Sensors for Wearable Electronics & Mobile Healthcare - From Technologies to Market - Yole Développement

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Sensors for Wearable Electronics & Mobile Healthcare - From Technologies to Market - Yole Développement
From Technologies to Market

  Sensors for
   Wearable
 Electronics &
Mobile Healthcare

                                        Report
                                           June © 2015
Sensors for Wearable Electronics & Mobile Healthcare - From Technologies to Market - Yole Développement
SENSORS FOR WEARABLE ELECTRONICS AND MOBILE HEALTHCARE
    Table of Contents

     •   Executive Summary                                 13    •   Forecasts on Global Wearable Market                                                 149
     •   Introduction, Definitions & Methodology           14    •   Forecasts by Device                                                                 156
     •   About Wearables                                   31    •   Forecasts by Sensor                                                                 195
     •   Applications and Market Segmentation              44                •   Sensor for Consumer

     •   Sensors for wearables                             52                •   Sensor for Healthcare

     •   Key Attributes and Mapping of a Wearable Device   59                •   Sensor for Industrial/Defense

     •   Devices & Sensors for Consumer Market             68    •   Technical Challenges                                                                213
                 •   Inertial Sensors                            •   Sensor Fusion                                                                       226
                 •   Microphone                                  •   Packaging                                                                           238
                 •   Gas/Environmental                           •   FDA Regulation and Supervision                                                      256
                 •   Pressure                                    •   Consumer Market Analysis                                                            274
                 •   NFC                                         •   Conclusion & Perspectives                                                           286
     •   Devices & Sensors for Healthcare                  96    •   Yole’s Presentation                                                                 291
     •   Devices & Sensors for Industrial/Defense          135

                                                                                     @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   2
Sensors for Wearable Electronics & Mobile Healthcare - From Technologies to Market - Yole Développement
WHO SHOULD BE INTERESTED IN THIS REPORT?
   Integrators                                                          Government agencies
       Understand the system level technology trends and                    Find the best technologies to integrate and the best suppliers
       requirements for each application                                    depending on your target markets
       Evaluate market potential for your components depending on           Understand what will be the future applications to develop
       performance and technology                                           and benefit from the recent advances in inertial technologies
       Understand the differentiated value of your products and             Define technology roadmap / evaluate the benefits of using
       technologies                                                         new technologies in end systems, design architectures for the
       Identify new business opportunities and partners                     next generation of systems
       Monitor and benchmark your competitor’s advancements                 Screen potential new suppliers able to provide new
                                                                            functionalities, or cost and size savings
   OEM, integrators                                                     R&D centers
       Evaluate the market potential of your product portfolio
                                                                            Evaluate market potential of future technologies and
       Define diversification strategies on new applications                products for new applicative markets
       Find the best technologies to integrate and the best suppliers       Identify the best candidates for technology transfer
       depending on your target markets
       Identify new business opportunities and partners                 Financial & strategic investors
       Have an exhaustive analysis of the competition on a broad            Understand the structure and value chain of the high-end
       range of IMU field                                                   inertial industry
                                                                            Estimate the potential of new technologies (tactical/inertial
   Material supplier, manufacturing service companies                       navigation MEMS, navigation-grade HRG…)
       Spot new business opportunities and prospects                        Get the list of main key players and emerging start-ups of this
       Understand the level of activity of your customers                   industry worldwide
       Understand what are the applications that will drive the
       volumes in 2017

                                                                                             @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   3
Sensors for Wearable Electronics & Mobile Healthcare - From Technologies to Market - Yole Développement
COMPANIES CITED IN THIS REPORT

    Adidas, AiQ, Apple, Atmel, Basis, Beurer, Bosch, Cambridge CMOS Sensors, CEA Liten, China Mobile,
    Cisco, Darpa, Fitbit, Fraunhofer, Garmin, Google, Hillcrest Labs, Honeywell, HTC, Huawei, IBM, Imec,
      Infomotion Sports Technologies, Intel, InvenSense, ITL, Jabra, Jawbone, Johnson & Johnson, Kionix,
     Knowles Electronics, LG, LumoBack, MC10 Inc., Marlow Industries, Medtronic, MEMSIC, Micropelt,
       Microsoft, Misfit, Motorola, Murata, Mio, Navisens, Nike, Nintendo, Nokia, NXP Semiconductors,
    OMRON, Philips, Polar, Pebble, Proteus, Raytheon, Samsung, SemTech, Sensirion, Sharp, Si Time, SiLabs,
     SmartThings, Sony, STMicroelectronics, Synkera Technologies, Teledyne DALSA, Texas Instruments,
     Tronics MicroSystems, TSMC,Variable Technologies,Vital Connect, Withings, Xiaomi, X-Fab MEMS
                                               Foundry, Zephyr…

                                                                          @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   4
Sensors for Wearable Electronics & Mobile Healthcare - From Technologies to Market - Yole Développement
INTRODUCTION
      2015, starting year for wearable ?

                 This document is an all new report of Yole Développement, about current trends in
                 wearable and mobile care devices. This report will cover technology trends, applications
  This report    trends, and will provide all the data and insights required to understand the market of
  synthetizes    wearable and mobile care.
 the status of
   the 2015
    sensor           Applications are described in a synthetic way in order to provide rapid access to key information (functions,
 industry for        specification, technical solution, geography, trends, and market evolution) and graphical representation of the
wearable and         industrial chain
 mobile care
   and also
future trends    This report combines the best of Yole’s knowledge in the consumer sensor industry and in
                 the medical sector. Yole regularly participates in industry conferences and tradeshows
                 worldwide, and has close relations with most market leaders. This report synthetizes the
                 status of the 2015 sensor industry for wearable and mobile care and also future trends.

