Sample - Wearable Electronics Product Market Analysis 2014-2024 - A Global Perspective

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WEARABLE ELECTRONICS

PRODUCT (Smartwatch, Wrist Band,

smartglasses, Augmented/Virtual

Reality HUD/HMD, Ear Computer,

Activity Monitors, Smart Textiles, E-

textiles & Others Wearable Computing

Device) MARKET ANALYSIS, 2014-2024 : A Global Perspective

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BIS Research -:Sample Page:- 2

Wearable Electronics Product Market Analysis, 2014-2024

: A Global Perspective

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1 MARKET OVERVIEW ( QUANTITATIVE)

1.1 PRODUCT-WISE MARKET STATISTICS SNAPSHOT

The wearable product market is broadly segmented into three major divisions- hand-worn,

head-worn and body-worn. The figure below presents the expanding market size of the

segments. The hand-worn product market includes smartwatches, wrist-band (smartphones

enabled) and ring-wear. Head-worn devices include smartglasses, AR/VR enabled HUD/HMDs,

and ear-worn computers. All other device including smart textiles and e-textiles are considered

as body-worn product.

FIGURE 1

WEARABLE PRODUCT MARKET EXPANSION SNAPSHOT

($XX million)

2013

($XX million)

2013

($XX million)

2013

($XX billion ) 2024

• Wearable Market

Device/Product

($XX billion ) 2024

• Hand-Worn Devices

($XX billion ) 2024

• Body-Worn Devices

($XX Billion) 2024

• Head-Worn Devices

($XX billion)

2013

Sample

Source: BIS Research

The subsequent section presents the market value for each product segment.




1.1.1 HEAD-WORN PRODUCT MARKET VALUE & YEAR-ON-YEAR GROWTH SNAPSHOT

1.1.1.1 Other head-worn product market value & year -on-

year growth snapshot

FIGURE 2

OTHER HEAD-WORN PRODUCT MARKET VALUE ($MILLION)

& Y-O-Y GROWTH (2014-2024)

XXX%

XXX%

XXX%

XXX%

XXX%

XXX%

XXX%

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

2014 2016 2018 2020 2022 2024

Total Market Value YoY

Sample


The other head-worn products such as headsets have not been commercialized yet and are

expected to account for over $XXX million in 2014. The market is estimated to grow at a CAGR

of over XXX% from 2014 to 2024 and reach $XXX billion market value in 2024.




2 MARKET ENTROPY

2.1 COMPETITIVE BENCHMARKING

FIGURE 3

BIS RESEARCH ACTIVITY BENCHMARK

Sample


Based on our calculations we have arrived at weighted score for each identified key player. The

weighted scores have been segmented into three clusters.

2.1.1 CLUSTER 1

The first cluster includes companies having weighted score of more than XXX. It is expected

that with various product launches and expansion in their business portfolio the companies will

grow and have a promising impact on the wearable market in the coming years.




3 MARKET DYNAMICS

3.1 MARKET DRIVERS

3.1.1 SHIFT OF FOCUS TOWARDS COMMUNICATION, NETWORKING, POSITIONING, & RECOGNITION

TECHNOLOGIES IN WEARABLES

The existence of wearable products has been around for more than four decades now. But

since the last decade wearables are being launched in the market and are gaining consumer

acceptability. The improvement in technologies such as communication, networking, image,

gesture, and speech & voice recognition has made wearable computing an appealing option.

Gradually, the focus on these technologies is increasing and the industry is looking towards

customizing these technologies to suit wearer’s needs and aesthetics.

The first generation of wearable devices largely employed Bluetooth for connectivity with

smartphones and other internet enabled portable devices. However, with the technological

advancements and limitations of the above protocol in terms of range and power consumption,

other technologies such as Wi-Fi, Low energy Bluetooth (BLE), and near field communication

(NFC) are being adopted by the companies. Not only they use lesser power but can be used for

wider ranges of connectivity.

Moreover, commonly used GPS and digital compass are also being incorporated in the design

of wearable products. These positioning components make the product useful for a variety of

applications in fields ranging from healthcare to military, where location tracking is of critical

importance.

Recognition technologies such as voice recognition and gesture recognition are becoming

increasingly popular in wearable devices. With the help of these applications, drivers can

navigate to their destinations, workers can control warehouse inventory, doctors can automate

medical transcription processes, lawyers can build their cases with e-discovery products,

homeowners can control their environmental and security systems and users of smart devices

can access applications by voice commands.




