Hearables Market - CES 2017

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How is the market for consumer hearable devices developing? How is it converging with hearing health and medical devices? This presentation from CES 2017 is a short briefing on some of the key factors driving these trends in consumer hearables, medical devices, and hearing health.

Tecnologia

Hearables Market Trends
Dr. Steven LeBoeuf
President, Valencell Inc.

©2017 Valencell. Inc
Outline
• Definition of a “hearable”
• Key technologies driving hearables
• Market forces driving hearables
• Current state of market & growth

©2017 Valencell. Inc
Hearable Definition
A connected ear-worn device,
typically functioning as an audio
earbud, biometric monitor and/or
augmented hearing device.

©2017 Valencell. Inc
Four key technologies enabling hearables
Biometrics
• Vital signs (HR, BR, BP, RRi, etc.)
• Health & fitness assessments
• Biometric identification
Hearing enhancement
• Active acoustic noise cancellation
• Pass-through
• Active listening
Smart UI
• Voice control
• Intuitive motion control
• Intuitive biometric control
Cloud-based AI

©2017 Valencell. Inc
Market forces are driving the adoption of hearables
Market Force Growth Trend Relation to Hearables
Growth in Biometric Wearables 20 – 30% CAGR
Natural extension of fitness tech and consumers
exercising with headphones
Growth of Aging Population >50% growth over next 15 years
Generates demand for biometric hearing aids and
ear-worn medical devices
IoT & Human-Computer Interface >20% CAGR
Many signs point to voice being the next platform for
human-computer interaction
Introduction of True Wireless Headphones ~300%-500% growth in 2017
Opens up electronic real estate for integrating
advanced features
Removal of 3.5mm audio jack in many new
mobile phones
>10M phones Creates consumer need for wireless headsets

©2017 Valencell. Inc
Hearables growth will be >8X that of wearables
5%
CAGR
2016 2020
Headphones / Earbuds
(does not include bundling)
336 million units/year
• Personal
• Sports
• Gaming
• Media/Entertainment
• Corporate
Sources: FMI Research, IDC, Valencell
20%
CAGR
Wearables
102 million units/year
Hearables
~1 million units/year
Headphones / Earbuds
408 million units/year
• Personal
• Sports
• Gaming
• Media/Entertainment
• Corporate
• Audio aids
Hearables
Base + Health +
Bundling:
80 million units/year
Base:
40 million units/year
Wearables
214 million units/year
• Fitness bands
• Smart watches
• Sports watches
• Clothing
• Fitness bands
• Smart watches
• Sports watches
• Clothing
170%
CAGR

©2017 Valencell. Inc
Technical hurdles stand between “niche” markets
and mass consumer adoption
• Stable, seamless Bluetooth/wireless connectivity (no drop-outs)
• Balancing advanced features with size, comfort and power management
• Long-term comfort for extended wear use cases
• Compelling use cases to leverage advanced features
• Getting at least some hearables down to the $99 price point

©2017 Valencell. Inc
Summary
• Hearables are poised for tremendous growth
• This growth is being driven by several independent market forces
• Before mass market adoption (10M+ users) can be realized,
a few technical challenges remain

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Wearables and hearables that measure biometric signals like heart rate are different from other devices, because they have to interact with the human body and every human body is different. This makes testing and validation of the devices an important part of the product development process. Valencell operates one of the most experienced testing labs for biometric wearables and hearables, testing hundreds of devices over thousands of hours of testing every year.

Best Practices in Testing Biometric Wearables

Valencell, Inc

There have been a variety of announcements recently about wearable devices “new” capabilities around atrial fibrilation and arrythmia detection, hydration tracking, and more. These capabilities are being delivered by the same optical heart rate sensors using PPG that are found in many wearable devices today. These are not necessarily new capabilities and some have been proven capabilities for many years. In many ways we are just scratching the surface of what’s possible. This webinar will share details on all the things that have been scientifically validated possible with PPG, many of which you may not be aware of.

What Can You Do With A Heart Rate Sensor?

Valencell, Inc

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