                                                                                          @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   5
Sensors for Wearable Electronics & Mobile Healthcare - From Technologies to Market - Yole Développement
THE RISE OF THE WEARABLE ELECTRONIC
               Recent advances in telecommunications, microelectronics, sensor manufacturing and data analysis
               techniques have opened up new opportunities for using wearable technology in daily life to achieve a
               range of health outcomes.
               Why do we note such interest in wearable technologies and why do we see now such interest on the
               consumer market and not before?

               Many factors are converging to ease wearable technology integration including expanded wireless
               capacity (Bluetooth, Wi-Fi, WiMAX, and LTE), cellular market expansion who slows down and the
               need for technological companies to establish new revenue streams, in the continuously decreasing
               cost of data, and the significant backing from huge companies including Google, Apple, and others.
Technologies   However, in the past, the size of sensors and front-end electronics made it too difficult and offered
  are now      inaccuracy data to use them in wearable tech to gather physiological and inertial data.
  ready…
               With the advent of sensors integrated in smartphones initiated in 2007, wearable simply benefits from
               the smooth evolution of accurate technologies already integrated in smartphones.

                                                                   Today, with smaller circuits, microcontroller
                                                                   functions, sensor fusion and wireless data
                                                                   transmission, wearable sensors are now ready to
                                                                   flood the market...

                                                                              @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   6
Sensors for Wearable Electronics & Mobile Healthcare - From Technologies to Market - Yole Développement
DRIVERS FOR WEARABLE AND MOBILE CARE APPLICATIONS

                Level of integration                                                                                          Time

                                                             Wearable
                                                                       Everywhere Care
                                                            and Mobile
                                                               Care

                                            Point of Care
                                                                                     Smartphone &
Two markets
                                                                                    Tablet revolution
are mature to
perform well
                            Hospital Care                                                                      Feature
                                                                                                               Phones

                                                                             @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   7
Sensors for Wearable Electronics & Mobile Healthcare - From Technologies to Market - Yole Développement
MEMS & SENSORS ROADMAP
     From More than Moore towards Beyond Law
                                                                     TODAY
                            Industry competition                  Industry competition                         Industry Competition
                                Moore                          More than Moore                                Beyond Moore

                              Processing                             Sensing                                     Actuating
                             Information age                       Interaction age                             Enhancement age

   MEMS &
   Sensors                                                                                                                                      Telekinesis
  enable key
functionalities
      …                                                                                                                         Robotic
                                                                                                                                Servants
  Current                                                                                                Autonomous
battleground                                                                                               vehicles
   of the                                                                                 Drones
  industry
                                                                                            Smart
                                                                             Quantified     homes
                                                                               self
                                                              Smartphones
                     Personal Computers            Laptop           Tablets

                  1980                                 2010                                2030                                                   2040
                                                                   Acceleration

                                                                                              @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   8
Sensors for Wearable Electronics & Mobile Healthcare - From Technologies to Market - Yole Développement
WEARABLE: PART OF INTERNET OF THINGS WAVE
    The human is a connected object

                                   Sense                           Collect and transmit (& store)                                   Analyze + Services

                                           Applications
                Devices        …

An industrial
chain similar                                 …                                                               Secured
                                                                                                               Data
   to IoT                                             Biometrics
  chain…

                               …
                Measurements

                                                                                   Video conference, Email, SMS, Mail, Phone
                                                                                                         Feedback

                                                                                                    @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   9
Sensors for Wearable Electronics & Mobile Healthcare - From Technologies to Market - Yole Développement
MEMS & SENSORS : THE 5 SENSES…

                                                  Sight
                  CMOS Image    microbolometers
                    sensor

                                                                     Smell
                                                                                              Gas sensors

   MEMS &                               Hearing                                Taste
   sensors                                                                                      Humidity sensors

 devices bring    microphones
  increased
functionalities
      …

                                                                                                     Touch
                                                                                                                       Force & touch sensors

                                                          @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare     10
MARKET SEGMENTATION
     THREE PURPOSES

                          Manage
                           Illness          Healthcare/Medical

                                            Patient monitoring

Manage Health                                       …
      -
Manage Illness                           Wellness       Soldier/Worker
                                           …             … safety
      -
                                 …               Professional
   Manage                                                                  …
                                                    sport
 Productivity    Manage     Infotainment           …               Soldier/Worker                           Manage
                              Life style
                 Health                            Workload
                                                                     productivity                           Productivity
                                                  management
                              Consumer                     Industrial / Defense

                                                                 @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   11
ADOPTION ON THE CONSUMER MARKET
     Google Glass didn’t cross the small chasm…
                  Pre-chasm : requires an ambidextrous approach to product development alongside
                  marketing to achieve product-market fit

     Fitness                                                                                          making the transition between
  trackers will                                                                                       visionaries (early adopters) and
experiment the
big chasm very                                                                                          pragmatists (early majority)
     soon…
     whereas
 smartwatches
 are expected
  to cross the                       Google Glass
   big chasm
    thanks to
 smartphones

                               Innovators    Early adopters     Early majority   Late majority                           Laggards
                                                                                      @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   12
MEMS AND SENSORS LIFE CYCLE
     Many growing MEMS and sensors could benefit to wearable

Many sensors
are growing,
  and even
  more are
 emerging…

                     Emerging     Growing        Mature                            Declining

                                                          @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   13
KEY ATTRIBUTES OF WEARABLE TECH PRODUCTS

                                     Voice/Gesture
                                     recognition                                                                            Low Power consumption
                                                                          Hands-                                            Instant wake
                                                                           Free                                             Background working/sensing

