Wearables & Augmented Reality

Business trends

Valery Komissarova Business Development Director

03.06.14

Big picture

Internet of Things

Source: Xively

Consumer Robotics

$390 bln. market

2017

Source: Grishin Robotics

Wearable computing

A term that refers to computer-powered devices or equipment that can be worn,

including clothing, watches, etc.

Market size

Market structure

• Consumer

– Wearable cameras

– Sports & activity trackers

– Smart clothing & textiles

– Smart glasses

– Smart watches

– Entertainment & gaming

Wearable tech investing

Wrist bands are heating up

• 2014 – 17 mln. units total

– Basic bands (FitBit, Jawbone etc.)

– ‘Smart’ bands (Pebble, Galaxy Gear etc.)

• 2014 – 8 mln. units

• 2015 – 23 mln.

• 2017 – 45 mln.+

Source: Canalys 2014

Challenges

«The Dirty Secret of Wearables»

Design & fashion

Privacy & acceptance

Russia

Augmented reality

An overlap between the virtual and the real world

Market size

• $181.25 million – 2011

• $5,155.92 million – 2016

• CAGR of 95.35% from 2011 to 2016

• Developer investment in AR applications

– $670 million – 2013

– $2.5 billion - 2018

– Source: ABI Research

Source: Markets & Markets

Market structure

• By products (where used) – smartphones (the most attractive) – Tablets (2nd place) – eye wear – head mounted displays – head up displays

• By applications – Consumer

• gaming market, e-learning, GPS, online advertisement

– Industrial • defense, medical, and manufacturing and repair

– Retail & travel are among others interesting directions

$2 billion

Annual Revenues from Mobile AR Apps

Source: Juniper Research

Trends & challenges

• Enterprise – first • Mostly retail, marketing, publishing

– Impact on sales & loyalty is unclear

• Misguided expectations • ‘Feature technology’ • Tech is not quite ready yet • ‘Gimmick’ perception • Use-cases, use-cases, use-cases • User education • Not just startups anymore

Thanks

Questions?

Valery Komissarova Business Development Director

03.06.14