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Mars Market Insights Wearable Tech: Leveraging Canadian Innovation to Improve Health MaRS Market Insights Wearable Tech: Leveraging Canadian Innovation to Improve Health MaRS is a member of Authors Hadi Salah, Industry Analyst, Life Sciences & Healthcare, MaRS Market Intelligence Emily MacIntosh, Market Research Analyst, MaRS Market Intelligence Nirusan Rajakulendran, Market Research Analyst, MaRS Market Intelligence To download the original report, please visit www.marsdd.com/news-insights/mars-reports/. For further information, please contact Hadi Salah at [email protected]. Disclaimer: The information provided in this report is presented in summary form, is general in nature, current only as of the date of publication and is provided for informational purposes only. MaRS Discovery District, ©March 2014 Table of Contents Quantifying life: The rise of the Quantified Self movement 4 Wearables 5 What are wearables? 5 A brief history of wearables 6 Applications: Wearables for health 8 Table 1. Incumbents: Wearables for health 9 Health and wellness wearables: Benefits 10 Benefits to physicians and other health providers 10 Benefits to health payers 11 Benefits to patients 11 Health and wellness wearables: Shortcomings 12 Target customers 15 Market landscape: Global market for wearables 16 Market segments 17 Wearables for fitness and sports 18 Wearables for medical and health 19 Canada’s wearables startups and innovators 21 Startup profiles 22 Researchers 31 Startup challenges 33 Manufacturing 33 Value proposition 33 Design and style 33 Privacy 33 Investment snapshot 34 Investor profiles 35 The future of wearables 39 Predictive guidance 39 Multiple functionalities in a single device 39 Wearables as a platform 39 Many losers, few winners 40 Prices drop, new business models emerge 40 References 41 Quantifying life: The rise of the Quantified Self movement 4 Quantifying life: The rise of the Quantified Self movement Quantified Self, also known as lifelogging, That is what Quantified Self is all about. Tracking is the use of technology to capture, ourselves enables us to understand such things as why we gain weight, how we learn, what irritates measure, track and analyze data from a us and what makes us happy. This leads to greater person’s daily life. The types of data that self-awareness, which can spur us to improve the can be captured and tracked are infinite in status quo. What has changed over time is how we number, and the data collected are unique track our data. Instead of pen and paper and journal to the individual. For example, it could entries, technology has rendered tracking metrics simpler and automatic. Our repertoire of Quantified include environmental data to understand Self tools is large and continues to grow—from ideal temperatures for personal comfort, straightforward software and mobile apps to devices one’s calorie intake in a day, the amount such as smart scales to wearables that are continu- of exercise had, or the number of tries it ously worn by the user. took to learn a new process. Users tend to use software tools, apps and devices intermittently, recording data when they feel like it. Although the inception of the Quantified Self It’s an inconsistent and possibly biased approach. In movement can be traced back to Gary Wolf and contrast, wearables have exploded onto the scene Kevin Kelly of Wired Magazine who coined the in the last year mainly due their continuous and term in 2007, humans have been tracking their automatic tracking functionality, helping Quantified activities for decades, even centuries. One example “Selfers” log their metrics with minimal effort. This is Benjamin Franklin who, in his autobiography whitepaper explores wearables as an emerging published in 1791 1, described tracking 13 personal technology, with an emphasis on how it may impact virtues in a daily journal and marking his progress health and wellbeing. in 13 different charts, one for each virtue. Franklin’s motivation in quantifying this was to monitor self- improvement and to accomplish his ambitions. Wearables: What are wearables? 5 Wearables What are wearables? Wearables are small electronic devices, often consisting of one or more sensors and having computational capability. They are embedded into items that attach to the body, such as a user’s head, feet, arms, wrists and waist. They can resemble a watch, eyeglasses, clothing, contact lenses, shoes or even jewellery. Wearables either capture data or present data. The types of data collected could be as simple as the number of steps taken in a day or as complex as ECG or brainwave measurements (Figure 1). For output, wearables can convey information to the user through a variety of means, from the blinking of an LED light to a complex display of data. Figure 1: Incumbents: Examples of wearables, their location on the user, and sample data collected. Google Glass Lumo Back Calories Burned StepsTaken 1,302 6,538 Stress Level Body Temperature pts OMSignal 86 37° Sleep Blood Pressure 8.5HRS 120 HRS 4.0REM 80 Fitbit Heart Rate Adidas 845745 miCoach 352 University Avenue | Toronto, Ontario A