The Wearable Technology Ecosystem: 2014 · The Wearable Technology Ecosystem: 2014 – 2020...

The Wearable Technology Ecosystem: 2014 – 2020 Opportunities, Challenges, Strategies, Industry Verticals & Forecasts

© 2014 SNS Research

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Table of Contents

1 Chapter 1: Introduction ................................................................................... 19

1.1 Executive Summary ....................................................................................................................................... 19

1.2 Topics Covered .............................................................................................................................................. 21

1.3 Historical Revenue & Forecast Segmentation ............................................................................................... 22

1.4 Key Questions Answered ............................................................................................................................... 24

1.5 Key Findings ................................................................................................................................................... 25

1.6 Methodology ................................................................................................................................................. 26

1.7 Target Audience ............................................................................................................................................ 27

1.8 Companies & Organizations Mentioned ....................................................................................................... 28

2 Chapter 2: An Overview of Wearable Technology ............................................ 32

2.1 What is Wearable Technology? ..................................................................................................................... 32

2.2 Device Classification ...................................................................................................................................... 32

2.2.1 Head-worn Devices ........................................................................................................................... 32

2.2.2 Wrist-worn Devices ........................................................................................................................... 32

2.2.3 Leg and Ankle-worn Devices ............................................................................................................. 33

2.2.4 Arm, Chest and Neck-worn Devices .................................................................................................. 33

2.2.5 Smart Clothing & Jewelry .................................................................................................................. 33

2.2.6 In-Body Wearables ............................................................................................................................ 34

2.3 Enabling Technologies ................................................................................................................................... 35

2.3.1 MEMS & Sensors ............................................................................................................................... 35

2.3.2 BT-LE (Bluetooth Low Energy) & WiFi ............................................................................................... 35

2.3.3 Voice Recognition .............................................................................................................................. 36

2.3.4 Lowed Powered Wireless SoCs .......................................................................................................... 36

2.3.5 RFID & NFC ........................................................................................................................................ 37

2.3.6 GPS & Navigation Technology ........................................................................................................... 37

2.3.7 Energy Harvesting .............................................................................................................................. 37

2.3.8 Ergonomics & Materials Science ....................................................................................................... 38

2.3.9 Augmented Reality ............................................................................................................................ 38

2.4 Market Growth Drivers ................................................................................................................................. 39



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2.4.1 Proliferation of Smartphones ............................................................................................................ 39

2.4.2 Advances in Enabling Technologies & Components .......................................................................... 40

2.4.3 Interest from New Market Segments ................................................................................................ 40

2.4.4 Human Centric Assistance ................................................................................................................. 40

2.4.5 Meaningful Analytics & Tracking ....................................................................................................... 41

2.4.6 Venture Capital, Crowdfunding & Corporate Investments ............................................................... 41

2.4.7 Endorsement by Major Mobile OEMs ............................................................................................... 41

2.5 Market Barriers ............................................................................................................................................. 42

2.5.1 High Costs .......................................................................................................................................... 42

2.5.2 Power Consumption & Battery Life Issues ........................................................................................ 42

2.5.3 Usability & Unusual Styling................................................................................................................ 42

2.5.4 Potential Health Issues ...................................................................................................................... 43

2.5.5 Privacy & Security Concerns .............................................................................................................. 43

2.5.6 Social Acceptance .............................................................................................................................. 43

3 Chapter 3: Vertical Opportunities & Use Cases ................................................. 45

3.1 Consumer Markets ..................................................................................................................................... 45

3.1.1 Infotainment & Lifestyle .................................................................................................................... 45

3.1.1.1 Personal Assistance, Notifications & Alerts .................................................................................................. 45

3.1.1.2 Photography ................................................................................................................................................. 46

3.1.1.3 Navigation Assistance ................................................................................................................................... 46

3.1.1.4 Smart Home Applications ............................................................................................................................. 46

3.1.1.5 Media & Entertainment ................................................................................................................................ 47

3.1.1.6 Memory Recall .............................................................................................................................................. 47

3.1.2 Sports & Fitness ................................................................................................................................. 47

3.1.3 Gaming .............................................................................................................................................. 48

3.1.4 Pet Care ............................................................................................................................................. 48

3.1.5 Child Care & Entertainment .............................................................................................................. 49

3.1.6 Helping People with Disabilities ........................................................................................................ 49

3.1.7 Car Insurance Claims ......................................................................................................................... 49

3.1.8 Accurate & Targeted Marketing ........................................................................................................ 50

3.2 Healthcare .................................................................................................................................................. 51

3.2.1 Remote Patient Monitoring............................................................................................................... 51



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3.2.2 Assisted Patient Examination ............................................................................................................ 51

3.2.3 Reducing Healthcare Costs ................................................................................................................ 51

3.2.4 Optimizing Health Insurance Costs.................................................................................................... 52

3.2.5 Enhancing Medical R&D .................................................................................................................... 52

3.3 Retail & Hospitality..................................................................................................................................... 53

3.3.1 Improving Retail Productivity ............................................................................................................ 53

3.3.2 Comparing & Contrasting Retail Items .............................................................................................. 53

3.3.3 Travel: Personalizing Customer Service ............................................................................................. 53

3.3.4 Replacing Hotel Keys and Credit Cards .............................................................................................. 54

3.3.5 Augmenting City & Museum Tours ................................................................................................... 54

3.4 Military ....................................................................................................................................................... 55

3.4.1 Enhancing Infantry Tactics: Shooting Without Being Shot ................................................................ 55

3.4.2 Monitoring Combat Stress & Injuries ................................................................................................ 55

3.4.3 Enhancing Situational Awareness in the Battlefield .......................................................................... 56

3.4.4 Enabling Battlefield Mobility ............................................................................................................. 57

3.4.5 Facilitating Communications with Military Dogs ............................................................................... 57

3.5 Public Safety ............................................................................................................................................... 58

3.5.1 Recording Criminal Evidence ............................................................................................................. 58

3.5.2 Enhancing Situational Awareness & Assets Coordination ................................................................. 58

3.5.3 Identifying Suspects & Traffic Violators ............................................................................................ 59

3.5.4 Monitoring Biophysical Activity for First Responders ....................................................................... 59

3.5.5 Enhancing Fire Fighting Capabilities .................................................................................................. 59

3.5.6 Improving Response to Medical Emergencies................................................................................... 60

3.6 Other Verticals ........................................................................................................................................... 61

3.6.1 Construction Industry ........................................................................................................................ 61

3.6.2 Mining Industry ................................................................................................................................. 61

3.6.3 Manufacturing Operations ................................................................................................................ 61

3.6.4 Logistics & Supply Chain .................................................................................................................... 62

3.6.5 Financial Services ............................................................................................................................... 62

3.6.6 Security & Authentication ................................................................................................................. 62

3.6.7 Repair, Inspection & Field Services ................................................................................................... 63

3.6.8 Education ........................................................................................................................................... 63



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3.7 Case Studies .................................................................................................................................................. 64

3.7.1 Virgin Atlantic: Improving Airline Customer Services with Wearable Technology ............................ 64

3.7.1.1 Solution & Vendors ....................................................................................................................................... 64

