Wearable Technology TODAY’S AMBIVALENCE AND TOMORROW’S POTENTIAL COLLABORATIVE FUND 2015
Image Source: Wired
COLLABORATIVE FUND 2015
“ If I head out the door in the morning and leave my fitness band at home, I’m not going to turn around to go back and get it. If I leave my phone at home, you bet I’m going to go get it.” – Jeff Malmad, Mindshare WEARABLE TECHNOLOGY refers to electronic technologies that are incorporated into apparel or accessories worn on the user’s body. These devices have sensing, processing, storage, and wireless communication capabilities, and their main function is to help users learn more about themselves and achieve their goals. The existing marketplace has enormous potential, is poised for rapid growth, and is defined by high expectations. Yet, the current reality of wearable devices is plagued by inaccuracy setbacks, unappealing designs, and overwhelming data (with no actionable recommendations or insight). Wearable technology has not been able to deliver the ‘wow’ factor that comes with all the hype, handicapping its ability to become mainstream. Despite facing obstacles today, the wearable market is forecasted to have much success in the future. Collaboration amongst industries, technologies, and sciences will be necessary to push wearable technology forward into the next generation. In addition, invisibility, seamless connectivity (with other IoT applications), and personalization will be major features that will help wearable devices gain mass appeal. Wearable technology will continue to evolve, integrate into our lives, and disrupt industries. The wearable future has tremendous ability to dramatically alter our lives, society, and businesses. SOURCE: PwC, WIRE, MASHABLE, WEARABLE DEVICES IMAGE SOURCE: FITBIT, PCWORLD, FORBES, LIVEATHOS
COLLABORATIVE FUND 2015
TABLE OF CONTENTS 01
Wearable Technology Timeline
04
Wearable Technology is for the whole body.
It’s not a new concept.
02
The Marketplace Market, Consumers, & Challenges
03
The Forecast Marketplace, Industry Trends, & Concerns
Innovative Companies
05
Disrupting Industries
Healthcare, Retail, Media, & Other
COLLABORATIVE FUND 2015
Wearable Tech
I T ’ S N O T A N E W C O N C E P T.
Wearable Technology Timeline
COLLABORATIVE FUND 2015
TIMELINE The First Wearable Watch The Pomader (aka Bisampfeluhr – German invention) is recognized as the first timekeeping device.
1505 17th ı
Century The First Wearable Camera German apothecary, Julius Neubronner, invented Pigeon photography. This technique involved attaching an aluminum breast harness and a lightweight time-delayed mini camera to a pigeon to capture aerial photographs for the German army.
George Keith Taft invented a wearable computer used for gaining an advantage in blackjack. The device was hidden in his shoe and operated with his big toe.
The Oldest Smart Ring The Chinese abacus ring allowed bean counter to perform mathematical tasks without using the written word, instead moving tiny beans along nine rows.
1907 1961 1972
The First Wearable Computer MIT Professors, Edward O. Thorpe and Claude Shannon, designed and developed the world’s first wearable computer, consisting of two parts. One device was concealed in a shoe and the other was hidden inside a cigarette pack. These devices enabled the professors to predict roulette results, apparently giving them a 44% edge in the game.
SOURCE: MASHABLE, WAREABLE
COLLABORATIVE FUND 2015
TIMELINE The First Wristwatch Computer Pulsar introduced the first ever “wristwatch calculator”.
1975 1979
EyeTap – First Digital Eye Glass Steve Mann, a then high school student, wired a 6502 computer into a steel framed backpack to control photographic systems. The display was a camera viewfinder rigged onto a helmet. This invention has gone through multiple models since.
mBracelet Studio 5050 developed mBracelet, a device worn around the wrist. Although it only remained in the prototype stage, mBracelet was developed to introduce wearable computing applications in the finance industry. mBracelet had eight bright colors and the ability to computer financial transactions with ATMs.
The First Wearable Music Player Sony introduced the Sony Walkman, the first portable cassette tape player.
1981 1982
Seiko TV Watch This product needed an adapter and a receiver box to show grainy TV images on its digital time display.
1987 SOURCE: MASHABLE, WAREABLE
COLLABORATIVE FUND 2015
TIMELINE The First Smart Watch Steve Mann built the first Linux-powered watch. It was developed to communicate wirelessly with PCs and other wireless-enabled devices.
1998 2000
Poma PC Xybernaut offered pocket versions of Internet Explorer, Outlook, Windows Media Player and Word pre-installed. Users used an optical mouse to control their actions and viewed their work on a color display mounted on a headband.
The Year of the Wearable
The First Bluetooth Headset The first Bluetooth headset was shipped. Bluetooth technology was invented by a group of engineers at Ericsson in 1994
2002 2006
Nike + iPod Partnership Nike and Apple teamed up to create Nike+iPod, a sport kit that allowed users to sync their movements to their iPods using shoe based sensors.