                                                 Development
                                                     Platform                        Always-On
                  3th party apps
                   API partners                                                                                                      Accelerometer
     6 key          Accessories                                                                                                      Gyroscope
                                                                                                                                     IMU
attributes that                                                                                                                      Compass
  make a big                                                                                                                         Camera
  difference                                                                                                                         Microphone
                                                                                                                                     Environmental sensor
                                                 Attention-                          Environment
                                                  Getting                              -Aware
                  Less distracting with
                          notifications
                     Short interaction
                                                                         Connected           Wi-Fi
                                                                                             Cellular
                                                                                             Bluetooth
                                                                                             NFC
                                                     Source: MIT, KPCB                  @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   14
MAPPING OF A TYPICAL 2015 SMARTWATCH
     2015 Golden rule: Smaller sensors for a bigger battery

                                                                                                                             IMU
                                                       HRM                                                                   9DOF
                        Power Circuit                                    MCU/AP
                         Management
                                                                                                                             Heart Rate
                                                                               IMU                                           Monitoring
                           Wi-Fi
                         Bluetooth
   Available                GPS
  space and                                                                                  Average component size:
 battery size                                                                                6-Axis IMU : 3x3x0.8 mm3
limit sensor’s   Battery                                                                     9DOF : 3x3x1 mm3
integration…

                     Pictures courtesy of Apple Inc.          @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   15
APPLICATIONS BREAKDOWN – 2012/2020

               Until 2014, healthcare application has
               mainly driven the wearable market
               with more than 10Munits in 2013
               and reaching 16Munits in 2014.

               The consumer has taken the lead in
               2014 with the emergence of smart
 Consumer
               bands and smartwatches. We expect
 market will   a nice growth in 2015 with more
   exceed      than 60Munits. Especially in China,
200Munits by   with a new entrant, Xiaomi, selling
    2020       smart bands at low price, $15.

               Industrial market is in its infancy,
               applications require reliability and
               efficiency, which is not the case for
               now. We expect an early growth in
               2018/2019.

                                                        @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   16
SMARTWATCHES MARKET IN 2013, 2014 & 2015
                       2013 Smartwatches market share (Munits)                                                                    2014 Smartwatches market share (Munits)

                                                      Samsung                                                                                                                           Samsung
                                                        26%                                                                                                                               22%
                                                                                                                                Others,
           Others, Counterfeit &                                                                                              Counterfeit &
               Unlicenced                                                                                                      Unlicenced
                   48%                                                                                                            33%

                                       Total:                                                                                                                  Total:
                                     3.5Munits                                                                                                               5.7Munits

                                                                                                                                                                                              Sony
                                                       Sony                                                                                                                                   18%
                                                       15%

 And Apple                                                                                                                                  Pebble
                                                                                                                                             12%
disrupted the                                Pebble
                                              11%               2015 Smartwatches market share (Munits) (Forecast)                                            Motorola (Google)

  market…                                                                       Others, Counterfeit & Unlicenced
                                                                                                                                                                    15%

                                                                                              7%
                                                                                    Pebble
                                                                                      4%
                                                                               Sony
                                                                                4%
                                                                Motorola (Google)
                                                                      5%

                                                                     Samsung                   Total:
                                                                       8%                     26Munits

                                                                                                                   Apple
                                                                                                                   72%

                                                                                                                           @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   17
FITNESS/ACTIVITY TRACKER MARKET IN THE PAST AND NOW
                                                                2015 Fitness tracker market share (Munits) (Forecasts)
                                                                               Others, Counterfeit & Unlicenced
                                                                                             8%
                                                                                 Xiaomi
                                                                                   5%

                                                                         Misfit
                                                                          9%

                                                                                                 Total:
                                                                                               39.1Munits
                                                                                                                  Fibtit
                                                                     Jawbone                                      63%
   Fitness                                                             15%

tracker is a
fragmented     2013 Fitness tracker market share (Munits)                                                                    2014 Fitness tracker market share (Munits)
     and                 Others, Counterfeit & Unlicenced
                                       5%
                                                                                                                                       Others, Counterfeit & Unlicenced
                                                                                                                                                     6%
competitive                Misfit
                            5%
                                                                                                                                            Nike
                                                                                                                                             3%
  market                                                                                                                             Misfit
                                                                                                                                      9%
               Jawbone
                 14%

                                         Total:                                                                                                        Total:
                                       7.4Munits                                                                                                     17.1Munits
                                                                                                                           Jawbone
                                                                                                                             18%
                                                            Fibtit
                Nike                                        61%                                                                                                                          Fibtit
                15%                                                                                                                                                                      64%

                                                                                                                    @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare    18
GOLDEN RULE: SMALLER CHIPS, BIGGER BATTERY

                 We already highlighted the similarities between the wearables and the smartphones, but
                 they also shared technical challenges, with an additional challenge for the wearable :
                 allocated space is much smaller than ever.