3.7.1.2 Applications .................................................................................................................................................. 64

3.7.1.3 Feedback from the Field ............................................................................................................................... 64

3.7.2 U.S. Department of Defense: Delivering Tactical Information with Wearable Technology .............. 65


3.7.2.2 Applications .................................................................................................................................................. 65


3.7.3 Dubai Police: Catching Speeding Drivers with Google Glass ............................................................. 66


3.7.3.2 Applications .................................................................................................................................................. 66


3.7.4 Disney: Theme Park Management with Wearable Technology ........................................................ 67


3.7.4.2 Applications .................................................................................................................................................. 67


3.7.5 AT&T: Connected Healthcare Monitoring for the Elderly ................................................................. 68


3.7.5.2 Applications .................................................................................................................................................. 68


4 Chapter 4: Industry Roadmap & Value Chain ................................................... 69

4.1 Wearable Technology Industry Roadmap .................................................................................................. 69

4.1.1 2013 – 2014: Initial Hype & the Revival of Smart Watches ............................................................... 69

4.1.2 2015 – 2016: Convergence of Wrist Worn Wearables ...................................................................... 70

4.1.3 2018 – 2020 & Beyond: The Augmented Reality & Smart Glasses Era.............................................. 70

4.2 The Wearable Technology Value Chain...................................................................................................... 71

4.2.1 Enabling Technology Ecosystem ........................................................................................................ 71

4.2.1.1 Chipset Vendors ............................................................................................................................................ 71

4.2.1.2 Sensor, Display & Enabling Hardware Providers ........................................................................................... 72

4.2.1.3 OS & Software Providers ............................................................................................................................... 72

4.2.1 Wearable Device OEM Ecosystem ..................................................................................................... 72

4.2.1.1 Vertical Centric OEMs ................................................................................................................................... 72



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4.2.1.2 Smartphone, Tablet & Consumer Electronics OEMs ..................................................................................... 72

4.2.1.3 Fashion & Watch OEMs ................................................................................................................................ 73

4.2.2 Consumers & Vertical Enterprises ..................................................................................................... 73

4.2.3 Wireless Carriers & the Connectivity Ecosystem ............................................................................... 73

4.2.4 Applications Ecosystem ..................................................................................................................... 73

5 Chapter 5: Market Analysis & Forecasts ........................................................... 74

5.1 Global Outlook of Wearable Technology ...................................................................................................... 74

5.2 Form Factor Segmentation ............................................................................................................................ 75

5.3 Smart Bands .................................................................................................................................................. 76

5.4 Smart Watches .............................................................................................................................................. 77

5.5 Smart Glasses ................................................................................................................................................ 78

5.6 Smart Clothing ............................................................................................................................................... 79

5.7 Smart Jewelry ................................................................................................................................................ 80

5.8 Heads-up Display Systems ............................................................................................................................. 81

5.9 Others ............................................................................................................................................................ 82

5.10 Vertical Market Segmentation ................................................................................................................... 83

5.11 Consumer Wearable Devices ..................................................................................................................... 84

5.12 Healthcare Wearable Devices .................................................................................................................... 85

5.13 Retail & Hospitality Wearable Devices ....................................................................................................... 86

5.14 Military Wearable Devices ......................................................................................................................... 87

5.15 Public Safety Wearable Devices ................................................................................................................. 88

5.16 Wearable Devices in Other Verticals .......................................................................................................... 89

5.17 Regional Market Segmentation ................................................................................................................. 90

5.18 Asia Pacific .................................................................................................................................................. 91

5.19 North America ............................................................................................................................................ 92

5.20 Western Europe ......................................................................................................................................... 93

5.21 Eastern Europe ........................................................................................................................................... 94

5.22 Middle East & Africa ................................................................................................................................... 95

5.23 Latin & Central America ............................................................................................................................. 96

6 Chapter 6: Key Market Players ......................................................................... 97

6.1 270 Vision ...................................................................................................................................................... 97



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6.2 3L Labs ........................................................................................................................................................... 98

6.3 4DForce ......................................................................................................................................................... 99

6.4 4iii Innovations ............................................................................................................................................ 100

6.5 9Solutions .................................................................................................................................................... 101

6.6 Active Mind Technology .............................................................................................................................. 102

6.7 Adidas .......................................................................................................................................................... 103

6.8 AirType ........................................................................................................................................................ 104

6.9 Amazon ........................................................................................................................................................ 105

6.10 AMD (Advanced Micro Devices) ............................................................................................................... 106

6.11 Amiigo ...................................................................................................................................................... 107

6.12 Apple ........................................................................................................................................................ 108

6.13 ARA (Applied Research Associates) .......................................................................................................... 109

6.14 Archos ...................................................................................................................................................... 110

6.15 ARM Holdings ........................................................................................................................................... 111

6.16 Atheer Labs .............................................................................................................................................. 112

6.17 Atlas Wearables ....................................................................................................................................... 113

6.18 Augmendix ............................................................................................................................................... 114

6.19 Avegant .................................................................................................................................................... 115

6.20 Baidu ........................................................................................................................................................ 116

6.21 BAE Systems ............................................................................................................................................. 117

6.22 Bionym ..................................................................................................................................................... 118

6.23 Biosensics ................................................................................................................................................. 119

6.24 BIT (Blue Infusion Technologies) .............................................................................................................. 120

6.25 BI (GEO Group) ......................................................................................................................................... 121

6.26 BIA Sport .................................................................................................................................................. 122

6.27 Bionym ..................................................................................................................................................... 123

6.28 Boston Scientific ....................................................................................................................................... 124

6.29 BRAGI ....................................................................................................................................................... 125

6.30 Brilliantservice .......................................................................................................................................... 126

6.31 Broadcom ................................................................................................................................................. 127

6.32 Breitling .................................................................................................................................................... 128

6.33 Brother Industries .................................................................................................................................... 128



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6.34 BSX Insight ................................................................................................................................................ 129

6.35 BTS Bioengineering .................................................................................................................................. 130

6.36 Buhel ........................................................................................................................................................ 131

6.37 Cambridge Temperature Concepts .......................................................................................................... 132

6.38 Carre Technologies ................................................................................................................................... 133

6.39 Casio ......................................................................................................................................................... 134

6.40 Catapult .................................................................................................................................................... 135

6.41 Citizen ....................................................................................................................................................... 136

6.42 Cityzen Sciences ....................................................................................................................................... 137

6.43 Codoon ..................................................................................................................................................... 138

6.44 CommandWear ........................................................................................................................................ 139

6.45 ConnecteDevice ....................................................................................................................................... 140

6.46 Control VR ................................................................................................................................................ 141

6.47 CoolShirt Systems ..................................................................................................................................... 142

6.48 CSR plc ...................................................................................................................................................... 143

6.49 Cuff ........................................................................................................................................................... 144

6.50 Cyberdyne ................................................................................................................................................ 145

6.51 Dell ........................................................................................................................................................... 146

6.52 DorsaVi (ASX) ........................................................................................................................................... 147

