THE MARKET AS IT STANDS NOW

Joshua Flood, a senior analyst at ABI Research said that “The next 12 months will be a critical period for the acceptance and adoption of wearable devices. Healthcare and sports and activity trackers are rapidly becoming mass-market products. On the flipside, wearable devices like smart watches need to overcome some critical obstacles. Aesthetic design, more compelling use cases, battery life and lower price points are the main inhibitors. How vendors approach these challenges and their respective solutions will affect the wearable market far in the future.” - Joshua Flood (2014)

Future Foundation has revealed that there is already a healthy level of interest in wearable tech. Although only a very small minority of consumers say they have so far used a device (defined here as "wearable technology that connects to the internet –

e.g. a smart watch, a smart wristband, Google Glass"), a further 1 in 5 see appeal (with a predictable rise among Gen Ys as well as smartphone and tablet owners). As the marketing energy behind wearable tech increases, these figures are bound to grow – and probably quite quickly.

In the latest from ABI Research,

sales volumes of wearable devices would reach a peak of about 90 million devices, which would

be shipped in 2014.

Juniper Research estimates that wearable tech will generate $1.5 billion in 2014 (the market generated $1.4 billion in 2013)

No clear winner running away with the market

• Nike,Fitbit, and other fitness bands dominate about 90 percent of wearables sales, according to Accenture.

• But Sony, Pebble, and others have also built devices with more features, including notifications and the ability to snap photos and access apps.

• Samsung has tried to position itself as a leader in wearables with its smartwatch and a strong marketing campaign, but it's unclear just how well Gear is selling. Google, meanwhile, is going after smart eyewear with Glass.

• "We don't know who's going to win," Qualcomm CEO-elect Steve Mollenkopf said.

Fitness and health brands will remain king… at least for a while

• Health devices make up the vast majority of wearables sales today, and that's likely to continue. Other devices have to find a way to appeal to a specific consumer need before they really take off.

• The sport/activity and health/wellness categories are currently leading the wearable tech world

Fitbit push to lead the wearable tech boom – Silcon Valley maker of health gadgets plans major international marketing

push in 2014 (Telegraph 2013)

THE FUTURE MARKET

World Market Forecast Global Wearable Computing Devices (ABI Research)

Sports/activity trackers and

healthcare related wearable tech devices are set to be the most

popular – closely followed by

smartwatches

Juniper has forecast that worldwide spending on wearable technology will hit $19 billion in 2018. The increase is due in

large part to "heightened consumer awareness of wearable technology,"

Juniper Research's Nitin Bhas said in a statement. – Juniper 2013

BUT… TNS Global in the US reveals that

while three-quarters of consumers are aware of

wearable devices, only 9% are actually interested in using

them, with price and privacy reported

as being the main reasons for hesitancy – Contagious (2013)

Expect a lot more new entrants

• Making a fitness band or smartwatch isn't quite as complex -- or as pricey -- as building a smartphone or laptop. And the chip companies, who want to help grow the wearables market, are making it as easy as they can. Many have built reference designs that customers can take and rebrand as their own.

• "Because it is inexpensive to put some of these products together, it does open the door for new companies," said ARM Holdings CEO Simon Segars.

• Kickstarter has helped companies like Pebble start from scratch and focus on just one thing: Making a great wearable device. That's going to continue, but chipmakers predict companies focused on other areas also will jump into the market.

There will be more of an emphasis on aesthetics

• The vast majority of smartwatches on the market, and to some extent even Google Glass, are bulky and look more like a piece of technology than a fashion item. That's going to change as companies focus more on design and making devices that are more discrete.

• "They have to look like something you really want to wear before they get mass adoption," said Mike Bell, head of Intel's mobile business. "A problem they have is everything is a square touch screen. I'm pretty sure long term that's not what people are going to want to wear all the time."