                 Four challenges:

                 -   Size
Smaller chips,   -   Power consumption                                            Size
bigger battery
                 -   Connectivity
                 -   Accuracy
                                                                                 Power
                                                                               consumption

                                                                  Connecti
                                                                                                      Accuracy
                                                                    vty

                                                                          @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   19
APPLE WATCH TEARDOWN

                                   Broadcom
            Wi-Fi/Bluetooth/NFC/FM BCM43342                                               AMS
                                                                                          NFC Signal Booster
                                                                                          AS3923
                                   Skyworks
                   Wi-Fi LNA + switch and PA
                                                                                          NXP
                                                                                          NFC controller
                                           STM IMU
                                           LSM6DS3                                        Elpida
                                                                                          512Mb SRAM Memory
  Wearable                                                                                F440AAC
 devices are                         Dialog
very close to         Power Management Unit
                                   D2238A
smartphones                                                                               CPU Apple APL0778
     …
                        ADI Touch Controller
                                    AD7149                                                Toshiba/SanDisk
                                                                                          8Gb Flash Memory

                               Maxim Integrated
                                   Audio Codec                                            STM µC
                                    Audio Amp                                             STM32
                                                                   IDT
                                                       Wireless charger
                                                                 P9022                    NXP
                                                                                          Interface device

                      Source: ABI Research/Chipworks    Pictures courtesy of Apple Inc.                        @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   20
ACCELEROMETER
   Typical package footprint for inertial sensors used in mobile devices
            The market is still dominated by IDMs: STMicroelectronics and
            Bosch Sensortec
                                                                                                                                          Internal dev.
                Many newcomers choose a fabless business model. They follow the success of
                InvenSense

            Growth of MEMS product portfolio is also driving new strategies
                MEMS players are still very specialized in one type of device
                Only few players have been able to be more diversified
  Sensor              STMicroelectronics and Bosch mainly                                                                                     New
 vendors              Others are very focused. Indeed the expertise is very different from one
                                                                                                                                             sensor

 business             MEMS device to another. All players are trying to get market share with
 model is             new sensors but industrial processes are very complex
                                                                                                              Strategic
                                                                                                                                                                         Acquisition
evolving…             Some large MEMS players claim that their objective is to become large and              partnership
                      diversify MEMS vendors. But it will not be easy, as each type of sensor /
                      actuator is very different to another and as it takes time to bring it to the
                      commercialization level (with good quality and good yield to offer low
                      prices…).

            There are different strategies that are employed by MEMS players: Internal development.
            But it takes time and it is not easy for a new component
                Partnership with a specialist. e.g., STMicroelectronics with Omron for microphone
                Acquisition of existing development and expertise; e.g., InvenSense purchased the MEMS microphone
                business line of Analog Devices Inc. (ADI) for $100M.
                                                                                                      @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare       21
STMICROELECTRONICS IMU LSM6DS3

STMicroelectr
onics reduced
 the footprint
of their latest
  IMU by 50%
   to fit with
    wearable
requirements

                  Source: Reverse Costing Analysis – STMicroelectronics LSM6DS3 6-AXIS MEMS IMU – June 2015 - System Plus Consulting   @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   22
RELATED REPORTS

More reports
      on
   www.
i-micronews
    .com

                    @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   23
Market & Technology Report

                                        Wearable Electronics
                                        Sensors for Wearable Electronics & Mobile Healthcare

                                        Consumer, healthcare, and industrial will drive the rapidly-expanding
                                        wearable industry to a potential value of $90B by 2020. But how it
                                        will evolve, and who will succeed?

                                        Three markets will drive the wearable industry

                                        Wearable electronics is one of the consumer                    Until recently, wearable electronics were
                                        market’s hottest topics. Giants like Apple,                    often associated with the healthcare
                                        Samsung, Xiaomi, and Huawei are now                            market - typically, bulky medical devices
                                        competing for a slice of a very promising pie.                 with only a few features and not optimized
                                        Regarding our report’s analysis, we estimate                   for “customer-friendly” usage. Often times,
                                        that the wearable industry will reach 295M                     these devices (i.e. hearing aids and blood
                                        units by 2020, with a market value of $90B.                    pressure monitors) perform a single task and
                                        Three markets will drive this impressive                       are solely dedicated to patient monitoring
                                        growth: consumer, healthcare, and industrial.                  and/or well-being.     They are not “smart
                                        Wearable technology is expected to be                          devices” - their only mission is to accurately
                                        part of the IoT revolution, bringing useful                    complete a single task. We believe that
                                        information directly to the user in a more                     a large part of the healthcare market will
KEY FEATURES OF THE REPORT
•U  nderstanding of the wearable       natural and friendly way than with traditional                 evolve in association with the consumer
   landscape, applications, and         electronic devices. We expect the consumer                     market, eventually blurring the lines between
   market drivers                       market, which is mostly comprised of fitness                   healthcare and consumer devices. In fact, we
•	Wearable and healthcare              bands and smart watches to grow faster                         think that the healthcare market will slowly
   intermingling                        than the other two. The healthcare market,                     merge with the consumer one, resulting in
•	Consumer, healthcare, and            which covers devices like hearing aids, blood                  personalized medicine that involves self-
   industrial market landscape          pressure monitors, and back monitor sensors,                   monitoring of one’s health with smart and
•	Sensors portfolio for the wearable   is expected to grow at a lower rate, since this                reliable devices. However, these kind of
   market (inertial, pressure,
                                        market has already been growing for many                       devices, which require a highly accurate,
   biosensor, environmental, etc.)
                                        years. Regarding the industrial market, we                     highly reliable tracking of biological signs in
• Market forecasts 2015-2020
                                        expected slow, steady growth through 2019,                     a non-invasive fashion, are not expected for
• Technology trends and roadmap
• Analysis of business models           with a significant uptick commencing in 2020.                  another few years.

