smart wireless devices & the internet of me

Transcription

smart wireless devices & the internet of me
SMART WIRELESS DEVICES
& THE INTERNET OF ME
Whitepaper
www.juniperresearch.com
SMART WIRELESS DEVICES & THE INTERNET OF ME
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1.1 Introduction
Since the conception of the Web, Internet-connected devices have
expanded in every conceivable direction, from phones to absent
computing in the cloud. Cloud computing, in particular, has enabled the
growth of the Internet of Things in the last few years, allowing devices to
receive and transmit data. Since the introduction of a common standard
for low-energy communications began in the mid 2000s and became
ever-more common and efficient, we are now moving beyond the Internet
of Things to devices which become part of consumers’ personal space
when they are used. This is the Internet of Me.
The development of the smartphone/app store model has created an
ecosystem of applications, within which hardware peripherals can
enhance the smartphone’s functionality for specific purposes. This
section introduces the concept of the smart wireless device, which is
central to this research and developed in subsequent sections. It also
highlights current use cases for these devices in each of the segments
identified opposite.
Smart hardware accompaniments to the smartphone have only been
possible since the arrival of the iPhone created the app ecosystem
necessary for their development. They only became practical even more
recently as a critical mass market makes it worthwhile to develop such
devices. However Juniper Research believes that the smartphone,
furnished with a relevant app, is set to become a means of linking
external devices and peripherals to the cloud, thereby forming a central
1
Juniper Research defines a PAN as a computer network organised around an individual person. This covers
devices and connections under the purview of Task Groups 1-4 of IEEE 802.15, as well as including BANs (Body
point for a WPAN (Wireless Personal Area Network)1 which connects to a
wide range of apps, web-based portals or cloud-based applications.
Examples include a connected blood pressure monitor, a remote baby
alarm linked to the mobile network and a payment reader hardware
add-on. The coming together of smart hardware and companion apps
represents a further enhancement of the app ecosystem and one without
excessive development costs.
1.2 Terminology
1.2.1 Smart Wireless Accessories
Juniper refers to an app-enabled computing device (that is
a device which accepts input and processes that input)
that form part of a WPAN as a ‘smart wireless device’.
Typically, although not always, the connectivity of this network is enabled
through a mobile computing device, such as a smartphone.
A smart wireless device can often be understood as a piece of hardware
which links to a mobile device, often via a short-range wireless
technology such as Wi-Fi or Bluetooth. The device will typically have an
associated app, which will add value to the data received from the
hardware device. In addition, data may be uploaded to an online portal
where data analysis and presentation may take place.
Area Networks), covered under Task Group 6 of IEEE 802.15. For further clarity on this issue, please see section 1.3
and figure 1.1
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1.2.2 Smart Wearable Devices
The wearables market is a subset of the wireless devices market that has
gained a large amount of industry attention.
Juniper defines a ‘smart wearable device’ as an
app-enabled computing device (that is a device which
accepts input and processes that input) which is worn on,
or otherwise attached to, the body while being used.
In most cases a wearable device is also a fashion accessory. Most
wearable devices are always on and accessible at any time, with a
constant interaction between the user and the device.
Figure 1: Smart Wireless Devices and Smart Wearables Overlap
Smart Wireless Devices
(WPAN)
Smart Wearable Devices
(BAN)
This definition covers a wide range of devices from watches to displays
which can either work independently or in conjunction with an external
platform, such as a smartphone or tablet.
Source: Juniper Research
1.3 Use Cases
1.3.1 Consumer Electronics Smart Wireless Accessories
The combination of smart mobile devices equipped with intuitive
touchscreen interfaces, with the onset of readily accessible consumeroriented apps, means that it has become relatively straightforward for
consumers to understand the whole connected devices concept. CE
smart wireless devices have emerged for a variety of use cases ranging
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from baby monitors to games controllers, smart video eye-wear to
intelligent key fobs.
Figure 2: Square Stand and Chip Card POS Accessories
Even in the wearables space, there are sharp divisions on where different
devices are positioned and used. Consumer smart glasses and many
multimedia devices (such as the Oculus Rift headset and Samsung’s
Gear VR) emphasise an immersive experience, grounded in AR, while
smartwatches emphasise data tracking and the convenience of not using
a smartphone for many tasks.
However, there may not need to be a single unifying use case due to the
nature of the smartphone has an ‘everything device’.2 The ability of
smartphones to incorporate device functionalities as apps is both a risk
and an opportunity for the smart wireless device market. On the one hand
if a device is too dependent on app functionality it could potentially be
displaced by app-only offerings (as is the case with more basic fitness
tracking devices), but the flexible app platform accompanied by uniform
connectivity technologies means that it is easy for consumers to
incorporate peripherals into their lifestyles in a way that would not be
possible if they were interacting with the device alone.
1.3.2 Payment Smart Wireless Devices
Payment smart wireless accessories have seen the strongest take-up
among small and medium-sized businesses. Many of these businesses
do not necessarily have the outlay for dedicated POS (point-of-sale)
hardware, but still need the functionality to process payments in a similar
manner.
2
Mark Shedd, Director of Snapdragon Marketing at Qualcomm, speaking at Qualcomm Technology Update event in
December 2014
Source: Square
The combination of digitisation of the POS mechanism, but not
necessarily the payment, opens an opportunity for vendors of POS
hardware to convert their existing payment products into smart wireless
devices that link up with these app-based platforms via a mobile POS
device. This is already being done by some mobile payment solution
companies. For example, Square allows a devices to be connected to a
range of existing POS hardware, as well as enabling a tablet to become a
POS hub through Square’s own payment hardware.
1.3.3 Fitness and Healthcare Smart Wireless Accessories
While the functionalities of fitness and healthcare devices were, for much
of 2013 and 2014, becoming one of positioning more than technological
capabilities, the FDA (Food and Drug Administration) draft guidance
issued on ‘Low Risk General Wellness Products’ released in January
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2015 has reinforced this difference to the point where they will need to be
considered as separate categories in future, as use cases and
components between the 2 device types begin to diverge.
i. Fitness Accessories
Fitness trackers have been around for several years now and are the
most widely used wearable devices, with no sign of the number of
available devices stopping yet. Consolidation is to be expected in this
market due to the wide range of similar devices, as well as smartwatches
that are able to offer many of the same measurements, although the
range of price points available is unlikely to change and thereby continue
category growth.
The key to unlocking this use case is understanding how the data
generated by the wearable can be used to drive a benefit for the
consumer. The exact nature of the niche needs to drive this benefit and
will differ again depending on the type of target the benefits apply to.
Corporate wellness programmes used to reduce health insurance costs
need to be focused and understood by the company buying into the
programme, as well as the employees with the devices on their bodies.
This targeted use of the data, as well as much of the value deriving from
long-term usage, means that simple consumer-facing devices that track
basic metrics face an uncertain future. With multiple studies showing high
abandonment rates and basic functionalities increasingly being integrated
into smartwatches and more complex fitness devices, device vendors will
have to rely on either more innovative software to drive engagement
beyond mere measurement.
ii. Healthcare Accessories
Beyond the mere quantification of biometric data, many traditional
medical devices are becoming digitised. These typically track metrics
such as heart rate, sleep patterns and activity levels in much the same
way as fitness trackers, but also track more specialised outputs. This is
primarily about connecting devices to enhance preventative care, as part
of an effort to help healthcare providers reaching crisis stage in care
delivery.
Figure 3: iHealth Wearable Pulse Oximeter
Source: iHealth
1.4 Market Forecast Summary
Given the current trend towards hardware homogenisation and market
saturation in the consumer space, it is likely that the more advanced
consumer smart wireless devices will gravitate towards a ‘freemium’
model, providing devices and basic services for free, while monetising
advanced features and interactions.
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The segments currently gaining the most traction for this model are
healthcare and fitness devices.