6.53 Dreamtrap Commercials .......................................................................................................................... 148

6.54 EB Sport Group (Sync) .............................................................................................................................. 149

6.55 EdanSafe ................................................................................................................................................... 150

6.56 Ekso Bionics .............................................................................................................................................. 151

6.57 Electric Foxy ............................................................................................................................................. 152

6.58 Emotiv Systems ........................................................................................................................................ 153

6.59 Epson (Seiko Epson Corporation) ............................................................................................................. 154

6.60 Everfind .................................................................................................................................................... 155

6.61 EuroTech .................................................................................................................................................. 156

6.62 Evena Medical .......................................................................................................................................... 157

6.63 Exelis ........................................................................................................................................................ 158

6.64 EyeTap ...................................................................................................................................................... 159

6.65 FashionTEQ .............................................................................................................................................. 160



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6.66 Fat Shark................................................................................................................................................... 161

6.67 Fatigue Science ......................................................................................................................................... 162

6.68 Filip Technologies ..................................................................................................................................... 163

6.69 Finis .......................................................................................................................................................... 164

6.70 FitBark ...................................................................................................................................................... 165

6.71 Fitbit ......................................................................................................................................................... 166

6.72 Flyfit ......................................................................................................................................................... 167

6.73 Flextronics ................................................................................................................................................ 168

6.74 Fossil ......................................................................................................................................................... 169

6.75 Foxtel ........................................................................................................................................................ 170

6.76 Freescale Semiconductor ......................................................................................................................... 171

6.77 Fujitsu ....................................................................................................................................................... 172

6.78 Garmin...................................................................................................................................................... 173

6.79 GEAK (Shanda Group) .............................................................................................................................. 174

6.80 Gemalto .................................................................................................................................................... 175

6.81 GDC4S (General Dynamics C4 Systems) ................................................................................................... 176

6.82 Geopalz .................................................................................................................................................... 177

6.83 Ginger.io ................................................................................................................................................... 178

6.84 GlassUp .................................................................................................................................................... 179

6.85 GN Store Nord (Intelligent Headset) ........................................................................................................ 180

6.86 GoPro ....................................................................................................................................................... 181

6.87 Google ...................................................................................................................................................... 182

6.88 GOQii ........................................................................................................................................................ 183

6.89 HealBe ...................................................................................................................................................... 184

6.90 Heapsylon ................................................................................................................................................. 185

6.91 HereO ....................................................................................................................................................... 186

6.92 Hovding .................................................................................................................................................... 187

6.93 HP ............................................................................................................................................................. 188

6.94 HTC ........................................................................................................................................................... 189

6.95 Huawei ..................................................................................................................................................... 190

6.96 i4C Innovations ......................................................................................................................................... 191

6.97 ICEdot ....................................................................................................................................................... 192



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6.98 iHealth Lab ............................................................................................................................................... 193

6.99 iLOC Technologies .................................................................................................................................... 194

6.100 i’m SpA ................................................................................................................................................. 195

6.101 Imagination Technologies .................................................................................................................... 196

6.102 Imec ..................................................................................................................................................... 197

6.103 Immerz ................................................................................................................................................. 198

6.104 Ineda Systems ...................................................................................................................................... 199

6.105 InfinitEye .............................................................................................................................................. 200

6.106 Intel/Basis Science ............................................................................................................................... 201

6.107 InteraXon ............................................................................................................................................. 202

6.108 InvenSense ........................................................................................................................................... 203

6.109 iRhythm ................................................................................................................................................ 204

6.110 Instabeat .............................................................................................................................................. 205

6.111 Iron Will Innovations ............................................................................................................................ 206

6.112 Jabra (GN Netcom)............................................................................................................................... 207

6.113 Jawbone ............................................................................................................................................... 208

6.114 Jaybird .................................................................................................................................................. 209

6.115 Johnson & Johnson .............................................................................................................................. 210

6.116 Kapture ................................................................................................................................................ 211

6.117 Ki Performance Lifestyle ...................................................................................................................... 212

6.118 Kiwi Wearables .................................................................................................................................... 213

6.119 KMS Solutions ...................................................................................................................................... 214

6.120 Kreyos .................................................................................................................................................. 215

6.121 Kronoz (Mykronoz) .............................................................................................................................. 216

6.122 L-3 Communications ............................................................................................................................ 217

6.123 Lark Technologies ................................................................................................................................ 218

6.124 Laster Technologies ............................................................................................................................. 219

6.125 LeapFrog Enterprises ........................................................................................................................... 220

6.126 Lechal ................................................................................................................................................... 221

6.127 LG Electronics....................................................................................................................................... 222

6.128 Limmex................................................................................................................................................. 223

6.129 Lockheed Martin .................................................................................................................................. 224



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6.130 LogBar .................................................................................................................................................. 225

6.131 LOSTnFOUND ....................................................................................................................................... 226

6.132 Lumo BodyTech ................................................................................................................................... 227

6.133 Lumus ................................................................................................................................................... 228

6.134 Luxottica .............................................................................................................................................. 229

6.135 Mad Apparel ........................................................................................................................................ 230

6.136 Magellan (MiTAC Digital Corporation) ................................................................................................. 231

6.137 Martian Watches (SilverPlus) ............................................................................................................... 232

6.138 Matilde ................................................................................................................................................. 233

6.139 McLear ................................................................................................................................................. 234

6.140 Medtronic ............................................................................................................................................ 235

6.141 Melon ................................................................................................................................................... 236

6.142 Memi .................................................................................................................................................... 237

6.143 META .................................................................................................................................................... 238

6.144 Meta (MetaWatch) .............................................................................................................................. 239

6.145 Microsoft (Nokia) ................................................................................................................................. 240

6.146 MindStream ......................................................................................................................................... 241

6.147 Mio Global ........................................................................................................................................... 242

6.148 Misfit Wearables .................................................................................................................................. 243

6.149 Moff ..................................................................................................................................................... 244

6.150 Moov .................................................................................................................................................... 245

6.151 Moticon ................................................................................................................................................ 246

6.152 Motion Fitness ..................................................................................................................................... 247

6.153 Motorola Mobility/Lenovo .................................................................................................................. 248

6.154 Motorola Solutions .............................................................................................................................. 249

6.155 Mutalink ............................................................................................................................................... 250

6.156 Mutewatch........................................................................................................................................... 251

6.157 Myontec ............................................................................................................................................... 252

6.158 Narrative .............................................................................................................................................. 253

6.159 Neptune ............................................................................................................................................... 254

6.160 NeuroPro.............................................................................................................................................. 255

6.161 NeuroSky .............................................................................................................................................. 256



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6.162 Nike ...................................................................................................................................................... 257

6.163 Nintendo .............................................................................................................................................. 258

6.164 Nissan ................................................................................................................................................... 259

6.165 Nod ...................................................................................................................................................... 260

6.166 Notch Interfaces .................................................................................................................................. 261

6.167 NTT DoCoMo ........................................................................................................................................ 262

6.168 Nuance ................................................................................................................................................. 263