2015 SOURCE: MASHABLE, WAREABLE
COLLABORATIVE FUND 2015
MOST NOTABLE PLAYERS NOW
Wearable Tech IMAGE SOURCE: FTIBIT
GLOBAL MARKET SHARE FOR WEARABLE DEVICES IN Q1 2015
Fitbit Xiaomi Other Garmin Samsung Jawbone
34% 25% 25% 6% 5% 5%
Currently, wearable technology is mostly concentrated in the healthcare industry, which merges medical, fitness, and wellness. The smartwatch is leading the product category (in revenue), and the number of products shipped will continue to increase . Fitness bands lead the product category in the number of products shipped. Smart apparel, smart jewelry, and other wearable devices will continue to cater to niche audiences. SOURCE: FORBES, YAHOO FINANCE, IDTECHEX
COLLABORATIVE FUND 2015
M O S T N O TA B L E P L AY E R S N O W FITBIT SURGE – $250
GARMIN VIVOACTIVE – $250
JAWBONE UP3 – $180
Pros: Built in GPS, heart rate monitor, classic watch clasp, works with most phone
Pros: Built in GPS, lightweight design (1.34 oz), water-proof, relatively longlasting battery (up to 2 wks),”Move Bar” (inactivity alerts), text/call/social media notifications
Pros: Elegant design, comfortable to wear, advanced sleep and movement tracking
Cons: Dated ’80s-like design, not completely accurate, weaker battery life
Cons: More sporty and basic looking – not as fashionable/sleek as competitors
JAWBONE
GARMIN
FITBIT
Cons: No built in display, new features are not useful, overpriced
XIAOMI MI BAND – $15
HUAWEI TALKBAND B2 – $200
SAMSUNG GEAR LIVE – $200
Pros: Cheap, long-lasting battery (30 days), lightweight and comfortable, waterproof
The TalkBand 2 consists of a Bluetooth headset with a displayed attached to a wristband.
Cons: No built in display, supports few activities, data does not sync in real-time, can overestimate activity, limited app, temperamental LEDs
Pros: Clear call quality, sleek design, comfortable, dust-proof and waterproof
Pros: Bright and colorful highresolution display, works with Google Now and most phone notifications, microphone is sensitive and accurate, comfortable
XIAOMI *Prices displayed are retail prices without discount.
HUAWEI
Cons: Faint, reflective display, positioning in ear can be finicky
Cons: Issues syncing apps to Gear Live, Short battery life (1 day), navigation still temperamental
SAMSUNG
SOURCE: TECHRADAR, PCMAG, WAREABLE IMAGE SOURCE: FITBIT, GARMIN, JAWBONE, ALIEXPRESS, THENEXTWEB, KNOWYOURMOBILE
COLLABORATIVE FUND 2015
M O S T N O TA B L E P L AY E R S N O W PEBBLE TIME STEEL – $250 Pros: Waterproof, relatively battery life for a smartwatch (10 days), full color display is always on
APPLE
ATHOS APPAREL –
PIECES $30-$129, PACKAGES $60-215
ATHOS CORE $199 (REQUIRED TO FUNCTION) PIECES $149-398
Pros: Collection ranges in style and includes necklaces, bracelets, key chains, social media notifications, send emergency alerts, basic activity tracker
Cons: Creaky hardware, lack of touchscreen, limited abilities without a phone
CUFF
PEBBLE
CUFF JEWELRY –
Cons: Not as feature rich as other activity-dedicated trackers
Pros: Real-time feedback, measures muscle effort (micoEMG sensors), heart rate sensors Cons: Only washable by hand, improper placement of sensors throws off all data
ATHOS
APPLE WATCH – $500
GOOGLE GLASS – $1050
OCULUS RIFT– Speculating $350+
Pros: Health tracking (track some biometric variables), mobile alerts, connectivity (Bluetooth and Wi-Fi enabled), digital touch, wrist calls
Pros: True “hands-free” experience, constant connectivity, head tracking navigation
Pros: Removable audio pieces, comfortable fit, super lightweight, adjustable face place
Cons: Poor battery life, limited number of apps, curtails your natural peripheral vision, may develop eye strain and/or headache
Cons: No consumer product yet (Q1 2016)
Cons: Poor battery life (1 day), no built in GPS or mobile service, no sleep tracking, not waterproof
*Prices displayed are retail prices without discount.
GOOGLE
OCULUS SOURCE: TECHSPOT, CNET, PCMAG IMAGE SOURCE: PEBBLE, CUFF, LIVEATHOS, APPLE, FORBES, OCULUS
COLLABORATIVE FUND 2015
Wearable Tech
M A R K E T, C O N S U M E R S , & CHALLENGES
The Marketplace
COLLABORATIVE FUND 2015
MARKET Wearable devices have not reached mass ownership yet, appealing mostly to early adopters. The current commercial focus is on sport and fitness applications, but this will spread to wider industries within the next 2-5 years. AVERAGE PRICE BY BODY LOCATION
EARLY PRODUCTS
ESTABLISHED
$602 HEAD
$420 BODY
$399 TORSO
$299 THIGHS
$284 SHOULDERS
$280 FEET
$182 WAIST
$173 WRIST
$169 BODY (ANYWHERE)
$158 NECK
$139 ANKLE
$138 EAR
$132 ARM
$130 FINGERS
$111 HAND
$104 CHEST
$95 EYES
FUNCTION
AVERAGE PRICE
NUMBER OF DEVICES
INDUSTRIAL
$1706
188
MEDICAL
$649
124
GAMING
$529
55
ENTERTAINMENT
$524
41
LIFESTYLE
$241
33
FITNESS
$199
21
RESEARCH
*CAGR 9.8% *CAGR 10.8% *CAGR 13.0% *CAGR 40.0%
*CAGR 32.0% *CAGR 12.6% *CAGR FOR 2015 - 2025
WEARABLE TECHNOLOGY MARKET
60 50
BILLIONS
$921 LEGS
PROTOTYPE
55
42
40 30 20 10
31
29
11 7.5 9
7.8
11
15
14
19 8.5
8
25
20 8.5
Worst Case Likely Optimistic
9
0
2013
2014
2015
2016
2017
2018
SOURCE: RACONTEUR, ABI RESEARCH, VANDRICO, IDTECHEX RESEARCH
COLLABORATIVE FUND 2015
MARKET VC firms continue to see great potential in the wearable market. However, quarterly dollar funding has a slightly downward trend this year, reflecting that deals – although more frequent – are not necessarily larger than past years. Overall, 2015 seems to be a more modest year than the ‘boom’ in 2014.
