Connected Wearables – 4th Edition

Connected Wearables is the fourth consecutive reportfrom Berg Insight analysing the latest developments on theconnected wearables market worldwide.

This strategic research report from Berg Insight provides youwith 160 pages of unique business intelligence including 5-yearindustry forecasts and expert commentary on which to baseyour business decisions.

This report will allow you to:

Understand the key enablers for growth in the connectedwearables market.
Identify key players in the connected wearables ecosystem.
Benefit from detailed forecasts for each device category lastinguntil 2023.
Learn about the markets for activity trackers, smartwatches, smartglasses and medical devices.
Evaluate the business opportunities in new innovative devicecategories.
Predict future market and technology developments.

This report answers the following questions:

Which are the main device categories within connectedwearables?
What are the main drivers on this market?
What are the general technology trends for connectedwearables?
When will cellular connectivity be a common option in connectedwearables?
Which connected wearables offer the best potential forembedded cellular connectivity?
Which are the leading wearables vendors?
How will the markets for smart watches and fitness trackersconverge?
When will smart clothing become a success on the consumermarket?
What new innovative wearables could become successes?

Executive summary

The wearable form factor enables hands-free operation and allows the user to multitask andget immediate access to information. It also enables continuous recording of useful data suchas body metrics, location and environmental data. Berg Insight’s definition of a connectedwearable is a device meant to be worn by the user and which incorporates data logging andsome sort of wireless connectivity. Various forms of connected wearables have for long beenused in professional markets to improve work processes and increase efficiency. The highsmartphone adoption, cloud services, miniaturised hardware, sensor technology and lowpower wireless connectivity enabled wearables to emerge as a new promising consumersegment some years ago. Today, activity trackers and connected fitness devices as well assmartwatches are leading the wearable technology industry in terms of shipment volume andmarket maturity. However, the number of applications for wearable technology is vast and aplethora of device categories such as smart glasses, head-mounted displays, medicaldevices, wrist-worn computers and scanners, connected clothes and garments, gesturecontrol devices and many more exist. These wearable devices target various marketsegments including infotainment & lifestyle, fitness & wellness, people monitoring & safety,medical & healthcare, enterprise & industrial and government & military.

The market for connected wearables has entered a strong growth phase that will last formany years to come. Berg Insight estimates that shipments of connected wearables reached116.8 million units in 2018. The market is expected to grow at a CAGR of 15.4 percent toreach annual shipments of 238.5 million in 2023. Wearable activity trackers and connectedfitness devices is the leading category, currently representing a majority of the shipments.Decreasing prices and extended capabilities will enable shipments in the segment to reach88.9 million units in 2023. Smartwatches have also started to reach significant volumes. Themarket is led by Apple which accounted for close to half of the 45.5 million devices shipped in2018. Smartwatches are increasingly incorporating activity tracking features as well as moreadvanced sensors for medical applications. Growing at a CAGR of 20.9 percent, the marketsegment is predicted to become the largest wearables category with shipments of 117.7million devices in 2023. Sales of smart glasses and head-mounted displays have grownrapidly in recent years. During 2018, an estimated 1.5 million devices were shipped. Around75 percent of these devices were VR/AR headsets to be used for gaming and entertainmentpurposes, while the remaining devices were mainly used by enterprises and the military. Thecategory is projected to reach annual shipments of 11.9 million devices in 2023. Annualshipments of medical and mobile telecare/mPERS devices are forecasted to grow from 1.8million devices in 2018 to 6.9 million devices in 2023. Finally, annual shipments of wearablesnot covered by the above product categories are predicted to grow at a CAGR of 34.1percent from 3.0 million units in 2018 to reach 13.0 million units in 2023. The segmentincludes wearables such as authentication and gestures devices, smart rings, wrist-worncomputers and scanners, smart jewellery and connected prosthetics.

North America is the largest market for connected wearables and accounted for about 44.4million of the total shipments in 2018. The second largest market is Europe which reachedshipments of 38.5 million devices followed by Asia-Pacific with 26.9 million devices. BergInsight projects that North America will remain the largest regional market in 2023, but itsmarket share will decrease from 38 percent in 2018 to around 33 percent at the end of theforecast period. Asia-Pacific is estimated to account for an increasing share and in 2023account for 30 percent of the shipments, up from 23 percent in 2018. Emerging marketscurrently represent a relatively small share of the market. Demand in the Middle East andAfrica mainly comes from a few developed countries and wider adoption in the region will behighly dependent on the overall economic development.