Companies across all sectors and from every part of the voice recognition supply chain seek a

competitive edge that will differentiate them in an increasingly crowded wearable market. Also,

gesture recognition technology is gaining popularity in devices which will make touch screen

obsolete in the coming years.

3.2 MARKET CHALLANGES

3.2.1 THERMAL CONSIDERATIONS & DEVICE

PROTECTION

Thermal design challenges have also surfaced with the advent of wearable electronics for both

the package and overall system. Operating temperature of devices is decided by reliability

requirements in addition to a certain comfort level for the user. Wearables that are placed in

direct contact with the skin need to maintain an ideal operating temperature at or below the

normal body temperature of 37°C (98.6°F).

Wearable technology takes advantage of the fact that human body is a thermal regulator. Skin

temperature is held below normal body temperature and can act as a sink to dissipate thermal

energy. Thermal design is a challenge for products like smartwatches and glasses since they

have high thermal demands on the processor and overall package. However, designers should

remain careful since they are dealing with the human body.

Wearable products such as fitness bands and health monitors that are worn continuously are

expected to function in rugged conditions involving dust and moisture. Many materials used in

package and board assembly remain sensitive to moisture, requiring full encapsulation of all

electronic components. Generally mechanical seals are used to provide liquid and dust

protection. However, these break easily over a certain time and hence are not much reliable.

Companies such as HZO have developed nano-coating technology which protects the devices

at the PCB level. Design has to address concerns for material interaction, reliability of

interfaces, and impact on the thermal environment. Concerns for exposure to certain elements

and materials are also important to address.

These issues are not high on the list of challenges faced by the wearable market, but are

important enough, since they provide comfortable usage and longevity to the device.




4 PRODUCTS MARKET

4.1 WEARABLE PRODUCT MARKET

4.1.1 INTRODUCTION

Over the past few years wearable technology has penetrated into a diverse range of

applications such as healthcare, fitness, fashion, and military. Prominent companies such as

Google Inc. (U.S.), Apple (U.S.), Samsung Electronics (South Korea), Adidas AG (Germany)

are already a part of the value chain of wearable electronics. Large number of start-ups are

also aiming to be a part of this technology platform, but Google (U.S.), Samsung (South

Korea) are identified to be leading the way by integrating mobile applications into glasses and

watches respectively.

The wearable product market is segmented as per the figure below.

FIGURE 4

WEARABLE ELECTRONICS-PRODUCT SEGMENTATION

Wearable Electronic

Products

Hand Worn

Prodcuts

Head Worn

Products

Body Worn

Products

Smart Watch

Smart

Glasses

Smart Textile

Wrist Wear

HMD/HUD

Wearable

Patches

Finger Wear

Others

Others (Foot

Wear, Arm Wear

etc.)





4.1.2 HAND WORN PRODUCTS

4.1.2.1 Smartwatch

4 . 1 . 2 . 1 .1 S m a r t w a t c h ma r k e t s t a t i s t i c s

TABLE 1

SMARTWATCH MARKET VOLUME BY REGION (MILLION UNITS),

2014-2024

Region 2013 2014 2016 2018 2020 2022 2024

CAGR %

(2014-

2024)

North America XXX XXX XXX XXX XXX XXX XXX XXX

EMEA XXX XXX XXX XXX XXX XXX XXX XXX

APAC XXX XXX XXX XXX XXX XXX XXX XXX

Others XXX XXX XXX XXX XXX XXX XXX XXX

Total XXX XXX XXX XXX XXX XXX XXX XXX





TABLE 2

SMARTWATCH MARKET VALUE BY REGION ($MILLION ),

2014-2024

Region 2013 2014 2016 2018 2020 2022 2024

CAGR %

(2014-

2024)

North America XXX XXX XXX XXX XXX XXX XXX XXX

EMEA XXX XXX XXX XXX XXX XXX XXX XXX

APAC XXX XXX XXX XXX XXX XXX XXX XXX

Others XXX XXX XXX XXX XXX XXX XXX XXX



The global smartwatch market was dominated by North America with a contribution of $XXX

million in the total market value, and it is expected that this trend will continue from 2014 to

2024, with an estimated CAGR of XXX%. However, APAC has been identified as the fastest

growing region among all geographical regions with a promising CAGR of XXX% from 2014 to

2024.