WEARABLES FINANCING DOLLAR SHARE, BY STAGE, 2010 - 2015 YTD (9.30.15)
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
7% 7% 21%
5% 16% 5% 26%
5%2% 11% 34%
3% 21% 21%
36%
29% 2011
47%
2012
48%
2013
55%
2015 YTD
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
17% 7%
50%
52%
2% 24%
2011
9%
18% 2%
69% 31%
32%
11%
5%
21% 2%
2012
2013
2014
Series B
Seed/Angel
Series A
Series B
Series C
Series D
Series E+
Series C
Series D
Series E+
7. 8. 9.
BodyMedia Ineda Systems Ledong Information Technology 10. Avegant 10. mCube
7% 48%
42%
Series A
Jawbone Magic Leap Misfit Wearables MC10 Razer Polyera
$800 $700 $600
Seed/Angel
MOST WELL-FUNDED VC-BACKED WEARABLE COMPANIES 2010 – 2015 YTD (9.30.15) 1. 2. 3. 4. 5. 6.
24%
13%
WEARABLES GLOBALY QUARTERLY FINANCING HISTORY
13% 2015 YTD
MILLIONS
WEARABLES FINANCING DEAL SHARE, BY STAGE, 2010 - 2015 YTD (9.30.15)
$500 $400 $300
$685 NUMBER OF DEALS Q1 Q2 Q3 2013 5 12 18 2014 11 19 17 2015 9 18 13
$200 $100
$17
$74
Intel Capital Andreessen Horowitz Rock Health True Ventures Khosla Ventures Qualcomm Ventures Kleiner Perkins Caufield & Byers DCM Ventures
8. 8. 8. 8. 8. 8.
$155
$109 $103 $81
$76 $55 $76
$0 Q1 '13
THE MOST ACTIVE WEARABLES VC INVESTORS 2010 – 2015 YTD (9.30.15) 1. 2. 3. 3. 3. 6. 6. 8.
$116
Q4 15 16 -
First Round Capital Felicis Ventures Bessem Venture Partners The Social+Capital Partnership CrunchFund Formation 8
Q2 '13
Q3 '13
Q4 '13
Q1 '14
Q2 '14
Q3 '14
Q4 '14
Q1 '15
Q2 '15
Q3 '15
VC FUNDING BY CATEGORY Wearable Head
9%
32%
33% 26%
Wearable Body Wearable Wrist/ Hand Wearable Software
SOURCE: CB INSIGHTS
COLLABORATIVE FUND 2015
MARKET Crowdsourcing sites, especially Kickstarter and Indiegogo, have become extremely useful resources to raise capital for entrepreneurs.
WEARABLE FINANCING VIA CROWDFUNDING 2014
CAMPAIGN
$30,000,000 $24,931,877
MILLIONS
$25,000,000 $20,000,000 $15,000,000 $10,076,435
*Q1 2015 raised $25MM from 17 products, with help from Pebble Time crowdfunded $20MM.
$10,000,000 $3,530,717
$5,000,000 $0
# OF PROJECTS
Head 15
Hand/Wrist 34
Body 14
• Wearables account for ~20% of total crowdfunding money raised. • None of the top 5 wearable companies on Kickstarter or Indiegogo were able to ship their products out in the estimated timeframe – reflects inexperience and difficulty translating prototype into high volume manufacturing. • Post campaign, most of these companies (startups rather than established larger companies) were unable to capitalize on their crowdfunding success i.e. Kryeos, Healbe, Ritot.
