Wearable Report 2014

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Ryan Kuhel

Transcript of Wearable Report 2014

Is 2014 the Year of Wearables?

Table of ContentsInternet of Things (IoT)3Wearable Technology is a sub-category of IoT3The Recent Proliferation of Wearable Technology3Poll: How do you want to wear technology?3Investors and Accelerators5$570 Million in Venture Funding5Wearable Technology Accelerators5Techstars and R/GA Accelerator5SparkLabs Accelerator5Samsung Accelerator5Survey of Wearable Devices6XOEye6Limitations6Strengths6Google Glass7Limitations7Strengths7Oculus Rift8Limitations8Strengths8Fitness Trackers and Smart Watches9Mixed Reviews at the Consumer Electronic Show (CES) 20139Watches as fitness trackers9Nike Fuel Band10Jawbone Up2411Fitbit Force12Samsung Galaxy Gear Smart Watch (Samsung Gear)13Opportunity14Popular Devices Comparison Table15Fashion and Wearables16Accelerators17NY Fashion Tech Lab17Fashion Technology Accelerator (San Francisco)18Google Glass Experimenting with new Frames19CuteCircuit20MEMI Bracelet21Everpurse22Oakley Airwave23Mimo Wearable Sensors for Infants24Conclusion and Opportunity24Payments, Mobile Phones, and Wearable Technology25Opportunity for Metamorphic Ventures26Commercial Viability of Wearable Devices26Wearable Technology Platforms27Concluding Thoughts27

Internet of Things (IoT)In whats called the Internet of Things, sensors and actuators embedded in physical objectsfrom roadways to pacemakersare linked through wired and wireless networks, often using the same Internet Protocol (IP) that connects the Internet.-McKinsey Insights Wearable Technology is a sub-category of IoT Wearable technology is a means of capturing data with wearable sensors to influence consumer behavior and business decisions. When a customers buying preferences are captured in real time, at a specific location (using granular location data from Bluetooth Low Energy technology), dynamic pricing may increase the odds of a purchase. Employees in the manufacturing plant can use an industrial eyewear-computing platform to share a first person point of view with managers at the office and improve operational efficiency. Independent software developers can create and sell immersive gaming environments for augmented reality devices. These developments create new opportunities for technologists, entrepreneurs, and investors. The Recent Proliferation of Wearable Technology According to Juniper research, mobile smart wearable device shipments are estimated to approach 130 million by 2018.[endnoteRef:1] Analysts from Forrester Research predict that wearable devices have enormous potential for uses in health, fitness, navigation, social networking, and media. These optimistic reports also note social and legal barriers to the growth of wearable technology, most notably privacy. [1: "Press Release: Mobile Smart Wearable Device Shipments to Approach 130 Million by 2018, Juniper Research Finds."Press Release: Mobile Smart Wearable Device Shipments to Approach 130 Million by 2018, Juniper Research Finds. N.p., n.d. Web. 31 Mar. 2014.]

Poll: How do you want to wear technology?A survey conducted by the North American Technographics asked consumers how exactly they would like to wear technology. The graphic below illustrates the responses.

Investors and Accelerators$570 Million in Venture Funding According to CBinsights, 30 venture backed wearable technology companies have raised over $570 million in 2013. [endnoteRef:2] The categories of wearable technology include augmented reality and personal display, body monitoring for health and fitness, brain monitoring, controlled computing, and point of view wearable cameras. [2: "Wearable Technologies: $570M Raised by More Than 30 Venture Capital-backed Companies."CB Insights Blog. N.p., n.d. Web. 31 Mar. 2014.]

Wearable Technology Accelerators Business accelerators are also being formed to incubate startups building wearable technologies.Techstars and R/GA AcceleratorTechStars and the digital agency R/GA, creator of the Nike Fuel Band, launched an accelerator that has ten companies that represent connected devices spanning a diverse array of verticals including healthcare, the connected home, child-care, retail, and navigation. SparkLabs Accelerator Founded in 2012, the SparkLabs Accelerator focuses on startup companies from the online gaming, mobile, ecommerce, and digital media sectors. The Seoul-Based accelerator latest class includes wearable tech and mobile game makers. The mentorship-driven program is three months in length and provides funding, office space, a structured program and access to a network of entrepreneurs, venture capitalists, angel investors and executives. SparkLabs seeks to contribute to and help develop South Koreas startup ecosystem.Samsung AcceleratorThe Samsung Accelerator is providing capital, administrative and operational support to develop products and services that serve to be a connective tissue between Samsungs various devices. Survey of Wearable Devices XOEye