4.1.2.2 Wrist wear

4 . 1 . 2 . 2 .1 W r is t w e ar k e y e l e c t r o n i c c o m p o n e n t s

Wrist worn devices are much smaller in size and shape, when compared with smartwatches.

Therefore, the components incorporated in wrist worn devices need to be much smaller but at

the same time should not affect the product’s performance. Various components such as

processors, memory, battery and others are discussed below:




4.1.2.2.1.1 Processors

Currently, wearable devices mostly use processors that were originally designed for

smartphones. This makes for limited functionalities, higher power consumption, and lower

response times. Therefore, with the miniaturization of MCU unobtrusive wearable devices can

be developed.

Toshiba has launched an application processor TZ1001MBG, which is designed for wearable

devices and features an integrated accelerometer, motion tracker and flash memory. The

processor is based on ARM’s architecture and is a XXX MHz variant in the Cortex (R) series

(M4F) that can decode information from the sensors.

Texas Instruments and STMicroelectronics clearly lead the way as far as MCU for wristbands

are concerned. Nike FuelBand and Fitbit Flex are powered by the MSP430 series of controller

from Texas Instruments and STM32 controller from STMicroelectronics respectively.

Key Player: Texas Instruments, STMicroelectronics, NXP semiconductors




5 GEOGRAPHIC ANALYSIS

5.1 APAC

5.1.1 JAPAN

Japan is one of the most advanced countries in the field of technology, leading the way with

the most advanced communications infrastructure. However, wearable technology has been

unable to captivate the interest of the consumers in the country.

Japanese technology investors are considered to be quite conservative when it comes to taking

a risk on new ideas as a result of which wearable technology is yet to develop substantially in

this country. Recently a Japanese start-up called Moff which develops wearable devices opted

for a U.S.-based Kickstarter campaign to develop and market Moff, instead of relying on a

Japanese funding medium. This is due to the lack of interest among Japanese investors for the

product. It was only after a successful Kickstarter drive and U.S. publicity did Japanese

investors step onboard.

In order to contribute to the development of wearable technology, researchers at the

Hiroshima University in Japan are testing a new wearable computing device that users simply

clip onto their ears to use. This device uses cutting-edge technology including a GPS, compass,

gyro-sensor, speaker, and microphone. Weighing only XXX grams, this Bluetooth-enabled

device could bring about a stir in the wearable computing industry.

Industry experts are of the opinion that consumers in Japan have greater inclination towards

smart garments. These include garments for fitness tracking and healthcare and also garments

that can notably display graphics on their surface to communicate.

The leading electronic companies such as Toshiba Corporation are also actively participating in

this competitive market by continuously launching technologically advanced products.

Toshiba's new application processor is a single package that integrates an accelerometer to

measure motion, a processor to handle the data acquired by the sensor, flash memory to store




data, and a Bluetooth Low Energy controller that supports low power communication. This

reduces mounting area, contributing to the downsizing of wearable devices.

In spite of the slow pace of development in Japan, it is expected that the country can benefit

from the wearable technology revolution because the country still excels at miniaturization

despite higher prices than Asian neighbors China and Taiwan.

5.1.2 AUSTRALIA

Consumers in Australia are embracing wearable technology at a faster rate than their

international counterparts. Also the consumers are eager to buy the latest gadgets despite

technology products being priced higher compared to other countries. High street retailers are

set to be leading a booming Australian market for wearable smartphone accessories, such as

smart watches, wristbands, and glasses.

Australian researchers are developing a wearable computer and augmented reality kit to aid

Australia’s bionic eye research project. University of South Australia’s Wearable Computer Lab

has collaborated with the National Information Communications Technology Australia (NICTA)

and the Bionic Vision Australia to develop prototype hardware tailored to simulations of

prosthetic vision.

With more and more consumers willing to be permanently connected to the cloud of personal

data, organizations will be given richer data streams and access to new opportunities to

understand individuals but will also face challenges around customer data management,

privacy, and interaction.