TECHNOLOGY SUMMARY
CROWDFUNDING AMOUNT RAISED
DATE OF FUNDING COMPLETION
ACTUAL SHIPMENT TIMEFRAME
ESTIMATED SHIPMENT TIMEFRAME
FUNDS FUNDS RAISED RAISED BEFORE DURING CAMPAIGN(S)* CAMPAIGN*
TOP FIVE FUNDED PROJECTS FROM KICKSTARTER Pebble Time
Smartwatch
$20MM
Mar-15
Sep-15
Aug-15
$375,000
None
Pebble Epaper Smartwatch Watch
$10MM
May-12
Jul-13
Sep-12
$375,000
$15MM
Bragi Dash
Wireless earbuds
$3.4MM
Mar-14
Oct-15
Jan-15
None
None
Oculus Rift
Virtual reality headset
$2.4MM
Sep-12
Jul-13
Dec-12
None
$16MM
Earin
Wireless earbuds
$1.1MM
Jul-14
Oct-15
Feb-15
None
None
TOP FIVE FUNDED PROJECTS FROM INDIEGOGO Skully AR-1
Smart motorcycle helmet
$2.4MM
Oct-14
Dec-15
Jul-15
None
$12.5MM
Kryeos
Smartwatch
$1.5MM
Aug-13
Aug-14
Nov-13
None
None
Ritot
Projector watch
$1.7MM
Sep-14
Not Available
Jan-15
None
None
Healbe
Fitness band
$1.1MM
Mar-14
Jul-15
Jun-14
$200,000
$4.1MM
$850,000
Jan-13
Dec-14
Mar-13
$8.3MM
$55MM
Misfit Shine Activity tracker
* Funds raised from external funding rounds and does not include crowdfunding SOURCE: RACONTEUR, CROWDCRUX, TECHCRUNCH, FLYBRIDGE CAPITAL PARTNERS
COLLABORATIVE FUND 2015
CONSUMERS 1 in 5 Americans already own some type of wearable device, and 80% of Americans are familiar with at least one wearable device. This indicates an awareness for the wearable market, but companies need to now convert this awareness into ownership.
A YOUNG CONSUMER BASE:
SMARTWATCHES
ACTIVITY TRACKERS
AWARENESS
74%
81%
OWNERSHIP
GENDER
11%
46% MALE 54% FEMALE
03%
71% MALE 29% FEMALE
The majority of wearable owners are young, with 48% of consumers between 18-34 years.
DIGITAL TRENDSETERS: 75% of wearable owners consider themselves early adopters of technology while only 25% of consumers consider themselves mainstream. Wearable owners tend to be seen as digital trendsetters with more of a disposable income – 29% of consumers make $100,000+.
REASON FOR PURCHASE:
LOOKING FOR SPECIAL FEATURES:
Activity Tracker Owners • Ability to self-monitor • Concern for health
Activity Tracker Owners • Accuracy (70%) • Battery life (64%) • Durability (73%)
Smartwatch Owners: • Convenience • Smartphone addiction supplement
Smartwatch Owners • Functionality (81%) • Comfort (79%) • Durability (82%)
SOURCE: NPD GROUP CONNECTED INTELLIGENCE, NIELSON
COLLABORATIVE FUND 2015
CHALLENGES Even though tech giants are flooding into the wearable space, there are still physical, cultural, technological, and design barriers preventing wearables from becoming mainstream.
01 A PAT H E T I C A U D I E N C E
% OF POPULATION WHO DO NOT THINK THEY WILL USE THE FOLLOWING PRODUCTS PEOPLE TRACKING
31%
FITNESS BANDS
36%
SMART WATCH
36%
SMART GLASSES
35%
SMART CLOTHING
40%
• Wearables are still bulky and not aesthetically pleasing. 62% of consumers wish wearables came in forms beside wrist bands and watches. • Wearables are still not quite ‘socially acceptable’ to wear for the masses. They are still seen as standalone tech gadgets for the technology-capable and –educated. • 33% consumers who purchased a wearable tech device more than a year ago now say they no longer use their device. • According to a PwC case study, most consumers want to lump the smartphone in the wearable category. This shows wearable devices are not seen as a device with a distinct value proposition yet. And therefore, consumers are hesitant to pay for these new gadgets - 72% of consumers wish wearables were less expensive.
02 03 C O N S I T E N C Y OF DATA
OVERLOAD OF INFORMATION
• Consumers do not wear the devices enough for continuous data collection and interpretation. In addition, frequency of measurement amongst various wearable devices are different based on manufacturers and methods.
• Consumers are skeptical that the data coming back to them is accurate. • Wearable devices give so much information, people do not know what to do with all the data points. Consumers want to be told what to fix, why they need to fix it, and how they need to fix it.
SOURCE: PwC, WIRED, NIELSON
COLLABORATIVE FUND 2015
Wearable Tech
MARKETPLACE, INDUSTRY TRENDS, CONCERNS
The Forecast
COLLABORATIVE FUND 2015
MARKETPLACE The wearable market is ripe for growth, and 76% of consumers say they would not need their wearable device to replace an existing piece of technology in order to justify its purchase.
WORLD WEARABLE DEVICE FORECAST, Q1 2015
SMART WRISTWEAR OS
2015 SHIPMENTS (MILLIONS)
2015 MARKET SHARE
2019 SHIPMENTS (MILLIONS)
2019 MARKET SHARE
160
WATCHOS
13.9
58.3%
40.3
47.4%
140
ANDROID/ANDROID WEAR
4.1
17.4%
32.6
38.3%
PEBBLE OS
2.1
8.7%
2.6
3.1%
2.0
8.3%
7.6
9.0%
Eyewear
REAL TIME OPERATING SYSTEM (RTOS)
Clothing
TIZEN
1.6
6.7%
1.8
2.2%
OTHER
0.1
0.6%
0
0%
TOTAL
23.8
1.0
85.1
1.0
180
MILLIONS
120
Other
100
Modular Earwear
80 60
Wrist
40 20 0
2014
F2015
F2016
F2017
F2018
F2019
Other
0.1
0.5
1.3
2.1
3.1
4.5
Modular
3.5
4.6
6.3
7.6
8.5
9.2
0.1
0.1
0.3
0.3
0.4
0.9
3.8
6.1
8
9.7
0.3
1.3
3.7
5.9
8.4
65.7
88.4
103.3
115.3
123.5
Earwear Eyewear
0.1
Clothing Wrist
22.7
% OF MILLENNIALS WILLING TO MAKE A PURCHASE WITHIN THE NEXT YEAR SMART GLASSES
SMART CLOTHING
SMART WATCH
FITNESS BAND
23%
24%
40%
51%
SOURCE: PwC, IDC TRACKER
COLLABORATIVE FUND 2015
INDUSTRY TRENDS Wearable technology will continue to improve, find new applications, and become more mainstream.