Glasses and watches are a start

• Look for completely different products to emerge. Health care is an area that could see a surge in wearables. We'll also see more wearables for pets, such as new activity and biometrics trackers, as well as toys.

• There will also be other types of devices that extend the capabilities of the smartphone or allow for social interaction, like a ring that lights up when a loved one taps the other half of the matching pair.

• Another big area is clothing. For instance, manufacturers are working on smart buttons that could change the colour of a fabric when pushed or buttons and fabric that could measure UV exposure in sports equipment.

• "This year we're hoping to see the beginning of the wearables market showing its diversity," said Robert Thompson, business development leader for Freescale's i.MX application processor line.

The Internet of Things will be a driver of wearables

• The Internet of Things, where regular items such as refrigerators or washing machines have enough smarts to talk to each other, is another hot trend. So far, very few wearables connect with those products.

• Samsung's Smart Home, unveiled at CES, lets users manage all their connected appliances and devices through a single application. It also works with the Galaxy Gear. We'll see many more examples like this over the coming years.

THEMES AND TRENDS IN THE

MARKET FOR 2014

PREMIUM BONUS CONTENT · December 2013 | 6 TRENDS 2014: PPT EDITION

Why in 2014, mind will be the new body.

MYCHIATRY

Two types of consumers are fueling this

trend:

• THOSE FOR WHOM

MENTAL HEALTH IS A

NEW BENCHMARK.

• MYCHIATRY

INNOVATIONS OFFER

MUCH NEEDED RELIEF.

2014 Trend – MYCHIATRY (Trendwatching)

• In 2014, consumer interest in ‘Quantified Self’ products and services will continue to grow, as smartwatches and other powerful yet affordable wearable tech products enter the market.

• Much of the sector’s focus has been on physical health to date. The next step? Consumers will increasingly see their smartphones as devices for total lifestyle assistance. Improving techniques for self-treatment, developments in stress-detecting technologies and near-total smartphone penetration in many markets, means consumers will lap up innovations that help track and improve mental wellbeing too.

Melon

Smart headband tracks focus MYCHIATRY

The Melon headband and companion app

allows wearers to track, monitor and understand their

mental focus during a range of activities.

Mico

Headphones detect user’s mood and play music accordingly

MYCHIATRY

The Mico headset consists of headphones and an

EEG reader that rests on the wearer’s forehead and

senses neural activity. Brain signals allow the

device to detect the user’s mood (such as sleepy, stressed or focused),

which is shown on an LED earpiece display. The headphones relay the

information to a mobile running the Mico app and mood-appropriate music

is selected from the database.

PREMIUM BONUS CONTENT · December 2013 | 6 TRENDS 2014: PPT EDITION

THE INTERNET OF CARING THINGS

How connected objects will center around people in 2014.

PREMIUM BONUS CONTENT · December 2013 | 6 TRENDS 2014: PPT EDITION

In 2009, there were 2.5 billion

connected devices, most of these

were personal devices such as

cell phones and PCs. In 2020,

there will be up to 30 billion

connected devices, most of which

will be products.

Gartner, October 2013

And when say ‘massive’, we mean:

PREMIUM BONUS CONTENT · December 2013 | 6 TRENDS 2014: PPT EDITION

Gartner, October 2013

The Internet of Things will add

USD 1.9 trillion dollars of

economic value to the global

economy in 2020.

And when say ‘massive’, we mean:

THE INTERNET OF

CARING THINGS

Xkuty

Scooter sends alerts in the event of a crash

THE INTERNET OF

CARING THINGS

OMsignal

Sensor-integrated shirt monitors medical data

THE INTERNET OF

CARING THINGS

Ford

'Intelligent' car includes driver's seat heart rate monitor

THE INTERNET OF

CARING THINGS

Riddell InSite

Football helmet contains sensors that alert coaches in event of trauma

Mintel Trend – Boss is Watching • The Hitachi Business Microscope is a new wearable device that looks like an employee ID badge but

measures employees’ interactions with each other and customers to improve productivity. • The Hitachi device includes infrared sensors, an accelerometer, a microphone sensor, and a wireless

communication device so that corporations can keep track of who employees are talking to, where they’re conversing, how often they’re talking, and how much enthusiasm they’re showing. In a pilot test at a retail store, employees were repositioned based on 10 days of data collection, leading to a 15% increase in average sales per customer. For those employees interested in their interaction data, the device also includes an LCD screen.

