Wearable Tech 1 August 2019

Thematic Research: Technology GDTMT-TR-S219

Smartwatches are driving growth in wearable tech The wearable tech industry was worth nearly $XXbn in 2018 and will grow at Inside a compound annual growth rate (CAGR) of XX% to reach $XXbn by 2023, . Players according to GlobalData forecasts. . Technology briefing . Trends That growth will be driven by sales of smartwatches, which are gaining in . Industry analysis popularity as the range of features they offer (which now includes cellular . Value chain connectivity, health monitoring, and contactless payment) increases. In . Companies contrast, the popularity of fitness trackers is waning, due to their limited . Sector scorecard capabilities when compared to smartwatches. . Glossary The wearable tech theme incorporates more than just wrist-worn devices. Smart earwear, or hearables, has become a more prominent category with the emergence of devices that incorporate voice-activated virtual assistants such as Apple’s Siri (which is available in the company’s second-generation AirPods, released in March 2019) and Google’s Assistant (integrated into the company’s Pixel Buds). Hearables also have the potential to match, or even exceed, the performance of smartwatches when it comes to providing health monitoring services.

Enterprises are beginning to see the potential of wearable tech Much of the coverage of wearable tech tends to focus on consumer trends, but enterprise adoption of wearable tech is accelerating, with notable activity in the healthcare, logistics, insurance, fintech, and defense markets. Over the next few years, wearable devices will become smarter, as they incorporate technologies like artificial intelligence (AI) and augmented reality (AR), and so their relevance to enterprise users across industries will only increase. Frontrunners in the wearable tech theme Apple is the dominant player in the smartwatches segment, thanks to the success of the Apple Watch, and also holds a strong position in the hearables segment, where AirPods are the market leader. Apple’s management team has boasted that the company’s wearables business is now the size of a Fortune 200 firm, even though the Apple Watch has only been around since 2015. Other well-positioned players across wearable tech include Huawei, Google, Samsung, and Xiaomi. The leaders in specific wearable tech categories are shown below.

. Smartwatches: . Smart glasses: SAMPLE Report type . Fitness trackers: . Single theme . Multi-theme . Smart clothes: . Sector Scorecard

. Hearables: [email protected] www.globaldata.com +44 (0) 207 406 6764

Contents

PLAYERS ...... 3

TECHNOLOGY BRIEFING ...... 4

TRENDS ...... 6 Technology trends ...... 6 Macroeconomic trends ...... 7 Regulatory trends ...... 9

INDUSTRY ANALYSIS ...... 10 Market size and growth forecasts ...... 10 Competitive analysis ...... 12 Mergers and acquisitions ...... 13 Timeline ...... 14 Use cases ...... 15

VALUE CHAIN ...... 17

App layer ...... 18 Apps ...... 18 Platforms ...... 18

Data layer ...... 18

Connectivity layer ...... 18

Device layer ...... 20 Smartwatches ...... 20 Smart glasses ...... 20 Fitness trackers ...... 21 Smart clothes...... 22 Hearables ...... 22

COMPANIES ...... 24

CONSUMER ELECTRONICS SECTOR SCORECARD ...... 27 Who’s who ...... SAMPLE 27 Thematic screen ...... 28 Valuation screen ...... 29 Risk Screen ...... 30

GLOSSARY ...... 31

APPENDIX: OUR THEMATIC RESEARCH METHODOLOGY ...... 34

www.globaldata.com 2

GDTMT-TR-S219 Wearable Tech 1 August 2019

Players In competitive terms, the wearable tech market is primarily a face-off between the US tech giants and their Chinese counterparts. While Apple dominates the market, particularly in Western countries, Xiaomi and Huawei’s cheaper offerings are challenging its position. Meanwhile, wearable vendors such as Fitbit and Garmin are adopting diversification strategies to expand their product portfolio in pursuit of future growth, and tech companies like Samsung and HTC are also working to expand their market shares. This report looks at the state of the global wearable tech industry and the key themes driving it forward. Below, we list the market leaders in each segment of the wearable tech industry value chain. Who are the big players in the wearable tech industry and what do they do? Below, we segment the wearable tech market by device type

Leaders ChallengersChallengers

Apple Samsung Garmin Fossil Smartwatches Xiaomi Huawei Sony TAG Heuer Fitbit Mobvoi Swatch LG Asus Casio Motorola

AR smart Microsoft Daqri North Magic Leap glasses Google Lenovo Snap Epson Vuzix Vue Bose Oakley Solos

Oculus (Facebook) HTC Lenovo Pico VR smart Wearable tech glasses Sony Google HP DeePoon VR Samsung Valve 3Glasses (Digital Domain)

Fitbit Garmin Strava GOQii Fitness trackers Xiaomi Samsung MisFit (Axon) Moov Huawei Withings

Google OMSignal Samsung CuteCircuit Smart clothes Under Armour Wearable X Lumo Komodo Technologies Sensoria Athos Hexoskin

Apple Huawei Sony Nuheara Hearables Google Plantronics Bose Mymanu Samsung Jabra (GN Group) Skullcandy Sennheiser Bragi Source: GlobalData

SAMPLE

www.globaldata.com 3

GDTMT-TR-S219 Wearable Tech 1 August 2019

Trends Wearables are evolving into important tools in the expanding IoT landscape, driven by a combination of technological progress, on one hand, and market demand on the other. Some technology experts believe wearables will be the next big consumer technology, with their impact similar to that of the smartphone. It remains to be seen whether wearables will demonstrate smartphone-like market influence in the coming years, but GlobalData expects wearable technologies to have a significant impact in specific areas such as healthcare, fitness, logistics, fintech, insurance, and defense. The key trends in the wearable tech industry over the next two to three years are shown below. We classify these trends into three categories: technology trends, macroeconomic trends, and regulatory trends. Technology trends The table below highlights the key technology trends impacting the wearable tech industry. Trend What’s happening?

The smartwatch is king Fitness trackers are losing out to smartwatches Custom silicon AR smart glasses

Hearables Smart clothing AI 5G Cloud services IoT Wearables reinforce OS platform trends Power supply Sensors Bluetooth low energy (BLE) controllers Beacon technologies Embedded SIM cards (eSIMs) Wearable payments Cybersecurity Gaming SAMPLE Source: GlobalData

www.globaldata.com 6

GDTMT-TR-S219 Wearable Tech 1 August 2019

Value chain In the schematic below, we show how wearables technology fits into the IoT value chain. As described in the recent thematic report, Internet of Things, we classify the IoT into six distinct markets: automated home; connected car; connected store; industrial internet; smart metering; and wearable technology. Each of the six IoT markets has a common value chain, which can, in turn, be split into four layers: the app layer; the data layer; the connectivity layer; and the device layer. These layers are logically discrete, although large-scale IoT use cases will likely result in these logical boundaries becoming blurred. For example, while there will continue to be a clearly identifiable data layer towards the top of the stack, a growing proportion of the data processing is taking place within, and at the edge of, the network. Wearable technology is one of six distinct IoT markets The wearable tech value chain has four layers: apps, data, connectivity, and devices

Internet of Things Internet of Things markets value chain

Automated home App layer Apps Platforms

Connected car Data governance Data processing Business intelligence Data layer Data aggregation Data analysis Connected store Data integration Data storage

Industrial internet Edge devices Telecom networks inc. 5G Connectivity layer Internet/cloud infrastructure Communications protocol Networking equipment Smart metering

Wearable Cameras and lenses Microprocessors technology Device layer Connected things Sensors & microcontrollers

Source: GlobalData

The focus of this report is on wearable tech. On the following pages, we will discuss each of the four layers of the value chain, but leaders and challengers will only be identified at the device layer. SAMPLE

www.globaldata.com 17

GDTMT-TR-S219 Wearable Tech 1 August 2019

About GlobalData

4,000 of the world’s largest companies make better and more timely decisions thanks to our unique data, expert analysis and innovative solutions delivered through a single platform.

GlobalData is one of the world’s leading providers of company operational data and strategic analysis, providing detailed information on tens of thousands of companies globally. Our highly qualified team of Analysts, Researchers, and Solution Consultants use proprietary data sources and various tools and techniques to gather, analyze and represent the latest and the most reliable information essential for businesses to sustain a competitive edge. Data is continuously updated and revised by large teams of research experts, so that it always reflects the latest events and information. With a large dedicated research and analysis capability, GlobalData employs rigorous primary and secondary research techniques in developing unique data sets and research material for this series and its other reports. GlobalData offers comprehensive geographic coverage across world’s most important sectors, focusing particularly on energy and healthcare.

Contact us Disclaimer If you have any more questions regarding All Rights Reserved. our research, please contact us: No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or RESEARCH otherwise, without the prior permission of the publisher, GlobalData. Cyrus Mewawalla The data and analysis within this report is driven by Head of Thematic Research GlobalData from its own primary and secondary research [email protected] of public and proprietary sources and does not necessarily represent the views of the company (or companies) +44 (0) 207 936 6522 covered. The facts of this report are believed to be correct at the CLIENT SERVICES time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that [email protected] GlobalData delivers will be based on information gathered +44 (0) 207 406 6764 in good faith from both primary and secondary sources, whose accuracy we are not always in a position to SAMPLEguarantee. As such GlobalData can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.