Wearable Technology will… Become a critical component of the Internet of Things (IoT) network. Utilize cloud computing and corresponding Big Data applications. Disrupt industries – most notably the Healthcare, retail, and media industries. Focus on privacy and security concerns.
01 02 03 04
IMAGE SOURCE: AMPSTRIP, HGLASSER, FROG DESIGN, THE GUARDIAN, NUVIUN
COLLABORATIVE FUND 2015
INDUSTRY TRENDS In order for wearable technology to gain mass adoption, wearable devices need to strive for certain features.
01
02
Invisibility
•
•
Wearable devices will integrate more into our lives, removing the hassle of wearables being an added ‘device’. Wearable tech will fade into our lives by making it an intuitive part of apparel, accessories, and medication (“smart pills”, “smart band-aids”).
03
Seamless Connectivity •
Wearable devices will become an integral part of the IoT landscape, representing singular digital ecosystems merging into a massive digital network. Wearable technology firms will partner with other industries to create a more cohesive and connected ecosystem.
Personalization •
• •
Human-centered design and user-centric technologies are aligning functionality and form with the user’s individual needs and wants. Wearable interactions, coaching, and feedback will be highly personalized to the consumer’s behavior, location, and wellness. Wearable designs will be tailored to fit the wearer’s body. Continuous connectivity is fueling data and recognition to curate more relevant and customized information into people’s lives.
04
Multi-Point
• There will be a shift from wearing a singular device to a system of sensors and devices, creating a comprehensive and holistic view for the user.
SOURCE: WIRED, TECHCRUNCH
COLLABORATIVE FUND 2015
CONCERNS While the potential for wearable technology seems endless, there are concerns companies need to be aware of as they build the next generation of wearables.
SENSING
ANALYTICS
•
•
•
•
Sensing refers to the ability to detect consumer’s physical activity and performance, biometrics, location, and sometimes emotional state. Concern: Most wearable devices measure only a select few activities, have a short battery life, vary in reliability in measurement and data quality, and provide little interpretive feedback for users. Keep In Mind: Wearable devices will need to evolve and learn to sense more activities.
•
COGNITIVE ACTION
ACTION
INTEGRATION • •
•
Data integration is pertinent for analytics to occur. Concern: Activity trackers collect different types of data on different functions using different formats and platforms. This presents a challenge at the data integration layer. It is very complicated to aggregate all these data sets across diverse systems and sensors from multiple entities. Keep In Mind: Utilizing cloud computing to transform data and for storage may be a centrally accessible viable option.
Concern: Consumers have overwhelming information with inconsistent accuracy and data points with no real analysis. Keep In Mind: Consumers want actual suggestions and advice on how to improve and progress. Data that is sent back to the user should be relevant to promote engagement i.e. comparative usage, optimization, understanding trends and reasons for variation.
ANALYTICS OF THINGS
•
•
DATA INTEGRATION
Concern: Currently, wearables do not place emphasis on encouraging or reminding people to perform physical activity or change their poor habits. Keep In Mind: Whether it is a physical nudge, electronic notification, or social media aspect, wearable devices need mechanisms that motivate cognitive action. This will lead to real changes in behavior, habits, and attitude.
LOCAL SENSING SOURCE: DELOITTE, DUPRESS.COM
COLLABORATIVE FUND 2015
CONCERNS Data ownership and privacy are major concerns for consumers.
86%
Of consumers expressed concern over vulnerability to security breaches
82%
Of consumers were worried that wearable tech would invade their privacy.
KEEP IN MIND 1. 2. 3.
Make the data transparent Clearly communicate the return value for sharing data Build Opt-in Privacy Settings
IMAGE SOURCE: NEW ELECTRONICS, RFID READY
PERCENT OF CONSUMERS WHO SAY WEARABLE DEVICES WILL: hurt our ability to relate other humans.
72%
make me too dependent on technology.
68%
take away my autonomy at work.
65%
turn un into robots.
54%
make my job unnecessary/ redundant.
47%
make everyone look ridiculous.
37%
HOWEVER…
IMAGE SOURCE: NXP, BETAKIT
Consumer appetite for revealing personal information is shifting. They are more and more willing to share personal information in exchange for benefits – emotional validation, monetary compensation, personalization, curiosity satiation. It is important to note that consumers still want control over their digital personas and transparency in how the data is being used.
“You need to trust the tech world right now and give us your data…Privacy and security are super important, but we also need to start to trust our technology.” - Miriam Joire, Pebble SOURCE: PwC, SOURCEBITS
COLLABORATIVE FUND 2015
Wearable Tech
WEARABLE TECH IS FOR T H E W H O L E B O D Y.
