rugged tablets has VARs lining up to tap into the market's overflowing revenue opportunities through bundled services, such as remote wipe, device management and maintenance contracts.

Chanhassen, Minn.-based Coridian Technologies is one such solution provider that resells ultra-rugged mobile computer products by vendors like Xplore Technologies.

Mike Cleary, president of Coridian, said one of the key changes he has seen in the market is a new popularity in the "middle ground," citing tablets that are rugged but also contain the aesthetically-pleasing and thin features of consumer tablets.

"Ruggedized devices are more immune to the tablet market slowdown because it’s a specialty market," said Cleary. "There was a lot of fanfare about consumer-type devices in the past few years, but that's run its course as clients want the hybrid space in between, so devices that are more semi-rugged."

Looking ahead, resellers see challenges for rugged sales as the market becomes more consumerized and major consumer players -- like Apple and Samsung -- continue to make their own products more durable.

"I think the rugged market is safe for a few more years until Apple figures out how to make the iPhone 9 waterproof," said Mark Alyn, outside sales manager at Allen, Texas-based ScanTexas, which resells rugged computing devices. "As we see consumer devices get cheaper and more rugged, price points are continuing to go down."

However, TabletKiosk's Smekal remains optimistic that the rugged market's true customer base -- field workers and niche players who truly need the durability of rugged devices -- will continue to push sales for rugged tablets.

"There's definitely a trend of consumerization today, and it's going to continue to cause erosions, but true rugged manufacturers have more serviceability and features that make tablets intrinsically safe," he stressed.

PUBLISHED MAY 14, 2015