brief history of wearables 6 A brief history of wearables Wearable computers have been around for several Since the 1970s, the miniaturization of components, decades. Two early pioneers are Georgia Tech’s the switch to digital from analog, superior computing Thad Starner, and Steve Mann. Starner strongly power, better battery technology and capacity, the advocated the potential of wearable computers incorporation of wireless connectivity and reduc- while completing graduate work at MIT and later tions of overall costs have resulted in an eruption working as a technical lead/manager on Google’s of new products entering the market. In 2014, at Project Glass. Mann is often described as the the Consumer Electronics Show (CES) in Las Vegas, “father of wearable computing” 2 for building a wearables emerged as a top trend, with new prod- head-mounted computer device as a high-school uct announcements from most major electronics student in the 1970s. Mann currently researches companies, and new startups covering a plethora of wearables at the University of Toronto. applications, with health and fitness being a key cate- gory 5 . A brief summary of notable events related to Credit is also due Ed Thorpe and Claude Shannon, wearables is shown in Figure 2. who invented a cigarette pack-sized pocket computer that was designed to predict roulette wheels in the early 1960s 3 —one of the first wearable computers. Later that decade, Hubert Upton, while working on a personal project, invented eyeglasses that were designed to aid with lip reading for hearing-impaired individuals 4 . This exemplified the potential health and wellness application of wearable technologies. A brief history of wearables: Figure 2 7 Figure 2: A brief history of wearables. 1960s 1970s 1980s Ed Thorpe and Claude Shannon HP releases the HP 01 Steve Mann builds the invented a cigarette pack-sized calculator watch WearComp1 – a backpack-based pocket computer that was system capable of displaying data designed to predict roulette on a head-mounted micro display wheels. The device was easily and wireless communications concealed in a shoe. 1990s 2000s 2010s Steve Mann developed the First generation iPhone is A plethora of consumer “Wearable Wireless Webcam” released, revolutionizing wearables hit the market, pocket computing. including Nike FuelBand, Fitbit, Google Glass Sources: 1980 Mann, Steve (2013): Wearable Computing. In: Soegaard, Mads and Dam, Rikke Friis (Eds.). The Encyclopedia of Human-Com- 1960 http://www.slashgear.com/cracked-glass-why-wearables-are puter Interaction. 2nd ed. Aarhus, Denmark: The Interaction Design the-next-security-maelstrom-04284709/ Foundation. http://www.interaction-design.org/encyclopedia/wear- able_computing.html 1970 http://www.media.mit.edu/wearables/lizzy/timeline.html 1990 http://www.interaction-design.org/encyclopedia/wearable_ computing.html Applications: Wearables for health 8 Applications: Wearables for health Health and fitness, and other medical applications, are areas where wearables are expected to play a transformative role. However, the application of wearable devices has potential in any industry where hands-free data collection is highly valued. Wearables can be generally divided based on consumer or non-consumer applications. These two categories can be further segmented based on the particular sector the product targets. The consumer market segments for wearables include: 6 General consumer Fitness and sports Fashion and apparel Home automation and remote identification Gaming and recreation The non-consumer market segments include: 7 Defence and security Enterprise and industrial Healthcare Wearables for health (including fitness, wellness and medical applications) are some of the early applications that have already gained traction. Notable examples are shown in Table 1. Their success so far is not a surprise, as they have already shown clear benefits to the user in a number of ways. Table 1. Incumbents: Wearables for health 9 Table 1: Incumbents: Wearables for health Nike Founded in the US in 1964.13 One of the world’s best-known sports brands. Product: Nike+ FuelBand, one of the best- known fitness wearables on the market 14 Fitbit Founded in 2007, Function: All-day activity tracking of calories headquartered burned and steps taken. 15 Activity is quantified in San Francisco. 8 using “Fuel”, a metric developed by Nike as Raised over $96 “a single, universal way to measure all kinds million from VC. 9 of activities” 16 17 Price point: $150–$170 USD Products: Two wristbands (Force and Flex) and two clip-on trackers (Zip and One), in addition to a wifi-enabled smart scale (Aria).10 Jawbone The Fitbit Premium service provides users with additional training guidance and reports 11 Founded in 2006, headquartered Functions: Tracks steps, distance covered, in San Francisco. calories burned, floors climbed, and sleep Raised $189 million quantity and efficiency in funding, valued at $1.5 billion. 18 Price points: $60–$130 USD 12 Product: UP wristband-based fitness tracker Function: Track steps, calories burned, distance covered, pace, active vs.
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