wearable technology (the nunatak group)
DESCRIPTION
This focus of this issue is on Wearable Technology (WT), a big trend in digital media. It is broken down for you into three main segments: sports and fitness, infotainment and medical. Devices such as Google Glass and the iWatch are analyzed as well as the latest market trends. For example, data volume is expected to rise from 1.8 trillion gigabytes in 2011 to 18 trillion gigabytes in 2018 because of such drivers as WT. You will be able to read about the business opportunities in b2b or b2c, as well the potential risks in this new market, such as the privacy laws in Germany. Wearable Technology is a very exciting new industry. There are many opportunities for investors. There is a myriad of ways being developed to improve our health, as well as a multitude of possibilities for having fun. For those of you looking for new business ventures, you won’t want to miss our first issue. If you have any requests for what you would like to hear more about in our next issue or any other comments or suggestions, please don’t hesitate to contact us.TRANSCRIPT
S U M M A R Y
D E F I N I T I O N
The "Next Big Thing" in the digital sector: In 2013, the Wearable Technology (WT) industry will generate global revenues in the amount of USD 2.5 billion.1
By 2018, the market is expected to increase more than five-fold.1
Apple, Google, Nike and Sony are the current key players which are further developing this market.2
WT comprises all technical end devices in the form of clothing and accessories. The central function is the recording and processing of data related to its user.
UPDATEWEARABLE TECHNOLOGY
July 2013 www.nunatak.com Issue 1
Sources: 1Business Insider (2013), 2Forbes (2013) Photos: Nike; Jawbone; Pebble; Sony; Dexcom, Inc 2012; IMEC
Nike+ FuelBand Jawbone UP Pebble Smartwatch Dexcom Glucose G4 Imec EEGSony Smartwatch 2
SEGMENT: Sports and
Fitness
SEGMENT: Info-
tainment
SEGMENT: Medical
>Devices for the measure-ment of movement, nutrition
and vital functionsExample: Nike+ FuelBand
>Devices for the extension of smart phone
functionsExample: Sony Smartwatch 2
>Technical solutions measuring, storing and
sending data for diagnosing and treating patients
Example: Dexcom Glucose G4
Users want to be informed about the
best offers in their proximity and see which friends
are nearby.5
Many devices only work in combination with
a smartphone, e.g. for data uploading.
People are used to sharing personal data with others in their close network.
Three big trends contribute
to the success of wearable tech
B I G
T R E N D S
QUEST FOR INFORMATIONGoogle Glass3 revolutionizes the way you search for local information, destinations and reviews. This device can pinpoint your location and give you tailored informationsuch as departure times, shopping tips and further useful notifications.
NETWORKINGThe Apple iWatch4 could be Apple's newest innovation and may extend the functions of your iPhone or iPad. Rumor has it that the iWatch may feature call reception and instant messaging from the user's wrist. Through the watch's inter-face, users may be able to access social networks like Facebook or Whatsapp.
PERSONAL HEALTHCompanies like Dexcom develop solutions which connect iPhones and iPads to conventional medical devices such as blood pressure gauges, heart rate monitors and scales. Through a connection to modern hardware, measured data can be permanently saved, shared or forwarded to doctors.
Wearable Technology addresses trends and solves consumers' problems
Local
Mobile
Social
Sources: 3Google (2013), 4T3 (2013), 5GigaOM (2010) Photos: Google (2); ADR Studio; Withings
"The wearable fitness tech market is booming but also crowded and some evidence suggests it is already ripe for major consolidation."
gigaom.com8
"Wearable tech has finally begun to reach the critical masses and could be one of the hottest trends in the industry for years to come."
investopedia.com9
b2c: online/mobile platform to manage all of your personal data (health, fitness, work/life balance)
b2c: interior design advice via Google Glass augmented reality features
b2b: team up with health insurance providers to develop new member- ship models (for example, customers delivering data through jawbone get a discount)
b2b: run and manage high safety data centers/data storage services
The acceptance among a broad consumer mass is uncertain
End devices must be functional and accurate to use. Whether this is guaranteed remains to be seen
Privacy laws, e.g. in Germany, could present a lasting hurdle to market penetration
OPPORTUNITIES
Sources: 6Business Insider (2013), 7ABI Research (2013)/Transparency Market Research (2013), 8GigaOM (2013), 9Investopedia (2013), 10IDC (2013) | Definitions: 11CAGR = Compound Annual Growth Rate, 12"Digital data" refers to all digitally stored data
The market is growing, but at what rate?
What are business opportunities?
M A R K E T V O L U M E
M A R K E T S E G M E N T S (in percent7)
RISKS
(in USD bn6)
2012 2013
1.32.5
2013
2.5
2018
12.6
+92 % CAGR11:38 %
61 %Sports & Fitness
35 %Medical
4 %Other
The Nunatak Group GmbH | Managing Partners: Robert Jacobi, Rupert Schäfer | www.nunatak.com | [email protected]
Data volume10
Global, in trillion gigabyte
from final consumers
valuable for monetization
has been analyzed by corporations to date
"B I G G E R
DATA" W I T H
W E A R A B L E
T E C H N O L O G Y
68 %10
18 %10
0.5 %10
1.8
18
2011 2017
Of all digital data12: