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How Location Data is Fueling the Wearable Revolution 1 TABLE OF CONTENTS INTRODUCTION After years of iterating on prototypes, and everyone from garage-based hardware hackers to consumer electronics juggernauts entering the space, we’ve finally reached The Year of The Wearable. While their new technology Introduction breaks into the mainstream, these pioneers face an industry full of challenges. Every week, a new smartwatch The wearable market is receives funding on Kickstarter, already worth $3 to $5 billion 1 Two critical factors to the growth of the wearables industry a new connected fitness band today, according to a report by emerges from a Fortune 100 tech Credit Suisse. In the next two manufacturer and an Ivy League to three years it is expected dropout in a garage in Southern Why device level location is vital to be a $30 to $50 2 California takes aim at Google for a fluid user experience Glass. The wearable market is billion market. already worth $3 to $5 billion today, according to a report by without, like today’s smartphones. 3 How to optimize wearables for function, Credit Suisse.* In the next two to Better user experiences start with form and battery life three years it is expected to be a the basics like increasing battery $30 to $50 billion market. With so life, adding location data and much competition in the market, reducing form factor. Complete the most daunting challenge user experiences go a step further, wearable manufacturers will face adding rich layers of contextual https://twitter.com/skyhook is differentiating their devices. information to fit more precisely The winners in the market will into users’ lifestyles. The Year of make products that users can’t live Wearables may as well be called the Year of Natural Selection. *Credit Suisse “The Future of Wearable Technology” Report ©2014 Skyhook Wireless Inc • Follow us on ©2014 Skyhook Wireless Inc • Follow us on 3 CHAPTER 1 TWO CRITICAL FACTORS TO THE GROWTH OF THE WEARABLES INDUSTRY The smartwatch market is expected to grow from 15 million devices to 373 million devices by 2020**, NextMarket Insights predicts. The competition is growing and so is the need to differentiate your device. The first thing to consider is user experience that satisfies a use Chapter case for an indispensable device that users will want to wear everyday. Simple, right? The second focus is creating a clean, solid API that allows third party developers to not only leverage the functionality of the device, but dream up the next generation of use cases that make the device even more vital. There’s a race to gaining market share because most Two critical factors to developers first and foremost care that their software gets used. the growth of the When differentiating your device,focus on a user wearables industry experience that will make it indispensable; Create a solid API that allows third party developers to leverage device functionality and make your wearable more vital. Many wearable device manufacturers create products that extend the mobile experience rather than replace it. Most smartwatches and smart glasses fall in this category, establishing persistent Bluetooth connections to become a second screen for users’ smartphones. In order to make the device indispensable, wearable manufacturers have the ultimate vision to build smartwatches and smart glasses that are replacement, not a mere accessory for smart phones. These devices will deliver everything a smartphone can, directly to their users’ glasses or wrists, eliminating the disruptive behavior of pulling a device out of their pockets. **NextMarket Insights “Smartwatch Forecast 2013-2020” Report ©2014 Skyhook Wireless Inc • Follow us on 4 5 One of the most forward-looking leave-your-phone-behind devices is the Neptune Pine If you don’t offer a standard native set of features at the device level, including location, smartwatch. It packs a lot of connectivity beyond Bluetooth into its 66.0 x 53.5 x 14.2 mm Instagram will not be able to geotag photographs on your platform. Lacking native location body: Wi-Fi, GPS, and cellular networks. It’s equipped with everything a standard Android prevents Instagram from building a consistent experience for their users, and they will likely device needs, so it’s compatible with many Android apps that rely on native location dedicate their resources elsewhere. features. True differentiation in the market helped the Neptune Pine reach 8x its Kickstarter crowdfunding goal. Developers will flock to wearable device platforms that allow their users to have a consistent experience with the apps they already use in their everyday lives. Likewise, if you’re a smart glasses company that equips its device with a camera, you’ll likely want Instagram to build on your platform. Your target users are Early Adopter Instagram It is critical that smartwatches and smart glasses empower 3rd party app developers with addicts, and your success hinges on appealing to their photo sharing habits. platforms that have the same capabilities as smartphones--including native location that can be provided with Skyhook’s SDK. “3rd party apps play a crucial role in the industry, as they provide the device with an added value which sometimes becomes the decision maker for the user when purchasing the product. The more features“ the wearable provides to the users, the more valuable the device is. https://twitter.com/skyhook Alex Cabo General Manager Nestwork ©2014 Skyhook Wireless Inc • Follow us on ©2014 Skyhook Wireless Inc • Follow us on 7 CHAPTER 2 WHY DEVICE LEVEL LOCATION IS VITAL FOR A FLUID USER EXPERIENCE The ease and flexibility of adding device sensors like accelerometers, gyroscopes, and compasses to Chapter When you know where you were wearables has driven an explosion “when something happened, you of fitness wearables and apps. can usually infer or remember a Why device level The wearable technology market tremendous amount of related is packed with competition. things about that experience, “ location is vital for a By 2017, the global market for health which makes the data secondary, fluid user experience and fitness wearables alone will reach and the experience primary. 170 million devices, according to ABI Shane Luke research.*** CPO Unlike smartwatches and smartglasses Recon which typically establish persistent Bluetooth connections with mobile devices, fitness devices usually collect data and periodically sync with a smartphone. Users view their activity levels once their device connects to their mobile app, which pairs that ***Forbes “The Next Big Thing In Enterprise IT BYO Wearable Tech” ©2014 Skyhook Wireless Inc • Follow us on 8 9 activity with primitive location data from the mobile device. However, location data at the A truly intelligent device will know the difference between taking 6,000 steps on a treadmill device level provides an extremely valuable context layer that elevates the user experience and running 3 miles in a park, on a beach, or in a hilly neighborhood. “I believe that this type of fitness devices. of journaling of daily life promotes engagement as well as providing richer notifications, social interconnectedness, motivational encouragement The real opportunity for the next generation of fitness bands and smart clothing lies in and lifestyle awareness,” says Gorelick. coloring in the user experience with the contextual story around fitness activity. Mark Gorelick, Director of Product Science & Innovation at MIO Global says, “Location-based data Social networks like Nike+ and the FitBit community has a real opportunity to enhance healthy lifestyle wearables by categorizing daily activity bring unprecedented social competition to fitness with into a relevant contextual story.” leaderboards and weekly challenges. But social workout features shouldn’t be quarantined to the digital world. They can exist in the real world too: recommended workout spots from the local community, social gym Location-based data“ has a real opportunity to enhance healthy “lifestyle wearables by categorizing daily activity into a relevant buddy programs and running route time competitions. contextual story. None of that is possible without device-level location: fitness bands and clothing that know Mark Gorelick where they are when an activity is recorded, without relying on a mobile phone passing lat/ Director of Product Science & Innovation long coordinates over Bluetooth. MIO Global Recon CPO Shane Luke says, “When you know where you were when something happened, you can usually infer or remember a tremendous amount of related things about that experience, which makes the data secondary, and the experience primary.” https://twitter.com/skyhook The market is flooded with wearable fitness bands, smart clothing and the accompanying mobile apps. Only the strongest device manufacturers will survive--the ones that best fit into their users’ lifestyles. Doing so requires a knowledge of user context, and device-level location is the key to unlocking it. ©2014 Skyhook Wireless Inc • Follow us on ©2014 Skyhook Wireless Inc • Follow us on 11 CHAPTER 3 HOW TO OPTIMIZE WEARABLES FOR FUNCTION, FORM AND BATTERY LIFE Of all the methods available for wirelessly transferring data from one device to another, companies in the wearable industry have chosen Bluetooth as their Chapter frequency of choice. Bluetooth chips are inexpensive, and establishing a connection over Bluetooth consumes less battery power than the alternatives. Unfortunately, devices can only access location data How to optimize over Bluetooth when paired with another device that wearables for function, has GPS, Wi-Fi, or a cellular connection. The good news is that while wearable developers hold onto battery life form and battery life with white knuckles, they don’t have to sacrifice it for location features. It’s true that establishing a Wi-Fi connection consumes more device battery life than establishing a Bluetooth connection. How much more depends on innumerable factors like the size of data transfer and applications running simultaneously.
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