REPORT OUTLINE                                                            Wearable Applications Breakdown - 2012/2020
• Sensors for Wearable
                                                            300
   Electronics & Mobile Healthcare                                                                                                                   100
•P  DF & Excel file
                                          Volume (Munits)

                                                            250
•€  5,990 – Multi user license                                                                                                                      80
   (300+ slides)
                                                            200                                                                                              Value ($B)
                                                                                                                                                     60
• €4,990 – One user license                                150
   (300+ slides)                                                                                                                                     40
                                                            100
• July 2015                                                                                                                                         20
•3  00+ slides                                              50
                                                                                                                                                      -
                                                              0
Related reports                                                   2012   2013     2014       2015   2016   2017     2018       2019        2020
•6 -9 Axis Sensors Consumer
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•	STMicroelectronics LSM6DS3
   6-Axis IMU
                                                                                Industrial                        Total Value ($M)
•	Sensors for Home Health Care
   Applications                                                                                                            (Yole Développement, July 2015)

•	MEMS & Sensors for Mobile
   Phones and Tablets
•	Bosch Sensortec BME280 -             The “three horses of the wearable industry” have been
   Integrated Environmental             released…
   Sensor
•T echnologies & Sensors for the       Three device types are expected to                             evolved with two device types. The first
  Internet of Things: Businesses        successfully reach the market: smartwatch,                     type are wrist-worn devices that target the
  & Market Trends 2014-2024             smart glasses/HUD, and smart clothing.                         healthcare and consumer markets. It started
                                        Smart glasses and HUD are expected to                          many years ago, with wrist-worn devices
Find all our reports
                                        hit the market with high volumes around                        from players like Polar, Suunto, and Garmin,
on www.i-micronews.com
                                        2019. Specific to the consumer market, it’s                    operating in a niche market: sports. Another
Sensors for Wearable Electronics & Mobile Healthcare

                                                                             wave of smart bands appeared in 2008, fueled             Moreover, some technical and reliability issues
                                                                             by new players like Fitbit and Jawbone; this new         led to a chaotic experience for the first batch of
                                                                             generation mimics the smartphone approach                customers. Recently, a new tech wave occurred
                                                                             in that they use MEMS technologies to reduce             three years ago with players like Samsung and
                                                                             size, increase performance and decrease power            Pebble pushing the smartwatch market, but
                                                                             consumption. These smart devices were only               they failed to reach a mass market due to a
                                                                             able to track and digitalize the body’s real-            one-sided technological approach. Apple, the
                                                                             time activity via an accelerometer, which                latest entrant in the wearable landscape with
                                                                             delivered little added value to the customer.            its Apple watch, is expected to sell 16 - 20M
                                                                                                                                      units this year, which would quadruple the total
                                                                                                                                      number of devices that its competitors sold last
                                    250                                                                                               year (4.7M units in 2014). Why could the Apple
                                                   Wearable Applications Breakdown - 2012/2020
                                                                                                                                      watch achieve success? This report discusses
                          Volume (Munits)

                                    200
                                     250                                                                                              three factors: mature technology, ecosystem,
                                                                                                                                      and marketing.
                                    150
                      Volume (Munits)

                                     200
                                                                                                                                      Regarding the industrial market, we believe
                                    100
                                     150
                                                                                                                                      that smart glasses/HUD and smart clothing
                                            50
                                            100                                                                                       will be well-suited for industrial and military
                                                                                                                                      applications. Virtual reality HUD and smart
                                            050                                                                                       clothing will enhance workers’ and soldiers’
                                                  2012      2013      2014      2015      2016      2017    2018    2019      2020
                                                                                                                                      capabilities,  increasing    productivity   and
                                              0
                                                  Head-worn
                                                   2012    2013           Wrist-worn
                                                                        2014    2015       2016     Clothing
                                                                                                     2017    2018       Body-worn
                                                                                                                        2019   2020   security. Such a market is evaluated at around
                                                                                                                                      $4B by 2020.
                                                   Head-worn                 Wrist-worn              Clothing            Body-worn
                                                                                                                                      Wearable is certainly a promising industry – but
                                                                                                                                      who will profit? Wearable electronics’ market
                           Smartwatches vs Fitness Bands - Market Evolution (Munits)                                                  value is likely to grow from $22B in 2015 to
                                                                                                                                      more than $90B by 2020, with a CAGR of 28%.
                 350                                                                                                                  All these evolutions will probably lead to a mass-
                 300                                                                                                                  market adoption, here we expect more than
    Volume (Munits)

                  350
                 250                                                                                                                  134M, smartwatches by 2020, along with 1.3M
                  300
Volume (Munits)

                 200                                                                                                                  smart glasses/HUD by 2018. In this report, we’ll
                  250                                                                                                                 analyze the current wearable industry, what the
                 150
                  200                                                                                                                 landscape is like, who the key players, and how
                 100
                  150                                                                                                                 the industry will evolve.
                  50
                  100
                   0                                                                                                                  The wearable industry greatly interests big
                   502012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
                                                                                                                                      companies seeking a new revenue source once
                                     0                                                                                                the smartphone business levels off. This report
                                                          Smartwatches
                                             2012 2013 2014                   Sport/Fitness
                                                            2015 2016 2017 2018 2019 2020bands
                                                                                            2021 2022 2023 2024
                                                                                                                                      highlights the expected sensors as of today, and
                                                                   Smartwatches                   Sport/Fitness bands                 the upcoming technologies which can sustain
                                                  (Yole Développement, July 2015)
                                                                                                                                      such developments.

                                                                             MEMS enabler for smart devices with sensor fusion and
                                                                             context awareness
                                                                             Today, the MEMS sensors industry has                     Moreover, battery limitation is pushing the
                                                                             acquired from the smartphone market a strong             industry towards more optimization, even on
                                                                             experience in inertial sensors, microphones,             the hardware side, through either packaging
                                                                             and pressure or environmental sensors. Based             innovation or new designs with lower power
                                                                             on this experience, the MEMS players have                consumption.
                                                                             pushed the boundaries of performance and size.
                                                                             Sensors are now small enough, reliable enough,           Software is another area that’s acquiring value,
                                                                             and accurate enough to be included in a pocket-          with sensor fusion creating smarter sensors.
                                                                             sized device of only 9cm3, while delivering a            Such improvements have led to sublime new
                                                                             performance comparable to a smartphone                   features like context awareness or “always-on”
                                                                             from 2013! These sensors are the ones that               sensors, which has increased device intelligence.
                                                                             we’ll find in our wearable devices until 2018.           All these improvements will lead the global
                                                                             The integration of biosensors (HRM, sweat                sensors market for wearable from 112M units in
                                                                             sensor, skin temperature) is more difficult due          2014, to 835M units by 2020, which is proof that
                                                                             to lack of experience, and technical challenges.         this market is still in its infancy.
Market & Technology report

                                                 aPPlE WaTcH TEardoWn

                Broadcom
     Wi-Fi/Bluetooth/NFC
                                                            AMS
            FM BCM43342
                                                            NFC Signal Booster
                                                            AS3923

                Skyworks
Wi-Fi LNA + switch and PA
                                                            NXP
                                                            NFC controller

                  STM IMU
                  LSM6DS3                                   Elpida
                                                            512Mb SRAM Memory
                                                            F440AAC

                Dialog
  Power Management Unit
               D2238A
                                                            CPU Apple APL0778

     ADI Touch Controller
                 AD7149
                                                            Toshiba/SanDisk
                                                            8Gb Flash Memory

           Maxim Integrated
                Audio Codec                                 STM C
                 Audio Amp
                                           IDT
                                                            STM32                                                           auTHorS
                              Wireless charger                                                                              Guillaume Girardin works as a Market
                                        P9022
                                                            NXP                                                             & Technology Analyst for MEMS devices
                                                            Interface device
                                                                                                                            and technologies at Yole développement.
                                                                                   (Yole Développement, July 2015)
                                                                                                                            Guillaume holds a Ph.d. In Physics and
objEcTivES of THE rEPorT                                                                                                    Nanotechnology from Claude Bernard
                                                                                                                            University Lyon 1 and a M.Sc. in
300+ slides, providing:                                                                                                     Technology and Innovation Management
• Market data on sensors dedicated to wearable and mobile healthcare                                                        from EM Lyon School of Business.
• Unit shipments and revenue by sensor type
• Average selling price analysis and expected evolution
• Application focus on key existing markets and the most promising emerging ones
• Functions used, critical specification requirements, assembly level, and technology choices
• What are the major drivers? What will the market look like in 2020?
• An analysis of the major technology trends Evolution expected for current technologies:
  efficiency, price, etc.
• A deep understanding of sensors for the wearable industry, infrastructure, and players
  for the different business
                                                                                                                            benjamin roussel oversees MedTech
• An extensive list of sensor manufacturers worldwide, and their technology offer
                                                                                                                            activity (microfluidic and medical
• A list of key integrators worldwide                                                                                       technologies) at Yole développement.
                                                                                                                            Benjamin has supported many
 coMPaniES ciTEd in THE rEPorT (non exhaustive list)
                                                                                                                            companies in their innovation and
 Adidas, AiQ, Apple, Atmel, Basis, Beurer, Bosch, Cambridge CMOS Sensors, CEA Liten,                                        product development strategy, in making
 China Mobile, Cisco, Darpa, Fitbit, Fraunhofer, Garmin, Google, Hillcrest Labs, Honeywell,                                 the bridge between micro systems
 HTC, Huawei, IBM, Imec, Infomotion Sports Technologies, Intel, InvenSense, ITL, Jabra,                                     technologies and their applications in
 Jawbone, Johnson & Johnson, Kionix, Knowles Electronics, LG, LumoBack, MC10 Inc.,                                          diagnostics, pharmaceutical life science
 Marlow Industries, Medtronic, MEMSIC, Micropelt, Microsoft, Misfit, Motorola, Murata,                                      and medical devices industries. He holds
                                                                                                                            a Pharmacy diploma from the University
 Mio, Navisens, Nike, Nintendo, Nokia, NXP Semiconductors, OMRON, Philips, Polar, Pebble,
                                                                                                                            Claude Bernard Lyon, complemented by
 Proteus, Raytheon, Samsung, SemTech, Sensirion, Sharp, SiTime, SiLabs, SmartThings,
                                                                                                                            a master’s degree in Technology and
 Sony, STMicroelectronics, Synkera Technologies, Teledyne dALSA, Texas Instruments,                                         Innovation Management from EM Lyon
 Tronics Microsystems, TSMC, Variable Technologies, Vital Connect, Withings, Xiaomi, X-Fab                                  Business School.
 MEMS Foundry, Zephyr, and many more!

 TablE of conTEnTS
 • Executive Summary                                   13    • Forecasts on Global Wearable Market                   149
 • Introduction, Definitions & Methodology             14    • Forecasts by Device                                   156
 • About Wearables                                     31
                                                             • Forecasts by Sensor                                   195
 • Applications and Market Segmentation                44
                                                               > Sensor for Consumer
 • Sensors for Wearables                               52
                                                               > Sensor for Healthcare
 • Key Attributes and Mapping of a Wearable                    > Sensor for Industrial/defense
   device                                              59    • Technical Challenges                                  213    Sébastien clerc is a Medical Technologies
 • Devices & Sensors for Consumer Market               68
                                                             • Sensor Fusion                                         226    Analyst at Yole développement. After
     >   Inertial Sensors
                                                             • Packaging                                             238    graduating from Grenoble INP with
     >   Microphone
     >   Gas/Environmental                                                                                                  a Biomedical Technologies degree,
                                                             • FDA Regulation and Supervision                        256
     >   Pressure                                                                                                           he completed his training with a
     >   NFC                                                 • Consumer Market Analysis                              274    semester of Innovation and Technology
 • Devices & Sensors for Healthcare                    96    • Conclusion & Perspectives                             286    Management, during which he oversaw
 • Devices & Sensors for Industrial/Defense 135              • Yole’s Presentation                                   291    strategy and marketing.
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ABOUT YOLE DEVELOPPEMENT
   Founded in 1998, Yole Développement has grown to become a group of companies providing marketing, technology and strategy consulting, media
   in addition to corporate finance services. With a strong focus on emerging applications using silicon and/or micro manufacturing (technology or
   process), Yole Développement group has expanded to include more than 50 associates worldwide covering MEMS, Compound Semiconductors, LED,
   Image Sensors, Optoelectronics, Microfluidics & Medical, Photovoltaics, Advanced Packaging, Manufacturing, Nanomaterials and Power Electronics.
   The group supports industrial companies, investors and R&D organizations worldwide to help them understand markets and follow technology trends
   to develop their business.