Innovative Companies
COLLABORATIVE FUND 2015
W E A R A B L E T E C H I S F O R T H E W H O L E B O D Y. The majority of wearable devices are worn on the wrist, but more and more devices are now clipped onto the body, hung around the neck, worn around the torso, and blend in with jewelry and accessories. The opportunities are endless.
Head • • • • •
Kids
OTHER
Plantronics Wearable Concept 2 Nozpad Biosensitive Tech Ear-O-Smart Linx IAS Frog Design Airwaves
• • •
Spire MIT’s “Band-Aid of the Future” PillCam COLON
• • • •
Mimo T-Jackets Moff FiLIP
Upper Body • • • •
Heddoko Sports Performance Tracking GameTraka Like A Glove Smart Leggings bOMDIC GoMore
Lower Body • • •
Humon LEO: Fitness Intelligence Moov Now
Arm/Wrist • • •
Sensoria Smart Socks Boogio Bionic Foot Sensors Solepower
• • •
Nixie PUSH Altruis
• •
Nymi WHOOP
SOURCE: CHARACTERS CREATED FROM BITSTRIP
COLLABORATIVE FUND 2015
W E A R A B L E T E C H I S F O R T H E W H O L E B O D Y.
Head
Plantronics Wearable Concept 2 (Prototype) Plantronics WC2 features hands-free voice commands and motion tracking capabilities to enable comprehensive capture of device orientation in 3D.
Upper Body
Nozpad (Beta Testing) Nozpad tracks status and makes prediction of health diagnosis based on nostril air pressure, breathing rate variation, and BMI to breath ratio.
Heddoko Heddoko is the first smart compression suit that tracks fullbody movement in 3D.
Biosensitive Technologies Inc. Ear-O-Smart
Linx IAS
Linx IAS offers realtime alerts and impact Ear-O-Smart is the data, when a head world’s first smart collision occurs. The earring (patent pending) app can be used to which can monitor user’s administer post-impact heart rate, calories, and sidelines tests. activity.
SPT GameTraka GameTraka is a GPS tracking device (fitted in a vest) that samples the user’s location five times a second, provides key performance analytics, can compare performances for all team members.
Frog Design Airwaves (Product Concept) Airwave’s air quality data is merged with the readings of thousands of other masks, creating a crowdsourced global data network. The mask also creates a microenvironment for the wearer.
Like a Glove Smart Leggings Like A Glove Smart Leggings measures the wearer’s legs via sensors and sends the stats to the app. The app then matches the measurements against exact measurements of thousands of jeans and finds brands, models, sizes that fit the user the best.
bOMDIC GoMore GoMore helps users understand how much stamina is required to complete a routine and when their body is running low on stamina.
IMAGE AND INFORMATION SOURCE: PLANTRONICS, YAHOO FINANCE, NOZPAD, EAR-O-SMART, LINX, FROG DESIGN, HEDDOKO, LIKE A GLOVE, GAMETRAKA, GOMORE, KICKSTARTER, INDIEGOGO
COLLABORATIVE FUND 2015
W E A R A B L E T E C H I S F O R T H E W H O L E B O D Y. Arm/Wrist
Lower Body/Feet
Nixie (In Development) Nixie is the first wearable camera (worn on wrist) that can fly. With a gesture, Nixie takes off, captures a photo or video, and flies back to the user.
Altruis Altruis is a smart stone that vibrates when the user gets priority notifications. The stone can be popped out and swapped amongst various accessories – ring to bracelet to pendant.
PUSH Band PUSH is an armband that counts weight lifting sets, reps, power, and velocity automatically. The device suggests changes to weights and reps based on performance.
Nymi (Developer’s Kit) Nymi unlocks devices, remembers passwords, and can do payments, using the user’s unique heart signature.
WHOOP WHOOP is a wrist-worn strap designed to collect more than 150MB of physiological data per day. The data streams to the system’s analytics platform to keep track of overtraining and quality of recovery.
Humon (Alpha Testing) Humon is a real-time lactic acid threshold monitor designed for endurance athletes.
Sensoria Smart Socks Sensoria Smart Socks can help improve the user’s running form, speed, pace, cadence, and foot landing.
LEO: Fitness Intelligence LEO translates bio-data into straightforward and actionable recommendations and notifies the user in real-time.
Boogio Bionic Foot Sensors Boogio is a set of sensory stickers and tiny computers that activates any shoe to play in mobile and reality games, tracks movement and activity, and takes hands-free control of technology.
Moov Now Moov Now has a number of workouts and training plans and uses a voice coach to guide and affect user’s performance in realtime.
Solepower Solepower is a powergenerating shoe insole for charging portable electronics.
IMAGE AND INFORMATION SOURCE: KICKSTARTER, INDIEGOGO, TECHCRUNCH, WARABLE, WHOOP, BOOGIO, APPKNOX, SOLEPOWER
COLLABORATIVE FUND 2015
W E A R A B L E T E C H I S F O R T H E W H O L E B O D Y. Kids
OTHER
Given Imaging PillCam COLON
Spire Spire (clip) tracks the wearer’s motion and breathing patterns, notifying the user to relax when they are anxious or stressed.
PillCam COLON is a battery-powered camera pill that takes high speed photos of the intestinal tract, serving as an alternative to invasive colonoscopy procedures. The photos are transmitted to a data recorder worn around the user’s belt.