6.169 Nuubo .................................................................................................................................................. 264

6.170 NVIDIA .................................................................................................................................................. 265

6.171 NZN Labs .............................................................................................................................................. 266

6.172 O-Synce ................................................................................................................................................ 267

6.173 Oculus VR (Facebook) .......................................................................................................................... 268

6.174 Omate .................................................................................................................................................. 269

6.175 OMG Life .............................................................................................................................................. 270

6.176 Omron .................................................................................................................................................. 271

6.177 OMsignal .............................................................................................................................................. 272

6.178 Optalert ................................................................................................................................................ 273

6.179 Optinvent ............................................................................................................................................. 274

6.180 OrCam Technologies ............................................................................................................................ 275

6.181 OriginGPS ............................................................................................................................................. 276

6.182 Orpyx Medical Technologies ................................................................................................................ 277

6.183 Owlet Baby Care .................................................................................................................................. 278

6.184 Panasonic ............................................................................................................................................. 279

6.185 Pebble .................................................................................................................................................. 280

6.186 Perpetua Power Source Technologies ................................................................................................. 281

6.187 PFO Tech .............................................................................................................................................. 282

6.188 Phyode ................................................................................................................................................. 283

6.189 Plantronics ........................................................................................................................................... 284

6.190 Playtabase ............................................................................................................................................ 285

6.191 Polar Electro ......................................................................................................................................... 286

6.192 Pragmasystems .................................................................................................................................... 287

6.193 Preventice ............................................................................................................................................ 288



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6.194 Proteus Digital Health .......................................................................................................................... 289

6.195 PUSH Design Solutions ......................................................................................................................... 290

6.196 Qardio .................................................................................................................................................. 291

6.197 Qualcomm ........................................................................................................................................... 292

6.198 Razer .................................................................................................................................................... 293

6.199 Recon Instruments ............................................................................................................................... 294

6.200 Raytheon .............................................................................................................................................. 295

6.201 Rest Devices ......................................................................................................................................... 296

6.202 RHLvision Technologies ....................................................................................................................... 297

6.203 Ringblingz ............................................................................................................................................. 298

6.204 RSLSteeper ........................................................................................................................................... 299

6.205 Rufus Labs ............................................................................................................................................ 300

6.206 S3 ID ..................................................................................................................................................... 301

6.207 Salesforce.com ..................................................................................................................................... 302

6.208 Samsung ............................................................................................................................................... 303

6.209 Seiko..................................................................................................................................................... 305

6.210 SenseCore ............................................................................................................................................ 306

6.211 Sensible Baby ....................................................................................................................................... 307

6.212 Sensoplex ............................................................................................................................................. 308

6.213 Senso Solutions .................................................................................................................................... 309

6.214 Sentimoto ............................................................................................................................................ 310

6.215 Seraphim Sense.................................................................................................................................... 311

6.216 Shimmer ............................................................................................................................................... 312

6.217 ShotTracker .......................................................................................................................................... 313

6.218 Si14 ...................................................................................................................................................... 314

6.219 Sigmo ................................................................................................................................................... 315

6.220 Skully Helmets...................................................................................................................................... 316

6.221 Smarty Destination Technology ........................................................................................................... 317

6.222 Smarty Ring .......................................................................................................................................... 318

6.223 SMI (SensoMotoric Instruments) ......................................................................................................... 319

6.224 Snaptracs ............................................................................................................................................. 320

6.225 Somaxis ................................................................................................................................................ 321



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6.226 Sonitus Medical.................................................................................................................................... 322

6.227 Sonostar ............................................................................................................................................... 323

6.228 Sony ..................................................................................................................................................... 324

6.229 Sotera Wireless .................................................................................................................................... 325

6.230 SpotNSave ............................................................................................................................................ 326

6.231 Sqord .................................................................................................................................................... 327

6.232 Stalker Radar (Applied Concepts, Inc) .................................................................................................. 328

6.233 STMicroelectronics .............................................................................................................................. 329

6.234 Suunto .................................................................................................................................................. 330

6.235 sWaP (Dyal Trading) ............................................................................................................................. 331

6.236 Swatch Group ...................................................................................................................................... 332

6.237 T.Ware ................................................................................................................................................. 333

6.238 Tarsier .................................................................................................................................................. 334

6.239 TASER International ............................................................................................................................. 335

6.240 Technical Illusions ................................................................................................................................ 336

6.241 Thalmic Labs ........................................................................................................................................ 337

6.242 Theatro ................................................................................................................................................ 338

6.243 TI (Texas Instruments) ......................................................................................................................... 339

6.244 Timex Group ........................................................................................................................................ 340

6.245 TN Games ............................................................................................................................................. 341

6.246 Tobii Technology .................................................................................................................................. 342

6.247 TomTom ............................................................................................................................................... 343

6.248 Tomoon Technology ............................................................................................................................ 344

6.249 Touch Bionics ....................................................................................................................................... 345

6.250 TrackingPoint ....................................................................................................................................... 346

6.251 U-blox ................................................................................................................................................... 347

6.252 Validic (Motivation Science) ................................................................................................................ 348

6.253 Vancive Medical Technologies ............................................................................................................. 349

6.254 Vandrico ............................................................................................................................................... 350

6.255 Vergence Labs ...................................................................................................................................... 351

6.256 Vidcie (Looxcie) .................................................................................................................................... 352

6.257 Vigo ...................................................................................................................................................... 353



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6.258 VSN Mobil ............................................................................................................................................ 354

6.259 Vuzix ..................................................................................................................................................... 355

6.260 We:eX (Wearable Experiments) ........................................................................................................... 356

6.261 Wearable Intelligence .......................................................................................................................... 357

6.262 Weartrons Labs .................................................................................................................................... 358

6.263 Wellograph .......................................................................................................................................... 359

6.264 Withings ............................................................................................................................................... 360

6.265 WTS (Wonder Technology Solutions) .................................................................................................. 361

6.266 Xensr .................................................................................................................................................... 362

6.267 Xiaomi .................................................................................................................................................. 363

6.268 XOEye Technologies ............................................................................................................................. 364

6.269 Xybermind ............................................................................................................................................ 365

6.270 Yingqu Technology ............................................................................................................................... 366

6.271 Zeiss (Carl Zeiss AG) ............................................................................................................................. 367

6.272 Zephyr Technology............................................................................................................................... 368

6.273 Zepp Labs ............................................................................................................................................. 369

6.274 Zinc Software ....................................................................................................................................... 370

6.275 Zoll Medical Corporation ..................................................................................................................... 371

6.276 ZTE ....................................................................................................................................................... 372

7 Chapter 7: Conclusion & Strategic Recommendations .................................... 373

7.1 LTE Direct & its Impact on Wearable Technology ....................................................................................... 373

7.2 How is Wearable Technology Affecting the Wireless Chipsets Ecosystem ................................................. 374

7.3 How Big is the Wearable Applications Ecosystem? ..................................................................................... 375

7.4 Prospects of Standardization & Regulation ................................................................................................. 376

7.5 Prospects of Smartphone OEMs in the Wearable Technology Ecosystem ................................................. 377