Juniper Research expects 12.9 million users to be engaged with these
paid-for service platforms by 2019, with developed markets with large
healthcare infastructures taking the majority of unit sales.

Fitness services are increasingly focusing on the meaning behind the
data, rather than simple data tracking itself. We do not expect
data-driven premium analytics to gain much traction with consumers, as
there are already many free analytics platforms available.
Figure 4: Service Revenue from Health and Fitness Smart
Wireless Devices ($m) Split by 8 Key Regions in 2019:
$1.8 billion
Source: Juniper Research
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Order the Full Research

Segment splits by consumer electronics, fitness, healthcare, payments
and enterprise.
Smart Wireless Devices: CE, Enterprise, Fitness, Healthcare,
Payments 2015-2019

A ‘what-if’ analysis tool that allows users to manipulate Juniper’s market
and forecast data for 13 different metrics.
Juniper’s Smart Wireless Device research is the only service providing
end-to-end analysis for this new and fast moving device ecosystem. The
research maps the future path for app enabled peripherals, providing a
complete assessment for 5 device segments: consumer electronics,
fitness, healthcare, payments and enterprise.
Key Features
The PowerPoint Slide Set

Key market trends, cross-segment drivers and constraints.

Forecast methodology.

Key forecast commentaries.

Evaluates the development of the smart wireless devices ecosystem,
on a market-by-market basis.

Provides expert analysis of the relevant business models identifying
how these disparate markets are being monetised.
Author: James Moar

Includes interviews with leading players across the value chain, such as
CSR, iHealth, Square, Ubimax, and Vuzix.
Contact Jon King, Business Development Manager, for more information:
[email protected]

Details a capability and capacity assessment for key players, together
with a vendor market positioning matrix and Belbin Analysis.
Juniper Research Ltd, Church Cottage House, Church Square,
Basingstoke, Hampshire RG21 7QW UK
Publications Details
Publication date: March 2015
The Interactive Forecast Excel (IFxl)

Over 7,000 data points in 74 tables.

Country level data splits for: Canada, China, Germany, Japan, South
Korea, UK and US, as well as 8 key regions.
Tel: UK: +44 (0)1256 830001/475656 USA: +1 408 716 5483
(International answering service) Fax: +44(0)1256 830093
http://www.juniperresearch.com