The next big brother: your boss • People today are being monitored more than ever before. Tracking technology is making it easier for

governing bodies and criminal justice authorities to keep watch over their citizens, especially when it’s getting so much cheaper to do so .

• According to 2013 data from Mintel’s GMN, smartphones now form upwards of 70% of the mobile phone market in Japan, making it easier for people to be tracked. Some people are voluntarily choosing to see how technology has tracked them on social media, but many others are obscuring social media’s attempt at this.

• If this use of wearable tracking technology takes off, we’re sure to see more defensive consumer reactions. Some consumers have already begun using apps that block retailers from tracking them through stores or from accessing their location data.

• This type of technology has plenty of benefits that it can offer to companies, though. For example, the Hitachi device also creates visualizations that show which departments could use more interactions. Companies would do well to educate people on the reasons that such monitoring is beneficial to them, clearly communicate their intentions and boundaries, and still allow people the chance to opt in or out.

Even wearable tech is starting to enter the workplace

Smartwatches could kick-start wearable technology market – Mintel 2013

PSFK ‘ THE FUTURE OF WEARABLE TECH’ REPORT

Key Themes Driving Wearable Enhancements

• Bio-Tech Fusion - As chip and battery technologies get smaller and more sophisticated we’re seeing a closer relationship between wearable devices and the human body. As this evolution continues, we can expect to see a deeper integration, which points to a future of ubiquitous computing merged with biological systems.

• Synced Lifestyle - As wearable devices take on more key features from personal health to communication, they are being designed to seamlessly sync with a broader ecosystem of technologies. These automated interactions will help streamline specific tasks, creating new expectations around the flow of daily life within a networked environment.

• Organic Interface - Wearables are becoming more capable of tracking and responding to a wider range of human inputs from gestures to biometrics. This opens the door for a more natural form of communication and computing, which lowers the barriers to access.

• Performance Enhancements - Advancements related to precision, responsiveness and control has led to the development of assistive technologies that are capable of restoring or augmenting existing abilities, which can normalize life for individuals, while also expanding the types, efficiencies and duration of tasks that can now be completed by people.

• Always-On Wellness - Sophisticated sensors and algorithms are increasing the speed and accuracy of health-related metrics being gathered by wearable devices, empowering people to take a more active role in the management of their personal well-being. This more holistic view of health can contribute to a model of prevention, early diagnosis and continuous care that can improve behaviors and contribute to a higher quality of life.

• Personalized Context - The continuous connectivity and computing being enabled by wearables is creating a free flow of information and recognition across devices and platforms. When placed in current context, these self-aware systems can facilitate connected experiences that deliver greater meaning and relevancy into people’s lives

Function of Wearables Forecast

Connected Intimacy

“Wearable technologies are adding new layers to our personal relationships by extending the reach and power of how we communicate and share details

about ourselves regardless of distance. The constant connectivity of these devices builds a unique portrait of

their wearers and creates a continuous link between people, simulating closeness, changing the way we understand one another and enabling new forms of

attention and care.”

THEME

LONG DISTANCE TOGETHERNESS Harnessing the power of Haptics to create a tangible connection between loved ones over any distance. These tools simulate togetherness.

Wireless bracelet lets users feel each other from afar

Hug simulation jacket lets parents calm kids via mobile devices

DATA-STREAMED CARE Embedded tracking technologies are being used to remotely monitor individual health & performance, creating a flow of information between device wearers and people who can access and interpret this data

GPS tracking software helps monitor players performance.