5.2 OTHERS

TABLE 3

WEARABLE MARKET VOLUME, OTHERS (MILLION UNITS), 2014-2024

Product 2013 2014 2016 2018 2020 2022 2024

CAGR %

(2014-

2024)

Hand Worn XXX XXX XXX XXX XXX XXX XXX XXX

Head Worn XXX XXX XXX XXX XXX XXX XXX XXX

Body Worn XXX XXX XXX XXX XXX XXX XXX XXX



TABLE 4

WEARABLE MARKET VALUE, OTHERS ($MILLION), 2014-2024

Product 2013 2014 2016 2018 2020 2022 2024

CAGR

%

(2014-

2024)

Hand Worn XXX XXX XXX XXX XXX XXX XXX XXX

Head Worn XXX XXX XXX XXX XXX XXX XXX XXX

Body Worn XXX XXX XXX XXX XXX XXX XXX XXX






The net revenue generated by other regions in 2013 was $XXX million with annual shipment

recorded to be .XXX million units. However, it is expected that the market value from other

countries will grow considerably and reach over $XXX billion by 2024, with a promising CAGR

of XXX% from 2014 to 2024. During the same period, the total shipment will rise from XXX

million units in 2014 to XXX million units by 2024, with an estimated CAGR of XXX% from

2014 to 2024.




6 KEY MARKET PLAYER PROFILE

6.1 OLYMPUS CORPORATION

6.1.1 OLYMPUS CORPORATION SUMMARY

Particular Specific (as of 2013)

Website www.olympus.co.jp

Contact Details

Shinjuku Monolith

2-3-1 Nishi-Shinjuku

Tokyo 163-0914

Japan

Tel: 81-3-3340-2111

Fax: 81-3-3340-2062

Year of incorporation/Establishment

1919

Ownership Type Public

Company Type Manufacturer and Retailer

Number of Employees 32,937

Subsidiaries

ITX Corporation (Japan), Olympus Business Creation Corp.

(Japan), Olympus Imaging Corp. (Japan), R D Tech

Instrument (U.S.), Olympus Optical Technology Philippines

Inc. (Philippines)

Competitors

GE Inspection (U.S.), Mistras (U.S.), Sony Corporation

(Japan), Flir (U.S.)

Source: Olympus Corp. Website, LinkedIn, BIS Research




6.1.2 FINANCIALS

FIGURE 5

OLYMPUS: OVERALL FINANCIALS, 2011 - 2013 ($ MILLION)

2011 2012 2013

Net Revenue 10,588 10,606 7,661

Net Income 48.3 -612.3 82.0

-XXX

-XXX

-XXX

-XXX

-XXX

-XXX

-XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

($M

illio

n)

($M

illio

n)

Sample

Source: Olympus Corp. Website, BIS Research

FIGURE 6

OLYMPUS: REVENUE BY OPERATING SEGMENTS FOR 2011-2013

XX%

XX%

XX%

XX%

XX%

2013Medical

Life Science & Industrial

Imaging

Information & Communication

Others

XX%

XX%XX%

XX%

XX%

2012

Medical


Imaging


Others

XX%

XX%XX%

XX%

XX%

2011

Medical


Imaging


Others

Sample

Source: Olympus Corp. Website, BIS Research




6.2 EPSON CORPORATION

6.2.1 EPSON CORPORATION SUMMARY

Particular Specific (as of 2013)

Website www.epson.com

Contact Details

3–3–5, Owa

Suwa – shi, 392 – 8502

Japan

Tel: 81–226–523-148

Fax: 81–226–534-844

Year of Incorporation/Establishment

1942

Ownership Type Public

Company Type Manufacturer

Number of Employees

Consolidated-73,639

Parent Company-11,848

Subsidiaries

Tohoku Epson Corporation, Epson Portland Inc., Epson Precision

Inc.(U.S.), Epson America Inc., Epson Co. Ltd. (China), Epson

Engineering (Shenzhen)

Competitors

Acer Inc. (Taiwan), Hewlett-Packard Company (U.S.A.), Sharp

Corporation (Japan),Canon Inc. (Japan), Bausch and Lomb Inc.

(U.S.), Casio Computer Co. Ltd. (Japan)

Source: Epson Corp. Website, LinkedIn, BIS Research




6.2.2 PRODUCT PORTFOLIO

FIGURE 7

EPSON CORPORATION MAIN BUSINESSES

Source: Epson Corp. Website, BIS Research

6.2.3 FINANCIALS

FIGURE 8

EPSON: OVERALL FINANCIALS, 2011 - 2013 ($MILLION)

2011 2012 2013

Net Revenue 12,170 10,974 9,619

Net Income 127.9 62.9 114.0

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

($M

illio

n)

($M

illio

n)

Sample

Source: Epson Corp. Website, BIS Research




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