7.6 Wireless Carriers: the Wearable Service Revenue Opportunity?................................................................ 378

7.7 Vendor Share: Who Leads the Market? ...................................................................................................... 379

7.8 The Rise of Wearable Startups .................................................................................................................... 380

7.9 Combining Fashion with Technology........................................................................................................... 380

7.10 Recommendations ................................................................................................................................... 381

7.10.1 Enabling Technology Providers ....................................................................................................... 381



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7.10.2 Wearable Device OEMs & Vertical Players ...................................................................................... 381

7.10.3 Wearable Application Developers ................................................................................................... 382

7.10.4 Wireless Carriers ............................................................................................................................. 383



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List of Figures

Figure 1: In-body Pill Camera ....................................................................................................................................... 34

Figure 2: Smartphone Installed Base by Region (Millions): 2014 - 2020 ..................................................................... 39

Figure 3: KOR-FX Haptic Feedback Vest ....................................................................................................................... 48

Figure 4: DARPA ULTRA-VIS Wearable Display Unit and Augmented Reality View ..................................................... 56

Figure 5: Wearable Technology Industry Roadmap .................................................................................................... 69

Figure 6: The Wearable Technology Value Chain ........................................................................................................ 71

Figure 7: Global Wearable Device Shipments (Millions of Units): 2014 - 2020 ........................................................... 74

Figure 8: Global Wearable Device Shipment Revenue ($ Million): 2014 - 2020 .......................................................... 74

Figure 9: Global Wearable Device Shipments by Form Factor (Millions of Units): 2014 - 2020 .................................. 75

Figure 10: Global Wearable Device Shipment Revenue by Form Factor ($ Million): 2014 - 2020 .............................. 75

Figure 11: Global Smart Band Shipments (Millions of Units): 2014 - 2020 ................................................................. 76

Figure 12: Global Smart Band Shipment Revenue ($ Million): 2014 - 2020 ................................................................ 76

Figure 13: Global Smart Watch Shipments (Millions of Units): 2014 - 2020 ............................................................... 77

Figure 14: Global Smart Watch Shipment Revenue ($ Million): 2014 - 2020 .............................................................. 77

Figure 15: Global Smart Glasses Shipments (Millions of Units): 2014 - 2020 .............................................................. 78

Figure 16: Global Smart Glasses Shipment Revenue ($ Million): 2014 - 2020............................................................. 78

Figure 17: Global Smart Clothing Shipments (Millions of Units): 2014 - 2020 ............................................................ 79

Figure 18: Global Smart Clothing Shipment Revenue ($ Million): 2014 - 2020 ........................................................... 79

Figure 19: Global Smart Jewelry Shipments (Millions of Units): 2014 - 2020 ............................................................. 80

Figure 20: Global Smart Jewelry Shipment Revenue ($ Million): 2014 - 2020 ............................................................ 80

Figure 21: Global Heads-up Display System Shipments (Millions of Units): 2014 - 2020 ............................................ 81

Figure 22: Global Heads-up Display System Shipment Revenue ($ Million): 2014 - 2020........................................... 81

Figure 23: Global Other Wearable Device Shipments (Millions of Units): 2014 - 2020............................................... 82

Figure 24: Global Other Wearable Device Shipment Revenue ($ Million): 2014 - 2020 ............................................. 82

Figure 25: Global Wearable Device Shipments by Vertical (Millions of Units): 2014 - 2020 ....................................... 83

Figure 26: Global Wearable Device Shipment Revenue by Vertical ($ Million): 2014 - 2020 ...................................... 83

Figure 27: Global Customer Wearable Device Shipments (Millions of Units): 2014 - 2020 ........................................ 84

Figure 28: Global Consumer Wearable Device Shipment Revenue ($ Million): 2014 - 2020 ...................................... 84

Figure 29: Global Healthcare Wearable Device Shipments (Millions of Units): 2014 - 2020 ...................................... 85

Figure 30: Global Healthcare Wearable Device Shipment Revenue ($ Million): 2014 - 2020 ..................................... 85

Figure 31: Global Retail & Hospitality Wearable Device Shipments (Millions of Units): 2014 - 2020 ......................... 86

Figure 32: Global Retail & Hospitality Wearable Device Shipment Revenue ($ Million): 2014 - 2020 ........................ 86



..

Figure 33: Global Military Wearable Device Shipments (Millions of Units): 2014 - 2020 ........................................... 87

Figure 34: Global Military Wearable Device Shipment Revenue ($ Million): 2014 - 2020 .......................................... 87

Figure 35: Global Public Safety Wearable Device Shipments (Millions of Units): 2014 - 2020 ................................... 88

Figure 36: Global Public Safety Wearable Device Shipment Revenue ($ Million): 2014 - 2020 .................................. 88

Figure 37: Global Wearable Device Shipments in Other Verticals (Millions of Units): 2014 - 2020 ............................ 89

Figure 38: Global Wearable Device Shipment Revenue in Other Verticals ($ Million): 2014 - 2020 ........................... 89

Figure 39: Wearable Device Shipments by Region (Millions of Units): 2014 - 2020 ................................................... 90

Figure 40: Wearable Device Shipment Revenue by Vertical ($ Million): 2014 - 2020 ................................................. 90

Figure 41: Asia Pacific Wearable Device Shipments (Millions of Units): 2014 - 2020 ................................................. 91

Figure 42: Asia Pacific Wearable Device Shipment Revenue ($ Million): 2014 - 2020 ................................................ 91

Figure 43: North America Wearable Device Shipments (Millions of Units): 2014 - 2020 ............................................ 92

Figure 44: North America Wearable Device Shipment Revenue ($ Million): 2014 - 2020 .......................................... 92

Figure 45: Western Europe Wearable Device Shipments (Millions of Units): 2014 - 2020 ......................................... 93

Figure 46: Western Europe Wearable Device Shipment Revenue ($ Million): 2014 - 2020 ........................................ 93

Figure 47: Eastern Europe Wearable Device Shipments (Millions of Units): 2014 - 2020 ........................................... 94

Figure 48: Eastern Europe Wearable Device Shipment Revenue ($ Million): 2014 - 2020 ......................................... 94

Figure 49: Middle East & Africa Wearable Device Shipments (Millions of Units): 2014 - 2020 .................................. 95

Figure 50: Middle East & Africa Wearable Device Shipment Revenue ($ Million): 2014 - 2020 ................................. 95

Figure 51: Latin & Central America Wearable Device Shipments (Millions of Units): 2014 - 2020 ............................. 96

Figure 52: Latin & Central America Wearable Device Shipment Revenue ($ Million): 2014 - 2020 ............................ 96

Figure 53: Global Wireless Chipset Shipments for Wearable Devices (Millions of Units): 2014 - 2020 .................... 374

Figure 54: Global Wearable Application Ecosystem Revenue by Vertical ($ Million): 2014 - 2020 .......................... 375

Figure 55: Global Wearable Driven Wireless Carrier Service Revenue by Form Factor ($ Million): 2014 - 2020 ...... 378

Figure 56: Wearable Technology Market Share (%) .................................................................................................. 379



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1 Chapter 1: Introduction

1.1 Executive Summary

While wearable technology has been utilized in vertical sectors such as the

military and healthcare for many years, ongoing advances have triggered a major

resurgence of the concept, particularly among the consumer community. Key

enabling technologies including low cost sensors, wireless connectivity, active

materials and energy have converged to make wearable technology mainstream.