Smart diapers can detect health issues for babies and communicates them to parents.

EMOTIONAL MIRROR Sensors and display technologies are being embedded into clothing and accessories to outwardly convey information about the wearer and their reaction to the surrounding environment.

Workout gear visualises activity levels of wearer in real-time

Tailored Ecosystem

“Wearable technologies are beginning to adapt their form and functionality to align with our unique sets of

needs. Whether customising their design to fit the unique contours of a wearer’s body or responding to a

user’s emotional state of offer highly personalised feedback, this new breed of devices allows people to

better define their interactions with technology, while at the same time enabling more meaningful

experiences.”

THEME

BESPOKE BIOTECH Advances in 3D printing capabilities have enhanced the way that materials can be created to support individual needs and requirements, offering exciting possibilities for advances in the medical field.

3D printed exoskeleton lets handicapped girl use her arms for the first time

BIOMETRICALLY ATTUNED Wearable technologies and embedded sensors are passively gathering information from their users to create conditions which are optimised to an individual’s current needs.

Smartphone enabled bracelet tailors suggestions based on mood and diet

RESPONSE COACHING Sensor technologies are being seamlessly integrated into products and apparel to seamlessly monitor performance and offer specific feedback without impeding movement.

Running app personalises workouts based on current stamina

Strap notifies user when posture is slipping

Co-Evolved Possibilities

“Technology features and designs are evolving alongside our behaviours to take on a more essential role in our daily lives. Whether augmenting people’s existing abilities or evolving their interfaces alongside natural inputs to enable more intuitive control, these

devices point to the increasingly sophisticated relationship people have with their technologies.”

THEME

AUGMENTED SENSORY PERCEPTION Hybrid technologies are being closely aligned and sometimes integrated with the human body to enhance existing perceptions and abilities.

Zoomable contact lens could assist those with degenerative eye conditions

ON-BOARD INTERFACE Wearable technologies are enabling their wearers to use gestures and other natural inputs to interact with their device.

Electronic make up lets users activate gadgets by blinking

AUTHENTICATED-SELF Wearable and embedded technologies are being linked with individual users to expedite the verification process when accessing other connected devices and systems.

File transferring chip transforms fingers into USB sticks and access key

CLOUD MEMORY Automated tools are allowing people to instantly transcribe the events and experiences that make up their daily lives and store them in the cloud for later access.

Wristband automatically records audio memories throughout the day

THE CONTEXT

MAKE SENSE Genevieve Bell, Intel's in-house anthropologist, sees constants in our behavior that could mean big bucks for businesses that find a way to capitalize on them.

The point, says Bell, is to ask "what sense-making activity are you putting on that data?" That's the question that technologies –

whether they're wearable, or whether they're measuring something or telling the world something about ourselves – are

starting to grapple with. And it's by getting intimate with technology – or more intimate – that we might start to learn more

about ourselves.

http://www.youtube.com/watch?v=4uxdmhzhjgY&app=desktop

STATEMENT FASHION

INTEL FASHION PARTNERS

JANUARY 13, 2014 The CFDA and Intel have entered into a strategic collaboration to create a community for technology developers and fashion designers focused on wearable technology. During the International Consumer Electronics Show in Las Vegas on January 6, 2014, Intel Corporation discussed this initiative and the ways it will increase communication between the fashion and technology industries. To scale the convergence of the two industries, Intel will work with the CFDA to create a community for technology developers and fashion designers to network, match-make, cultivate and exchange ideas on wearable technology.

Intel Taps Fashion Industry: Monday evening, Intel Corp. announced a wearable technology collaboration with major fashion industry leaders, including the CFDA, Barneys New York, and Opening Ceremony. Opening Ceremony will design a smart bracelet with Intel (exact design details and a launch date are still unknown) that will be available at Barneys, while the CFDA will work with Intel to develop new products. "Wearables are an area that we are pursuing," said Ayse Ildeniz, Intel's vice president of business development and strategy. "Most of it comes from technology companies, and we see these as very personal things. We thought the fashion industry should be in the driver's seat."