MIT’s “Band-Aid of the Future” “Band-Aid of the Future” is a sticky, stretchy hydrogel that includes temperature sensors, LED lights, and drug delivery channels. The dressing can release medicine and give alerts when the medication is running low.
Mimo Mimo is a sensor that tracks the baby’s breathing, body position, sleeping temperature, and activity level. Mimo can work with select Nest products.
Moff Band Moff Band (slap bracelet) is a wearable smart toy that connects to apps wirelessly, senses the user’s movement, and analyzes and responds by matching sounds to these movements.
T-Jacket T-Jacket is a wearable technology vest that provides personalized deep pressure hugs that calm people. A built-in sensor monitors stress/arousal levels.
FiLip FiLIP can make and receive phone calls, has a smart locator, and is worn on the child’s wrist.
IMAGE AND INFORMATION SOURCE: TECHCRUNCH, SPIRE, T-JACKET, MOFF, FILIP, MIT, GIVEN IMAGING
COLLABORATIVE FUND 2015
Wearable Tech
H E A LT H C A R E , R E TA I L , MEDIA, & OTHER
Disrupting Industries
COLLABORATIVE FUND 2015
H E A LT H & H E A LT H C A R E I N D U S T R Y PERSONALIZED HEALTH
NEED TO BE AWARE OF
• Wearable tech provides motivation and accountability to users in their diet,
• As wearable technology becomes becomes cheaper and more sophisticated,
exercise, and overall health. • Made–to–fit sensor–equipped apparel and devices will allow for more customization and personalization.
DATA-FACILITATED CARE • Embedded biometric sensors and associated software fill in important gaps of a user’s life, providing continuous collection and analysis of their health and wellness performance, behavior, and physiology. • Physicians, care teams, and coaches have better access to medical information and are able to make more accurate observations, diagnosis, and decisions quickly and remotely. • Pharmaceutical companies can conduct more elaborate clinical trials and gather more comprehensive data to support outcomes-based reimbursement.
INSURANCE • Insurance companies can rely on data generated from personal wearable
these devices will integrate more into consumers’ lives and health ecosystems and become more self-sufficient. • Compliance with regulatory agencies and privacy issues are two important obstacles to note.
CURRENT NEWS • By 2018, 70% of healthcare organizations worldwide will invest in consumerfacing technology including apps, wearables, remote monitoring and virtual care. • Wearable technology could drop hospital costs by as much as 16% over the course of 5 years, and remote patient monitoring technologies could save our healthcare system $200B over the next 25 years. • Over 80% of consumers said an important benefit of wearable tech is its potential to make healthcare more convenient. • 88% of physicians want patients to monitor their health parameters at home.
devices instead of client declarations. Information such as location, driving record, medications used, credit history, spending habits, etc. will create more accurate and honest data sets than client statements.
SOURCE: PwC, READWRITE, IDC HEALTH INSIGHTS, CDW HEALTHCARE, ORANGE HEALTHCARE
COLLABORATIVE FUND 2015
R E TA I L I N D U S T R Y RETAIL
FASHION
• Wearable devices creates new opportunities for targeted (real-time)
• Fabrics will transform into more of an active (reactive and interactive)
advertising and content marketing i.e. promotional spending. • Wearable devices will transform retail loyalty programs, giving businesses the ability to reward behaviors rather than just purchases. • There will be faster payments and point of sales via wearables. • The new consumer experience will be omni-channel, supported by wearable devices and analytics. For example, wearable devices will eventually allow users to ‘like’ what they see or hear outside of a store and track their shopping preferences while in a store. This enables retailers to connect prestore behavior and in-store behavior, creating stronger shopping insights. In turn, retailers are able to personalize expertise and service to their customers. • Wearable technology is projected to drive potential operational savings of $1B per year by 2017.
resource for consumers. • The collaboration between wearable technology and fashion will bring about alternative forms of energy: Tommy Hilfiger launched solar-powered jackets that are able to charge small electronic devices. • Several notable technology and retail collaborations: o Intel launched the Make It Wearable Challenge in addition to a a partnership with Barney’s, Opening Ceremony, and CFDA. o Shapeway, a maker of 3D printed jewelry, has created a partnership with Victoria Secret, Kimberly Ovitz, and Neiman Marcus. o Startups are now looking to seamlessly integrate wearable technology with fashion, removing the ‘clunkiness’ of present wearable devices and creating smart jewelry to wear and show off as fashion pieces i.e. companies like Cuff and partnerships like FitBit and ToryBurch NEED TO BE AWARE OF • No one wants personal data compromised. • Only 14% consumers are willing to share their shopping habits with family and friends. They are not interested in what other people bought.
SOURCE: PwC, DELOITTE DIGITAL, WIRED, CNET
COLLABORATIVE FUND 2015
E N T E R TA I N M E N T, M E D I A , & C O M M U N I C AT I O N S I N D U S T R Y
ADVERTISING
ENTERTAINMENT, MEDIA, & COMMUNICATIONS
• Advertising will be in real-time, delivered with greater context and relevance,
• Wearable devices will enable more seamless integration and engagement
and shift away from being an interruption in the consumer’s life. • Wearable devices will open up new platforms and screens for targeted advertisement and marketing i.e. If sensors reveal the user is thirsty and need to re-hydrate, their device will notify them with a $1 coupon for Dasani Water. • For example: o Undertone, a digital advertising agency, has tested pushing coupons for a candy bar to shoppers just as they pass the candy display. o Freckle IoT, an ad tech company, enables their location partners and application publishers to reach consumers I and out of the retail environment.
with the media. Wearable devices will provide a more personalized curation of relevant content and solutions for consumers. • Wearable devices will enable higher sophistication in gaming, making video games more immerse, multi-sensory, and lifelike. • 62% of Millennials said they expect half of all TV watching to take place on wearable screens in the future. • 73% of consumers (and a higher number of 79% for Millennials) expect wearable technology to make entertainment more immersive and fun. • 64% of Millennials said they would be excited to try a wearable technology product introduced by an entertainment or media company. • For example: Avegant crowdfunded: $1.5M to develop smart headphones that doubles as movie screen.
