Fitbit reports that there are now 50 of the Fortune 500 companies across a variety of industries that are Fitbit wellness customers.

ABI research estimates that by 2018, over 13 million activity-tracking devices will be integrated into employee wellness programs, compared to just 200,000 devices in 2013, and Fitbit could provide a significant portion of those 13 million devices. This week, Fitbit announced that it would expand its compliance with the U.S. Health Insurance Portability and Accountability Act (HIPAA) in an effort to improve the process of gathering Fitbit data for corporate health insurers, according to a press release.

The wearables market faces stiff competition, pricing wars and smartwatches such as the Apple’s Watch.

While the company declined to say how much revenue the Fitbit Wellness division brings in, it did say that it’s one of its fastest-growing business units.

Fitbit won’t see a huge business-to-business bump from being HIPAA compliant. In the next financial year, the company is planning to promote the use of healthy products and foods for the customers.

“It’s called Workplace Race, and all Fitbit Wellness customers will have access to that, where they’ll be able to then engage in a team-based competition”, McDonough said. Target Corp. has now become the largest client of Fitbit as of now. This enables the company to work on wellness programs with HIPAA-covered organizations, such as providers, health plans and self-insured employers, as well as participating in population health projects. However, more personal employee data such as weight, heart rate and food logging remain private, Fitbit says.

While corporate wellness channels struggle with user engagement, we think the characteristics of connectivity could stand to improve this, which could provide tailwinds for wearables in general, and Fitbit specifically as the category leader. Incentivizing employees to go in for a biometric screening or a preventive visit to the doctor are fine programs, but they are transactional by nature and, therefore, do little to give incentive for a behavior change-the ultimate goal of wellness programs.

In addition, there is no guarantee that the workers who do accept the Fitbits will keep using them.

It’s unclear whether giving fitness trackers to employees will have a big impact on their health or health costs.