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   • Strategy consulting                                       More information on www.yolefinance.com            analysis
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   More information on www.yole.fr                                                                              More information on www.i-micronews.com/reports

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Yole Développement
 From Technologies to Market

    @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   © 2015
FIELDS OF EXPERTISE
    Yole Développement’s 30 analysts operate in the following areas

                                 Imaging         Photonics

                   MEMS &
                   Sensors
                                                               MedTech

             Compound
               Semi.
                                                              Manufacturing
                        LED

                                Power                  Advanced
                              Electronics              Packaging
                                            PV
                                                               @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   25
4 BUSINESS MODELS

   o Consulting and Analysis                                   o Financial services
       •   Market data & research, marketing analysis             •   M&A (buying and selling)
       •   Technology analysis                                    •   Due diligence
       •   Strategy consulting                                    •   Fundraising
       •   Reverse engineering & costing                          •   Maturation of companies
       •   Patent analysis                                        •   IP portfolio management & optimization
                                                 www.yole.fr                                                       www.yolefinance.com
                                                                                                                    www.bmorpho.com

   o Reports                                                 o Media
       • Market & Technology reports                              •   i-Micronews.com website
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         analysis                                                 •   Technology magazines
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       • Cost Simulation Tool                                     •   Events
                              www.i-Micronews.com/reports                                                        www.i-Micronews.com

                                                                                  @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   26
A GROUP OF COMPANIES

                                      M&A operations
                                       Due diligences
                                        www.yolefinance.com

                                        Fundraising
                                  Maturation of companies
                          IP portfolio management & optimization
             Market,                   www.bmorpho.com

         technology and
             strategy            Manufacturing costs analysis
                              Teardown and reverse engineering
            consulting
                                    Cost simulation tools
                                         www.systemplus.fr
            www.yole.fr

                                         IP analysis
                                     Patent assessment
                                         www.knowmade.fr

                                          @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   27
OUR GLOBAL ACTIVITY

                      @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   28
RESEARCH PRODUCTS - CONTENT COMPARISON

                                                 Breadth of the analysis

                                                               Standard Reports

                                         Workshops

              Depth of the analysis

                                      Custom
                                      Analysis

                                                                Custom analysis scope is defined with
                                                                 you to meet your information and
                                                                          budget needs

                                                                                         @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   29
SERVING THE ENTIRE SUPPLY CHAIN

           Integrators and
              end-users

                         Device
 Our analysts            makers
    provide
    market
    analysis,
  technology
  evaluation,                Suppliers: material,
 and business                equipment, OSAT,
plan along the                  foundries…
entire supply
     chain

                                         Financial investors,
                                            R&D centers

                                                                @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   30
SERVING MULTIPLE INDUSTRIAL FIELDS

                                 Industrial and    Medical
                                    defense        systems
     We are
 working across
     multiples
  industries to
 understand the              Energy                     Automotive
impact of More-
   than-Moore
  technologies
 from device to
      system
                                                  Mobile phone
                                Transportation    and consumer
                                   makers          electronics
                                                                        From A to Z…

                                                                 @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   31
REPORTS COLLECTION
   • Yole Développement publishes a comprehensive collection of market & technology reports and patent analysis in:
       MEMS & Sensors
       Imaging
       Medical technologies (MedTech)
       Advanced packaging
       Power electronics
       Compound semiconductors
       OLED, LED & Laser diode
       Semiconductor Manufacturing
       Photovoltaics
       Batteries

   • Our reports are unmatched in quality and technology depth and typically include:
       Technology trends and evolution: costs, barriers, roadmaps, etc.
       Supply & value chain analysis: business models, relationships, value flows, etc.
       In-depth analysis of applications and market drivers: challenges, inflection points, etc.
       Market data ($, units, wafer starts, etc.)                                                                                                  www.i-Micronews.com

   • Every year, Yole Développement, System Plus Consulting and KnowMade publish +60 reports.
   • Take the full benefit from our Bundle and Annual Subscription offers.