NEED TO BE AWARE OF • Understand the younger population and their lifestyle, desires, and aesthetics.
SOURCE: PwC, WEARABLE TECHNOLOGIES, FRECKLE IOT
COLLABORATIVE FUND 2015
OTHER INDUSTRIES FINANCIAL – MOBILE PAYMENT • Finance industry will focus on leveraging behavioral data gathered by wearable devices to develop more loyal customers, help customers become more informed, responsible, and smarter with their payment decisions. • Banks will collaborate and partner with smaller fintech startups to provide a shortcut for skills. • Notable partnerships: o MasterCard has partnered with designer Adam Selman, automaker General Motors, innovator Nymi, smart jewelry company Ringly, and Bluetooth locator TrackR to launch a new program that can turn any consumer device into a payment device. (MasterCard) o Angie Moody, Capital One’s VP of New Product Innovation, “Wearables offer new ways to learn who you are, when you are, and where you are.”
NEED TO BE AWARE OF • This will also be dependent on the size of accepted consumers and the number of retailers that will accept different forms of digital payment options.
INGESTIBLE SENSORS • Instead of remembering to “wear” their wearable devices, people can simply swallow their “smart pill” and allow for continuous data collection and interpretation. These ingestible sensor offers a more invisible and integrated option for health observation and data analytics. • Notable partnerships and research: o Jawbone is actively developing ingestible sensors and devices that will live within a person’s bloodstream, allowing for long-term tracking and the ability to sync up with all the tech in the user’s environment. o In 2012, FDA approved a smart ingestible pill developed by Proteus Digital Health. This smart pill works in conjunction with a sensor patch and smartphone. The patient swallows the pill and the sensor is activated by electrolytes within the body. It then transmits a signal and data to a small, battery-powered patch on the body. Once received, this data is transported via Bluetooth to a smartphone. o Researchers at Scripps are developing and advancing embedded nanosensors, that travel in people’s bloodstream, to help detect heart attacks before they happen.
SOURCE: MASTERCARD, CIO, PwC, FORTUNE, SCRIPPS
COLLABORATIVE FUND 2015
OTHER INDUSTRIES WORKFORCE
SAFETY
• 77% of consumers believe it’s important for wearable tech to make us more
• Wearable devices will help monitor children’s whereabouts and provide a
efficient/productive both at home and work. • Wearable devices will help track and monitor employees’ work performance
sense of security for adults and children. • Examples:
and derive insights on how to streamline operations and optimize efficiencies
o Safelet is a “stylist” bracelet for user’s safety. The wearable can send
i.e. improve employee communication, deliver real-time instruction and
out alerts, share location, and dial an emergency number.
feedback.
o First Sign Hair Clip combines a hair clip with a mobile application to
• Examples:
automatically call for help and collect evidence at the first sign of an
o UK airline EasyJet will start a trial of new uniforms for cabin crew and engineers early 2016. Both sets of uniforms will have built-in microphones. The cabin crew uniforms are dotted with LEDS. The engineer’s uniform will include reflective panels and LEDS, built-in video cameras, air quality sensors, and a barometer. o The Container Store started to take away their two-way radio systems
emergency.
GESTURE-BASED INTERFACE •
Allowing gesture and motion based devices to control other IoT.
•
Examples o
device that “translates” sign language into English by sensing the
(in 2013) and replace them with the Theatro Wearable Computer. This
user’s movements. It can recognize 40 ASL signs with 96%
gadget enables hands-free voice communication over Wi-Fi.
AUTHENTICATION •
Use wearable technology as a form of authentication.
•
For example: Epicenter, a Swedish high tech company, offers employees
Researchers at Texas A&M University have developed a wearable
accuracy. o
The Myo armband lets users wirelessly control technology with gestures and motions.
RFID chips to implant, giving them access to locked doors and machinery.
SOURCE: PwC, SAFELET, FIRST SIGN, CIO, SMITHSONIAN MAG, MYO, CNET
COLLABORATIVE FUND 2015
IMAGE SOURCE: INTEL
KEEP IN MIND
For The Future
Wearable Tech
THERE IS A WEARABLE FUTURE AHEAD. Wearable technology is in the midst of exciting innovations, collaborations, and transformations. In striving towards a successful future, it will be necessary to emphasize user-centric designs, push interoperability, and improve on real-time, useful data analytics to shift the market into a sustainable aspect of consumers’ lives. The future of wearable technology is right around the corner and poised to change the way we live.
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Wearable Technology TODAY’S AMBIVALENCE AND TOMORROW’S POTENTIAL COLLABORATIVE FUND 2015
Image Source: Wired