With the continued miniaturization of enabling technologies, wearable devices

have hit the mass market in a diverse variety of form factors, ranging from glasses

to even jewelry.

Driven by the ability to interconnect with key modern trends of healthcare,

fitness, messaging and socialization, the wearable technology ecosystem is

attracting significant levels of interest. Companies as varied as smartphone OEMs,

wireless carriers, health insurers and retailers are circling the ecosystem alongside

tiny startups, all vying for a stake.

SNS Research estimates that by 2015, wearable devices shipments will surpass 90

Million and will account for nearly $20 Billion in revenue. The market is further

expected to grow at a CAGR of nearly 40% over the next six years.

The “Wearable Technology Ecosystem: 2014 – 2020 – Opportunities, Challenges,

Strategies, Industry Verticals & Forecasts” report presents an in-depth

assessment of the wearable technology ecosystem including key market drivers,



..

challenges, investment potential, consumer & vertical market opportunities, use

cases, future roadmap, value chain, case studies, vendor market share and

strategies. The report also presents forecasts for wearable device shipments and

revenue from 2014 through to 2020. The forecasts are further segmented for 7

device form factor submarkets, 6 vertical markets, 6 regions and 73 countries.

The report comes with an associated Excel datasheet suite covering quantitative

data from all numeric forecasts presented in the report.



..

1.2 Topics Covered

The report covers the following topics:

Wearable technology ecosystem

Market drivers and barriers

Enabling technologies for wearable devices

Prospects of standardization and regulation for wearable technology

Wearable technology industry roadmap and value chain

Assessment of vertical market opportunities and use cases for consumer,

healthcare, retail & hospitality, military, public safety and 8 other verticals

Case studies of wearable technology deployments

Company profiles and strategies of 276 wearable technology ecosystem

players

Wearable device vendor market share

Prospects of smartphone OEMs in the wearable technology ecosystem

LTE Direct and its impact on wearable technology

Strategic recommendations for enabling technology providers, wearable

device OEMs, vertical market players, application developers and wireless

carriers

Market analysis and forecasts from 2014 till 2020



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1.3 Historical Revenue & Forecast Segmentation

Market forecasts on are provided for each of the following submarkets

and their subcategories:

- Wearable device shipments and revenue

- Wearable application ecosystem revenue

- Wearable driven wireless carrier service revenue

- Vertical Submarkets

Consumer

Healthcare

Retail & Hospitality

Military

Public Safety

Others

- Form Factor Submarkets

Smart Bands

Smart Watches

Smart Glasses

Smart Clothing

Smart Jewelry

Heads-up Displays

Others

- Regional Markets

Asia Pacific

Eastern Europe



..

Latin & Central America

Middle East & Africa

North America

Western Europe

- Country Markets

73 Country level markets: Algeria, Argentina, Australia,

Austria, Bangladesh, Belarus, Belgium, Bolivia, Bosnia &

Herzegovina, Brazil, Bulgaria, Canada, Chile, China,

Colombia, Croatia, Czech Republic, Denmark, Ecuador,

Egypt, Finland, France, Germany, Greece, Hong Kong,

Hungary, India, Indonesia, Ireland, Israel, Italy, Japan,

Kenya, Luxembourg, Malaysia, Mexico, Morocco,

Netherlands, New Zealand, Nigeria, Norway, Pakistan,

Paraguay, Peru, Philippines, Poland, Portugal, Qatar,

Romania, Russia, Saudi Arabia, Serbia, Singapore,

Slovakia, South Africa, South Korea, Spain, Sudan,

Sweden, Switzerland, Taiwan, Tanzania, Thailand, Tunisia,

Turkey, UAE, UK, Ukraine, Uruguay, USA, Uzbekistan,

Venezuela and Vietnam



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1.4 Key Questions Answered

The report provides answers to the following key questions:

How big is the wearable technology ecosystem?

How is the ecosystem evolving by segment and region?

What will the market size be in 2020 and at what rate will it grow?

What trends, challenges and barriers are influencing its growth?

Who are the key wearable device vendors and what are their strategies?

How much are vertical enterprises investing in wearable devices?

What opportunities exist for wireless chipset suppliers in the wearable

technology ecosystem?

How can wireless carriers capitalize on the growing popularity of smart

glasses and other wearable devices?

Which countries, regions and verticals will see the highest percentage of

wearable device shipments?

How big is the wearable applications ecosystem?



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1.5 Key Findings

The report has the following key findings:

By 2015, wearable device OEMs will pocket nearly $20 Billion from device

shipment revenues

Wearable device shipments are further expected to grow at a CAGR of

nearly 40% over the next 6 years, eventually accounting for 340 Million

device shipments by the end of 2020

Wireless carriers are increasingly integrating wearable devices within their

M2M and IoT strategies

Wearable devices will help wireless carriers drive over $71 Billion in

additional service revenue by the end of 2020, following a CAGR of 95%

between 2014 and 2020

The wearable applications ecosystem will account for nearly $850 Million

in revenue by the end of 2015

Driven by ongoing innovation and crowdfunding campaigns, SNS Research

estimates that investors are expected to pour over $700 Million into

wearable technology startups in 2014

The market is ripe for acquisitions of pure-play wearable technology

startups, as competition heats up between consumer and vertical centric

OEMs

Nearly 50% of all wearable devices shipped in 2020 will support

embedded cellular connectivity. This represents a $1.1 Billion opportunity

for wireless chipset suppliers



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1.6 Methodology

The contents of this report have been accumulated by combining information

attained from a range of primary and secondary research sources. In addition to

analyzing official corporate announcements, policy documents, media reports,

and industry statements, SNS Research sought opinions from leading industry

players within the wearable technology ecosystem to derive an unbiased,

accurate and objective mix of market trends, forecasts and the future prospects of

the industry between 2014 and 2020.



..

