Wearables and augmented reality are growing markets. Wearable devices like smart watches and fitness trackers are expected to grow significantly over the next few years. The wearables market was worth $390 billion in 2017 and is expected to continue expanding rapidly. Augmented reality is also an emerging market focused on overlaying digital content on the real world. The augmented reality market was valued at $5.1 billion in 2016 and is projected to have a compound annual growth rate of 95% through 2016. Both wearables and augmented reality face challenges in designing for fashion, ensuring privacy, and developing compelling use cases to drive mainstream adoption.

1. Wearables & Augmented Reality
Business trends
Valery Komissarova
Business Development Director
03.06.14

2. Big picture

4. Internet of Things
Source: Xively

5. Consumer Robotics
$390 bln. market
2017
Source: Grishin Robotics

6. Wearable computing
A term that refers to computer-powered
devices or equipment that can be worn,
including clothing, watches, etc.

7. Market size

8. Market structure
• Consumer
– Wearable cameras
– Sports & activity trackers
– Smart clothing & textiles
– Smart glasses
– Smart watches
– Entertainment & gaming

10. Wearable tech investing

11. 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

15. Challenges

16. «The Dirty Secret of Wearables»

17. Design & fashion

18. Privacy & acceptance

20. Russia

21. Augmented reality
An overlap between the virtual and the
real world

22. 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

23. 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

24. $2 billion

28. Annual Revenues from
Mobile AR Apps
Source: Juniper Research

29. 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

31. Thanks
Questions?
Valery Komissarova
Business Development Director
03.06.14