                                                                                                   @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   32
OUR 2015 MARKET & TECHNOLOGY REPORTS PLANNING
   o MEMS & SENSORS                                                                         o LED
        − Sensors and Data Management for Autonomous Vehicles                                       −   LED Module
        − AlN Thin Film Markets And Applications                                                    −   OLED for Lighting
        − Sensors for Wearable Electronics And Mobile Healthcare                                    −   UV LED
        − Status of the MEMS Industry                                                               −   LED Phosphors Market
        − Uncooled IR Imagers
        − IR Detectors                                                                      o POWER ELECTRONICS
        − High End Gyro, Accelerometers and IMU                                                  − Power Packaging
        − Non-Volatile Memory                                                                    − Thermal Management for LED and Power
        − MEMS for RF filters and Antena Switches - BAW / SAW                                    − Power Electronics for Renewable Energy
                                                                                                 − Energy Management For Smart Grid And Smart Cities
   o IMAGING & OPTOELECTRONICS                                                                   − Status of Chinese Power Electronics Industry
        − Camera Module Packaging (Vol 1 : Market & Technology Trends / Vol 2 Teardowns &        − New Technologies For Data Center
           Reverse Engineering)                                                                  − Inverter Market Trends For 2013 – 2020 And Major Technology Changes*
        − Uncooled IR Imagers                                                                    − IGBT Markets And Application Trends
        − Wafer Level Optics                                                                     − Power Electronics for HEV/EV*
        − Status of the CMOS Image Sensors                                                       − Status of Power Electronics Industry
        − Machine Vision
                                                                                            o ADVANCED PACKAGING
   o MEDTECH                                                                                     − Advanced Packaging in Emerging Markets in China
        − Microfluidic for Sample Preparation                                                    − Status of the Advanced Packaging Industry
        − Microfluidic Applications                                                              − Supply Chain Readiness for Panel Manufacturing in Packaging
        − Sensors for Wearable Electronics And Mobile Healthcare                                 − WLCSP*
                                                                                                 − Flip Chip Business Update
   o COMPOUND SEMICONDUCTORS                                                                     − 2.5D & 3DIC Business Update
        − High Purity Alumina (HPA)                                                              − Fan-Out and Embedded Business Update
        − Sapphire
        − Wide Bandgap Materials For Power Electronics: SiC, GaN (and also Ga2O3, AlN,      o MANUFACTURING
          Diamond, Graphene… as a trend)                                                         − Lithography for MEMS, Advanced Packaging and LED
                                                                                                 − Thinning & Dicing Equipment for Advanced Packaging, MEMS, Photovoltaics, LED, CMOS
                                                                                                   Image Sensors
   •   Reports to be decided within 2015                                                         − Non-Volatile Memory

                                                                                                                               @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   33
OUR 2015 REPORTS PLANNING

   PATENT ANALYSIS by KnowMade
   o Patent Infringement (crossed analysis based on KnowMade and System Plus Consulting analysis expertise)
       − MEMS Microphone Applications
       − Infrared Imaging

   o Patent Investigation (crossed analysis based on KnowMade & Yole Développement expertise)
       − Power GaN
       − MEMS Gyroscope
       − 6-axis & 9-axis Inertial MEMS IMUs
       − Microbatteries
       − Embedded Active & Passive Packages
       − Interposer
       − Phosphors for LED

   TEARDOWN & REVERSE COSTING by System Plus Consulting
   More than 30 teardowns and reverse costing analysis and cost simulation tools to be published in 2015.

                                                                                 @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   34
OUR 2014 PUBLISHED REPORTS LIST
   MARKET & TECHNOLOGY REPORTS
                                                                                                     o POWER ELECTRONICS
   by Yole Développement                                                                                  − Power Electronics for HEV/EV
                                                                                                          − Inverters
   o MEMS & SENSORS                                                                                       − Gate Driver Unit Market for Power Transistors
         − Technologies & Sensors for the Internet of Things: Businesses & Market Trends 2014-2024
         − MEMS Microphone: Market, Applications and Business Trends 2014                            o PHOTOVOLTAICS
         − Status of the MEMS industry                                                                    − Emerging and Innovative Technology Approaches in the Solar Industry
         − MEMS & Sensors for Mobile Phones and Tablets
         − High End Gyroscopes and Accelerometer Applications                                        o ADVANCED PACKAGING
         − Inertial MEMS Manufacturing Technical Trends                                                   − 3DIC Equipment and Materials
         − New Detection Principles & Technical Evolution for MEMS & NEMS                                 − 3DIC & 2.5D TSV Interconnect for Advanced Packaging - 2014 Business Update
         − 6/9 DOF Applications in Consumer Electronics
   o IMAGING & OPTOELECTRONICS                                                                       o MANUFACTURING
         − Status of the CMOS Image Sensor Industry                                                       − Market & Technology Trends in Materials & Equipment for Printed & Flexible Electronics
         − Uncooled Infrared Imaging Technology & Market Trends                                           − Permanent Wafer Bonding for Semiconductor: Application Trends & Technology
         − Silicon Photonics
   o MEDTECH
         − Point of Care Testing: Applications for Microfluidic Technologies
                                                                                                     PATENT ANALYSIS
         − Solid State Medical Imaging: X-ray and Endoscopy                                          by Knowmade
   o COMPOUND SEMICONDUCTORS                                                                                 −   LED Based on Nano-wires Patent Investigation
         − RF GaN Technology & Market Analysis: Applications, Players, Devices & Substrates 2010-            −   GaN on Si Patent Investigation (LED, Power devices and RF Devices)
           2020                                                                                              −   New MEMS Devices Patent Investigation
         − SiC Modules, Devices and Substrates for Power Electronics Market                                  −   Non Volatile Memory Patent Investigation
         − GaN-on-Si Substrate Technology and Market for LED and Power Electronics
         − Power GaN Market
         − Graphene Materials for Opto & Electronic Applications
                                                                                                     TEARDOWN & REVERSE COSTING
         − Sapphire Applications and Market: from LED to Consumer Electronics                        by System Plus Consulting
   o LED                                                                                             More than 30 teardowns and reverse costing analysis and cost simulation tools to be published in 2014.
         − LED Packaging
         − LED Front-End Manufacturing Trends
         − LED Front-End Equipment Market

                                                                                                                                        @2015 | www.yole.fr | Sensors for Wearable Electronics & Mobile Healthcare   35
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