XOEye is an industrial eyewear-computing platform that allows for a shared, first person point of view experience. XOEye Vision Telepresence will provide an enterprise communications infrastructure for managers and employees. The XOEye can share both video and audio in real-time and allows a manager to oversee operations from any terminal. Limitations There are no online reviews for XOEyes wearable device. A company would need to spend time testing the product.StrengthsXOEye can help managers have more information about what is happening on the ground. This can reduce risk, increase operational efficiency, and improve internal communication.

Google GlassGoogle Glass aims to free data from desktop computers, phones, and tablets by placing the data in the users field of vision. Glass has a 5-megapixel camera, bone conduction transducer enabled audio, and 12GB of usable memory. Glass can be controlled both with voice recognition software, that utilizes the built-in microphone, and the touchpad on the arm of the frame. The device syncs to Google Drive and has Bluetooth and Wifi built-in.

Limitations Taking pictures and capturing video with Glass is sometimes considered socially unacceptable behavior. Many Glass critics argue that capturing pictures and video with Glass compromises peoples privacy. Google has responded to this criticism by creating a guide to help users wear glass without breaking certain social expectations.

Glass was built for short bursts of information and interactions that allow you to quickly get back to doing the other things you love. If you find yourself staring off into the prism for long periods of time youre probably looking pretty weird to the people around you. So dont read War and Peace on Glass. Things like that are better done on bigger screens.[endnoteRef:3] [3: "Explorers."Glass-explorers. N.p., n.d. Web. 30 Mar. 2014.]

StrengthsDevelopers can leverage the Glass Developer Kit (GDK) to build immersive environments that will trigger certain events based on a users granular location. This creates a unique opportunity for developers to build games and applications for Glass. As a result, companies will be able to send coupons, discounts, and relevant information to consumers through these applications. Oculus RiftThe Oculus Rift is a virtual reality headset that lets users experience more immersive games, movies, and virtual environments. The stereoscopic view creates the perception of depth and the inertial measurement unit (IMU) tracks the users head movements.

Limitations The Oculus Rift is currently only available for developers. Developers can purchase the Oculus Rift and a software development kit for $300 and begin building immersive game experiences. StrengthsDevelopers are excited to spend $300 to begin building augmented reality game experiences with Oculus Rifts custom software development kit (SDK). Oculus Rift has received rave reviews from major technology publications including CNET, VERGE, WIRED, and VentureBeat. In addition to gaming, Oculus Rift also presents opportunities to create more immersive 3D movie experiences. Facebook recently acquired Oculus Rift for $2 billion.

Fitness Trackers and Smart Watches Fitness trackers use built-in pedometers to measure athletic activity and have emerged as a significant category of wearable technology. According the independent analyst company Canalys, 1.6 million smart bands were shipped in H2 2013 and over 17 million wearable bands are forecast to ship in 2014. Fitbit led in the fitness-tracker category, with over 50% market share in the second half of the year. [endnoteRef:4] [4: "1.6 Million Smart Bands Shipped in H2 2013."Canalys. N.p., n.d. Web. 31 Mar. 2014.]

Mixed Reviews at the Consumer Electronic Show (CES) 2013 Many fitness trackers share similar features. While the proliferation of fitness trackers is significant, critics of the most recent Consumer Electronic Show suggest that fitness trackers are unimaginative. Pedometers like LGs Life Band, Garmins fitness band, Fitbits Jawbone, Nike Fuel, and the Razor Nabu all measure daily steps and use this data to create a game where users compete with each other to be more active. Watches as fitness trackers Smart-watches at the CES share many of same features with fitness trackers. The Sapphire Wellness Watch, Salutron LifeTrak, Hot Watch, ZTE BlueWatch and Casio STB-1000 Sports Gear track a users daily steps with built-in pedometers. Fitness bands, like the Razer Nabu and LG Lifeband Touch look like Nike Fuel Bands, but also receive incoming phone calls and messages. The overlap is important because fitness trackers and smart watches will eventually become one category.

Nike Fuel Band The Nike Fuel Band is a wristband, pedometer, and watch that tracks and displays a users daily athletic activity. The pedometer tracks daily steps and calories and combines that information into a single score called Nike Fuel Point