1.7 Target Audience

The report targets the following audience:

Wearable device OEMs and startups

Smartphone, mobile device & consumer electronics OEMs

Wireless chipset suppliers

Sensor, display & enabling hardware providers

Wearable device software vendors

Mobile OS vendors

Wireless carriers/MNOs (Mobile Network Operators)

Vertical enterprises in healthcare, retail, hospitality, military, public safety

and other verticals

Investors



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1.8 Companies & Organizations Mentioned

The following companies and organizations have been reviewed, discussed or

mentioned in the report:

270 Vision

FDA (U.S. Food and Drug Administration)

McLear

SenseCore

3L Labs Filip Technologies Medtronic Sensible Baby

4DForce Finis Melon Senso Solutions

4iii Innovations FitBark Memi Sensoplex

9Solutions Fitbit META Sentimoto

Active Mind Technology Flextronics Meta (MetaWatch) Seraphim Sense

Adidas Flyfit Microsoft (Nokia) Shimmer

AgaMatrix Fossil MindStream ShotTracker

AirType Foxtel Mio Global Si14

Amazon Freescale Semiconductor Misfit Wearables Sigmo

AMD (Advanced Micro Devices) Fujitsu MiTAC International SITA

Amiigo Garmin Moff Skully Helmets

Animas GDC4S (General Dynamics C4 Systems) Moov

Smarty Destination Technology

Apple GEAK (Shanda Group) Moticon Smarty Ring

ARA (Applied Research Associates) Gemalto Motion Fitness SMI (SensoMotoric Instruments)

Archos Geopalz Motion Metrics International Corporation Snaptracs

ARM Holdings Georgia Institute of Technology

Motorola Mobility/Lenovo Somaxis

Asahi Kasei Group Ginger.io Motorola Solutions Sonitus Medical

Atheer Labs Given Imaging Mutalink Sonostar

Atlas Wearables GlassUp Mutewatch Sony

Augmendix GN Store Nord (Intelligent Headset) Myontec Sotera Wireless

Avegant Google Narrative SpotNSave

BAE Systems GoPro Neptune Sqord

Baidu GOQii NeuroPro Stalker Radar (Applied Concepts, Inc)

BI (GEO Group) HealBe NeuroSky STMicroelectronics

BIA Sport Heapsylon Nike Suunto



..

Bionym HereO Nintendo sWaP (Dyal Trading)

Biosensics Hovding Nissan Swatch Group

BIT (Blue Infusion Technologies) HP Nod T.Ware

Bluetooth Special Interest Group HTC Nokia Tarsier

BodyMedia Huawei Notch Interfaces TASER International

Boston Scientific i’m SpA NTT DoCoMo Technical Illusions

BRAGI i4C Innovations Nuance Thalmic Labs

Breitling

IAMAS (Japanese Institute of Advanced Media Arts and Sciences) Nuubo

The Walt Disney Company

Brilliantservice ICEdot NVIDIA Theatro

Broadcom iHealth Lab NZN Labs TI (Texas Instruments)

Brother Industries iLOC Technologies Oculus VR (Facebook) Timex Group

Brunel University Imagination Technologies Omate Tissot

BSX Insight Imec Omega SA TN Games

BTS Bioengineering Immerz OMG Life Tobii Technology

Buhel Ineda Systems Omron Tomoon Technology

Cambridge Temperature Concepts InfinitEye OMsignal TomTom

Carre Technologies Instabeat Optalert Tory Burch

Casio Intel/Basis Science Optinvent Touch Bionics

Catapult InteraXon OrCam Technologies TrackingPoint

Cisco Intersections OriginGPS U.S. Department of Defense

Citizen InvenSense Orpyx Medical Technologies U-blox

Cityzen Sciences iRhythm O-Synce Universities of Glasgow

Codoon Iron Will Innovations Owlet Baby Care University of Leeds

CommandWear

ITAMCO (Indiana Technology and Manufacturing Companies) Palomar Health University of Reading

ConnecteDevice ITT Corporation Panasonic University of Strathclyde

Control VR Jabra (GN Netcom) Paris Miki Holdings Validic (Motivation Science)

CoolShirt Systems Jawbone Parvus Vancive Medical Technologies

Creaholic Jaybird Pebble Vandrico

CSR plc Johnson & Johnson Pepsi Vergence Labs

Cuff Kapture Perpetua Power Source Technologies Vidcie (Looxcie)



..

Cyberdyne Ki Performance Lifestyle PFO Tech Vigo DARPA (Defense Advanced Research Projects Agency) Kiwi Wearables Philips Virgin Atlantic

Dell KMS Solutions Phyode VSN Mobil

Diesel Kreyos Plantronics Vuzix

DKNY Kronoz (Mykronoz) Playtabase We:eX (Wearable Experiments)

DorsaVi (ASX) L-3 Communications Polar Electro Wearable Intelligence

Dreamtrap Commercials L-3 Mobile-Vision Pragmasystems Weartrons Labs

Durex Lark Technologies Preventice Wellograph

E Ink Holdings Laster Technologies Proteus Digital Health Withings

EB Sport Group (Sync) LeapFrog Enterprises PUSH Design Solutions WTS (Wonder Technology Solutions)

EdanSafe Lechal Qardio Xensr

Ekso Bionics LG Electronics Qualcomm Xiaomi

Electric Foxy Limmex Raytheon XOEye Technologies

Emotiv Systems Lockheed Martin Razer Xybermind

Epson (Seiko Epson Corporation) LogBar Recon Instruments Yingqu Technology

EuroTech LOSTnFOUND Rest Devices Zeiss (Carl Zeiss AG)

Evena Medical Loughborough University RHLvision Technologies Zephyr Technology

Everfind Lumo BodyTech Ringblingz Zepp Labs

Exelis Lumus RSLSteeper Zinc Software

EyeTap Luxottica Rufus Labs Zoll Medical Corporation

Facebook Mad Apparel S3 ID ZTE

FashionTEQ Magellan (MiTAC Digital Corporation) Salesforce.com

Fat Shark Martian Watches (SilverPlus) Samsung

Fatigue Science Matilde Seiko



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Copyright SNS Research Ltd, 2014. All rights reserved.

This material is subject to the laws of copyright and is restricted to registered

license-holders who have entered into a Corporate, a Multi-User or a Single-User

license agreement with SNS Research Ltd. It is an offence for the license-holder to

make the material available to any unauthorized person, either via e-mail

messaging or by placing it on a network.

All SNS research reports & databases are intended to provide general information

and strategic insights only, and they do not constitute, nor are they intended to

constitute, investment advice. SNS Research and its employees disclaim all and

any guarantees, undertakings and warranties, whether expressed or implied, and

shall not be liable for any loss or damage whatsoever, and whether foreseeable

or not, arising out of, or in connection with, any use of or reliance on any

information, statements, opinions, estimates or forecasts contained in the

reports.



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Page 39

2.4 Market Growth Drivers

Described below are some of the key drivers for the wearable technology market.

2.4.1 Proliferation of Smartphones

The proliferation of smartphones is widely seen as a major driving force behind

wearable technology. In 2014 alone, the installed base of smartphones stands at

over 2.4 Billion, representing global penetration of nearly 35%. The penetration is

further expected to increase to over 60% by the end of 2020.

Figure 2: Smartphone Installed Base by Region (Millions): 2014 - 2020

Source: SNS Research

Given their mass market adoption, smartphones often serve as the wireless

connectivity hub for most wearable devices (at least for the time being). Wearable

form factors such as smart watches or smart glasses are thus widely seen as

companion devices for smartphones. By offloading processing and connectivity

onto a smartphone, the cost of a wearable device is considerably cheaper, even

more so considering the price of sensors keeps dropping.