HEALTH INNOVATION

The complaints with wearable fitness trackers are routinely uniform. If a device is slim and sleek, it tends not to provide very useful data beyond counting steps and telling you when you rolled around in your sleep. If it's powerful, on the other hand, it's typically bulky and designed at the expense of looking like something you'd actually want to wear in public.

CuteCircuit designs awe-inspiring illuminated jackets for Samsung.

COMMUNICATION FROM A DISTANCE

The Good Night Lamp is a family of connected lamps for your global friends & family.

BARCELONA MOBILE WORLD

CONGRESS

“YOU CAN’T IMPROVE WHAT YOU DON’T MEASURE”

MOTHER

HACK MY T-SHIRT

PRIVACY

DIY

RE-PROGRAMMING MY T-SHIRT

PROGRAMMING

OPEN-SOURCE DESIGN

ADA FRUIT - FLORA FLORA is Adafruit's wearable electronics platform. We designed it from the ground up to provide the best experience for Adafruit's community of makers, hackers, crafters, artists, designers and engineers. t's built around the Atmega32u4 chip, which has built-in USB support. No pesky special cables or extra parts for programming, just plug it in and get started making the wearables project of your dreams! Works on Windows and Mac.

Rattner has a point: existing wearable tech devices, such as Google Glass and the Pebble watch, are interesting riffs on devices we already have. But Intel and its team of futurologists and anthropologists have a vision of a world where the technology is not an adjunct (as the mobile phone or the tablet is now) but embedded in our lives, generating and mining data in a way that's functional and useful to us.

At the moment, the benefit from the data we create every day flows largely in favour of the companies who use it to serve us adverts based on the demographic profile we give them. But Steve Brown, Intel's futurist, says it's "the individual [who] should benefit – it's your data". He explains: "That data is valuable to you because it's personal, private, and can be used to give you useful services. So what are the ways we could give people to control their own data stored on their devices? How can we empower them to have negotiations with that service provider?"

GOOGLE NEST

USERS LOOKING FOR UNIQUE APPLICATIONS People are most motivated by

devices that help to communicate across disabilities, distances, languages Click, Wearable Tech BBC Radio 4, 26th Feb 2014

BREAKING DOWN THE INTERFACE BETWEEN HUMANS AND TECHNOLOGY Moving towards a world where our bodies are the interfaces rather than devices or machines… If it’s working well we should be almost unaware that the technology is even there Click, Wearable Tech BBC Radio 4, 26th Feb 2014

“THE EXCITING THING ABOUT THIS PHASE OF WEARABLES AND CONNECTED DEVICES IS THAT THE SYSTEMS ARE OPEN SOURCE AND OPEN FOR EXPERIMENTATION” Click, Wearable Tech BBC Radio 4, 26th Feb 2014

“WEARABLE TECHNOLOGY IS AUGMENTING OUR SOCIAL LIVES AND WILL CREATE NEW SOCIAL NORMS” Click, Wearable Tech BBC Radio 4, 26th Feb 2014

The complaints with wearable fitness trackers are routinely uniform. If a device is slim and sleek, it tends not to provide very useful data beyond counting steps and telling you when you rolled around in your sleep. If it's powerful, on the other hand, it's typically bulky and designed at the expense of looking like something

you'd actually want to wear in public. Will Apple’s

first offerings in wearable break this pattern?

Click, Wearable Tech BBC Radio 4, 26th Feb 2014

The two things that need to happen before wearable tech goes mainstream: Google and Apple

TRADITIONAL TECH LEADERS are giving themselves credible partners either in design, medical or sports expertise, or innovation I.e. ARM and economist tracking progress, or linking with cool sports/fashion brands to put themselves on the bleeding edge...

ARM COMMUNITY CASE STUDY