Bluetooth will remain the primary connectivity option in consumer centric wearablesthroughout the forecast period and smartphones will act as the principal hub for remoteconnectivity. The number of active cellular network connections from wearables is projectedto grow from 23.8 million in 2018 to reach 176.8 million connections in 2023. The growth ismainly driven by increasing adoption of cellular connectivity in the smartwatch category. Themost common connectivity option for wearable medical devices will be low power NFCtechnologies and Bluetooth which enable remote connectivity via medical monitoring systemhubs. BYOD will have an increasing impact on the connected medical device category,especially for patient-driven models of connected care.

Executive summary
1 Introduction to wearable technology
1.1 Introduction
1.1.1 Background
1.1.2 Definitions
1.2 Market segments
1.2.1 Infotainment & lifestyle
1.2.2 Fitness & wellness
1.2.3 People monitoring & safety
1.2.4 Medical & healthcare
1.2.5 Enterprise & industrial
1.2.6 Government & military
1.3 Technologies and platforms
1.3.1 Mobile operating systems and platforms
1.3.2 Battery and processor technologies
1.3.3 Wireless technologies
1.3.4 Sensors
1.3.5 Display technologies and user interface
2 Value chain and vendor landscape
2.1 Enabling technologies
2.1.1 Hardware component vendors
2.1.2 Mobile operating system vendors
2.2 Devices
2.2.1 Smartphone and consumer electronics manufacturers
2.2.2 Apparel and accessories companies
2.2.3 Specialist vendors
2.3 Connectivity services and IoT platforms
2.3.1 Wireless operators and managed service providers
2.3.2 IoT platforms
2.4 Apps and content
2.4.1 Software application developers and content providers
3 Connected fitness and activity trackers
3.1 The connected fitness and activity tracking market
3.1.1 Market size and major vendors
3.1.2 Fitness and activity tracking wristbands
3.1.3 Connected sports watches
3.1.4 Smart clothing
3.1.5 Other form factors
3.2 Fitness and activity trackers and wireless connectivity
3.3 Company profiles and strategies
3.3.1 Athos
3.3.2 Digitsole
3.3.3 Fitbit
3.3.4 Garmin
3.3.5 Hexoskin
3.3.6 Huawei
3.3.7 Moov
3.3.8 OMsignal
3.3.9 Sensoria
3.3.10 Xiaomi
4 Smartwatches
4.1 The smartwatch market
4.1.1 Market size and the largest vendors
4.1.2 Smartwatch platforms
4.1.3 Smartwatches for children
4.2 Smartwatches and wireless connectivity
4.3 Company profiles and strategies
4.3.1 Apple
4.3.2 Blocks Wearables
4.3.3 hereO
4.3.4 Fossil
4.3.5 Laipac Technology
4.3.6 LG Electronics
4.3.7 Samsung
4.3.8 Withings
5 Smart glasses & head-mounted displays
5.1 The smart glasses and HMD market
5.1.1 Key vendors and market landscape
5.1.2 Virtual Reality headsets
5.2 Smart glasses and wireless connectivity
5.3 Company profiles and strategies
5.3.1 Daqri
5.3.2 Epson
5.3.3 Everysight
5.3.4 Google
5.3.5 Kopin
5.3.6 Microsoft
5.3.7 North
5.3.8 Optinvent
5.3.9 Oculus VR (Facebook)
5.3.10 Osterhout Design Group
5.3.11 Vuzix
6 Medical devices and mobile telecare
6.1 Medical devices
6.1.1 The mHealth and home monitoring market
6.1.2 Regulatory environment
6.1.3 Wearable medical devices and implants
6.2 Next-generation telecare and mPERS solutions
6.2.1 Mobile telecare and mPERS devices
6.3 Company profiles and strategies
6.3.1 BioTelemetry
6.3.2 Dexcom
6.3.3 Everon
6.3.4 GreatCall
6.3.5 Medtronic
6.3.6 MobileHelp
6.3.7 Navigil
6.3.8 Nortek
6.3.10 Preventice Solutions
6.3.11 Proteus Digital Health
7 Market forecasts and trends
7.1 Global market outlook
7.1.1 Market segments
7.1.2 Regional market data
7.1.3 Cellular connections
7.2 Market forecasts – smartwatches
7.3 Market forecasts – smart glasses & head-mounted displays
7.4 Market forecasts – fitness and activity trackers
7.5 Market forecasts – medical devices and mobile telecare
7.6 Market forecasts – other connected wearables
7.7 Market trends and drivers
7.7.1 Wearables are at the intersection of fashion and technology
7.7.2 The myriad of use cases is wearables’ killer app
7.7.3 The voice-controlled user interface enters the wearables market
7.7.4 Wearables raise privacy and security concerns
7.7.5 Long-term engagement: bringing it all together
7.7.6 Continued M&A activities anticipated to take place in the wearables industry 155
7.7.7 Activity tracking wrist-bands face increasing competition
7.7.8 Consumerisation of medical-grade mHealth devices
7.7.9 New mobile telecare solutions open up market opportunities
List of Figures
Figure 1.1: Market segments, applications and devices
Figure 1.2: Wireless technologies characteristics
Figure 2.1: The connected wearables value chain
Figure 2.2: Smartphone shipments by OS (2016 and 2017)
Figure 2.3: Top 10 consumer electronics companies by revenues (2018)
Figure 2.4: Smartphone shipments by vendor (World 2016 and 2017)
Figure 2.5: Major apparel and accessories companies (World 2018)
Figure 3.1: Wearable fitness device form factors
Figure 3.2: Connected fitness and activity tracker shipments (2017-2018)
Figure 3.3: Examples of Bluetooth connected activity wristbands
Figure 3.4: Examples of Bluetooth connected sports watches
Figure 3.5: Examples of connected fitness clothing vendors and products
Figure 3.6: Connected activity trackers with alternative form factors
Figure 3.7: Fitbit Charge 3 activity tracker and Fitbit Ionic smartwatch
Figure 3.8: Selected activity trackers and connected watches from Garmin
Figure 3.9: Moov HR Sweat and Moov Now
Figure 3.10: Xiaomi Mi Band 3 fitness tracker
Figure 4.1: Apple Watch Series 4, Samsung Galaxy Watch and Fossil Hybrid Smartwatch
Figure 4.2: Smartwatch shipments by vendor (World 2015–2018)
Figure 4.3: Active user base of smartwatch operating systems (World Q4-2018)
Figure 4.4: Price examples of child locator devices (2019)
Figure 4.5: Wearable child locator devices
Figure 4.6: Examples of smartwatches featuring cellular connectivity (Q1-2019)
Figure 4.7: Apple Watch Series 4
Figure 4.8: Connected wearables from Samsung (2013–2018)
Figure 5.1: Smart glasses and HMD form factors
Figure 5.2: Smart glasses from various vendors
Figure 5.3: Examples of introduced smart glasses and HMDs (January 2019)
Figure 5.4: Examples of VR headsets
Figure 5.5: Daqri Smart Helmet and Smart Glasses
Figure 5.6: Epson BT-300
Figure 5.7: Raptor AR smart glasses
Figure 5.8: Focals smart glasses and Loop ring
Figure 6.1: Examples of wearable medical applications
Figure 6.2: Overview of the mHealth technology value chain
Figure 6.3: Examples of medical devices
Figure 6.4: Cardiac rhythm and ECG monitoring devices
Figure 6.5: Connected glucose and blood pressure monitors
Figure 6.6: MC10 Biostamp and Orpyx SurroSense RX
Figure 6.7: Mobile telecare and mPERS devices
Figure 6.8: Dexcom G6 family
Figure 6.9: MobileHelp Duo mPERS system
Figure 7.1: Connected wearables shipments by device category (World 2017–2023)
Figure 7.2: Connected wearables shipments by market segment (World 2017–2023)
Figure 7.3: Connected wearables shipments by region (World 2017–2023)
Figure 7.4: Cellular connections by device category (World 2017–2023)
Figure 7.5: Smartwatch shipments by region (World 2017–2023)
Figure 7.6: Smart glasses and HMD shipments by region (World 2017–2023)
Figure 7.7: Fitness and activity tracker shipments by region (World 2017–2023)
Figure 7.8: Wearable medical device & mPERS shipments by region (World 2017–2023)
Figure 7.9: Other connected wearables shipments by region (World 2017–2023)
Figure 7.10: Selected mergers and acquisitions in the wearables industry (2014–2019)

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