In fact, the emergence of a consumer centric wearable technology ecosystem has

revived a new race for smartphone hardware capabilities. In order to serve as a

0

1,000

2,000

3,000

4,000

5,000

2014 2015 2016 2017 2018 2019 2020

Western Europe

North America

Middle East & Africa

Latin & Central America

Eastern Europe

Asia Pacific



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Page 56

3.4.3 Enhancing Situational Awareness in the Battlefield

Being aware of one’s surroundings is a major challenge for soldiers on chaotic

battlefields. Wearable technology can greatly assist with this, by combining a

virtual display overlay with information from reconnaissance and other soldiers.

As part of its ULTRA-VIS2 program, DARPA3 has developed a low-powered, light

weight wearable display system for dismounted ground troops. The displays can

significantly enhance situational awareness by displaying a range of non-line-of-

sight information in front of the soldier’s eyes. The augmented reality view

includes information such as the location of nearest friendly units, distance to

objective, and satellite images of the area.

Figure 4: DARPA ULTRA-VIS Wearable Display Unit and Augmented Reality View

Source: Breaking Media, Applied Research Associates

A similar display unit from Raytheon allows military pilots to see, feel and hear

everything going on around their helicopter or plane without necessarily having to

2 Urban Leader Tactical Response, Awareness and Visualization

3 Defense Advanced Research Projects Agency



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Page 57

be physically seated in the cockpit. The Aviation Warrior display unit provides

pilots a 360-degree view by using the airplane’s sensors and overlaying it on a

translucent screen attached to the helmet.

3.4.4 Enabling Battlefield Mobility

Wearable technology can also help improve mobility in the battlefield. For

example, a solar energy kit developed by universities4 in the United Kingdom

enables the military uniform to use photovoltaic cells to harness the sun’s energy,

as well as thermoelectric devices to turn temperature differentials into electricity

The energy kit significantly alleviates the weight5 of traditional backpacks

containing batteries that soldiers have to carry to have power supply for different

devices. In addition, by eliminating the need to return to base for recharging, the

solar pack also increases the potential range and duration of military operations.

3.4.5 Facilitating Communications with Military Dogs

Wearable technology can also facilitate communications with military dogs. For

example, using the FIDO6 system, a bomb-sniffing dog could be trained to activate

a specific kind of sensor for a specific kind of bomb, instantly alerting its trainer to

the threat. The device's audio processor can also relay silent signals from the

handler to the animal, which could allow secure communications between

4 Universities of Glasgow, Loughborough, Strathclyde, Leeds, Reading and Brunel

5 Batteries can make up more than 10 percent of the equipment that soldiers carry

6 The FIDO (Facilitating Interactions for Dogs with Occupations) system developed by Georgia Institute of

Technology allows trained dogs to communicate with their handlers through wearable technology. The system has several different sensors that can be activated by biting, tugging, or simply proximity, each corresponding to a different sound or notification for the handler



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Page 71

4.2 The Wearable Technology Value Chain

The wearable technology value chain is complex with many significant players

across different segments of the market, including enabling technology providers,

device OEMs, application developers and wireless carriers.

Consumers & Vertical

Enterprises

Enabling Technology Ecosystem

Chipset Vendors

Applications Ecosystem

Wearable Device OEM Ecosystem

Sensor, Display & Enabling

Hardware Providers

OS & Software Providers

Smartphone, Tablet &

Consumer Electronics OEMs

Vertical Centric OEMs

Fashion & Watch OEMs

Wireless Carriers &

the Connectivity Ecosystem

Figure 6: The Wearable Technology Value Chain


4.2.1 Enabling Technology Ecosystem

The segment of the wearable technology ecosystem includes chipset vendors,

OS/software providers, sensor, display and enabling hardware component

providers.

4.2.1.1 Chipset Vendors

This segment of the value chain provides processing and low powered wireless

technology chipsets optimized for wearable form factor products, such as wrist



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Page 303

6.208 Samsung

The Samsung Group is a South Korean multinational conglomerate company

headquartered in Samsung Town, Seoul. Samsung Electronics, the company’s

flagship subsidiary, supplies a wide range of consumer products12 and

semiconductor devices13. Samsung isn't shy about flooding the mobile market

with countless smartphones and tablets. The company has now taken a similar

stance when it comes to its wearable device portfolio.

As one of the first vendors to trial the market, Samsung is widely considered to be

a pioneer in wearable technology. In Q3’2013, Samsung announced its first

venture into the world of wearable devices, with the Galaxy Gear smart watch.

The company has since launched a multitude of smart watches, designed to work

as companion devices to Samsung smartphones, allowing users to check their

emails, receive texts, listen to music and take pictures.

In Q2’2014, Samsung expanded its smart watch portfolio with the launch of Gear

Live. Build upon Google’s Android Wear platform, the smart watch is designed to

provide targeted information and suggestions in real-time. Unlike Samsung's

previous smart watches, the smart watch is compatible with other Android

handsets besides specific Samsung models. It also features a heart rate sensor, a

major differentiator from other mobile OEM rivals.

During the same quarter, Samsung also unveiled Simband, a reference design for

future health centric wearable devices. The Simband contains a modular array of

sensors to track things such as heart rate and oxygen levels, and a snap-on battery

12

Including smartphones, tablets, computers and flat-panel TVs 13

Such as application processors, DRAM and flash memory



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Page 304

that can be charged without having to remove the device. Powered by a 1GHz

dual-core ARM A7 processor, the design supports WiFi and Bluetooth for wireless

connectivity.

The Simband reference design is supported by the SAMI14 platform, a cloud-based

back-end to collect and sort through the data collected by these devices and other

health sensors. From SAMI, developers can access the data and leverage it to

create new applications.

As an established smartphone and tablet OEM, Samsung is considered to be one

of the most preferred brands for buying wearable devices. As of Q2’2014,

Samsung maintains a 50% market share in the mobile OS15 powered smart watch

market.

14

Samsung Multimodal Architecture Interaction 15

Considering non-mobile OS powered smart watches into account, Samsung’s market share stands at 26%



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Page 378

7.6 Wireless Carriers: the Wearable Service Revenue

Opportunity?

Wearable technology represents a lucrative opportunity for wireless carriers in

terms of service revenue. Consumer wearable devices such as smart glasses are

heavily oriented to feed off data from online sources for a variety of

applications16. These data intensive applications can significantly increase wireless

carrier service revenue, both directly17 and indirectly18. Wearable devices can thus

become as much a part of a carrier’s offering as smartphones and tablets.

Figure 55: Global Wearable Driven Wireless Carrier Service Revenue by Form

Factor ($ Million): 2014 - 2020


SNS Research estimates that wearable devices will help wireless carriers drive

over $71 Billion in service revenue by the end of 2020, following a CAGR of 95%

between 2014 and 2020. While consumer devices will represent a major 16

Such as multimedia (video/audio), navigation/mapping, web browsing and email 17

Through cellular enabled wearable devices. Direct revenue streams are expected to develop through the increasing use of embedded cellular connectivity within wearable devices 18

By streaming data through companion smartphones or tablets (via Bluetooth or another short range technology)

$0

$20,000

$40,000

$60,000

$80,000

2014 2015 2016 2017 2018 2019 2020

Other Devices

Smart Glasses

Smart Watches

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