The Internet of Things: reshaping the sport industry - Digital Transformation Monitor - europa.eu

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The Internet of Things: reshaping the sport industry - Digital Transformation Monitor - europa.eu
Digital Transformation Monitor

The Internet of Things:
reshaping the sport
industry
May 2017

     Internal Market,
    Industry,
    Entrepreneurship
    and SMEs
The Internet of Things: reshaping the sport industry - Digital Transformation Monitor - europa.eu
7                                                                            The Internet of Things:
                                                                               reshaping the sport
                                                                               industry
                                             © ekkasit919/Shutterstock.com

While initially dominantly found among runners, companies have started to expand their connected device offer to
additional sport markets, thus pushing innovation and technology in the entire sport industry. Traditional sports
companies have realized the importance of keeping up with the newest innovative trends to improve their sustainability.
At the same time, the IoT has offered new innovative companies the chance to enter a market longtime dominated by a
few traditional players.
                                                    Differing                brand   strategies   are   Consumer electronics
                                                    emerging
  1                                                 Sports apparel brands
                                                                                                        For those businesses focusing on
                                                                                                        consumer electronics, smartphones
                                                    The major sport apparel companies have              remain the main connected device. To

The race is on for                                  had to adapt to the IoT in order to
                                                    maintain their innovative and cutting
                                                                                                        expand their market presence, these
                                                                                                        companies rely heavily on partnerships

connected devices                                   edge image. The acquisition of “pure”
                                                    players (i.e. those specialised in
                                                                                                        with major apparel brands, such as
                                                                                                        Apple with Nike and HTC with Under

in sport                                            providing connected devices in sports),
                                                    such as Under Armour acquiring
                                                                                                        Armour.
                                                                                                        Pure Players
Sport is a key vertical in IoT                      Endomondo and Adidas acquiring
                                                    Runtastic, have helped these players                There are two types of pure players in
Today, sport has become one of the                  remain competitive despite connected                connected devices for sports; wearables
principle vertical markets for connected            devices being outside of their core                 manufacturers and sensor providers.
objects and the Internet of Things.                 competence.                                         Whereas the former is aimed at the
Broadly speaking, we see two types of                                                                   general mass market, the latter tends to
connected objects in this vertical:                 Sports accessory companies                          target top athletes and professionals.
general purpose connected objects (such             Historically positioned on the high-end
as smart watches and activity tracking                                                                  Internet Players
                                                    market targeting intensive sports users,
bracelets), and dedicated connected                 sports accessories (such as Garmin and              Faced with the ever increasing amounts
objects (such as pedals, rackets and                Polar) have steadily diversified into               of applications and connected devices,
balls).                                             other activities such as fitness, golf and          the Internet giants are aiming to create
                                                    swimming. They are also increasing their            an ecosystem, which aggregates personal
                                                    presence on the market by introducing               sporting data by providing platforms
   The connected sports                             their own connected bracelets.                      (such as GoogleFit, Apple HealthKit and
   devices market in 2021:                                                                              WatchKit).
                                                     Main stakeholders’ positioning in the connected sports value chain
           253M unit sales,
           37B EUR market

Reasons for introducing connected
devices into sport
The use of connected objects in the field
of sport pursues two main objectives.
The first objective is to measure the
sporting performance, also often
referred to as the concept of the
“Quantified Self”. The other objective is
to increase the safety and security of the
athletes which will be discussed in
greater detail below.

                                                     Source: IDATE

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The Internet of Things: reshaping the sport industry - Digital Transformation Monitor - europa.eu
The Internet of Things: reshaping the sport industry

                                             Comparison of key quantified self applications devoted to running

  2
Main objectives of
connected devices
in sport:
performance
measurement and
increased safety
Performance measurements - the
quantified self
Connected devices aimed at monitoring
running performances at the heart of the
connected devices trend in sports
Performance measurement is the
primary factor of connected devices
entering the world of sports. In
particular, performance measurement
for running has taken center stage for
connected devices in sport.
The running market has been
continuously growing for years. In
France for example, the number of
regular runners has doubled from 6
million in 2000 to 12 million in 2016.
The volume of runners thus presents a         * Excluding other application of the Groups
huge potential market, estimated at 1
billion EUR in 2016 according to the         Service offering and business model vary
French Federation of sport & leisure         between the applications
industries.
                                             As can be seen from the table, service
                                             offering varies: there are features to
   1 Billion EUR                             track and monitor performances (session
                                             statistics, guides, history), to motivate      Source: La montre connectee

                                             the        user     (challenges,      live
           Estimated French                  encouragement, stimulating music), to
                                                                                            Pricing strategies differ according to the
           market for running:                                                              brand
                                             promote interaction with the community
           12M regular runners               (publication     on    social   networks,      What is particularly interesting are the
                                             challenges) and to enhance the training        differences in approach to the pricing of
                                             sessions (music, stories).                     services. At one end of the scale is Nike,
This    positive    trend    has    been                                                    offering everything for free, whereas on
                                             Concerning interoperability with other
accompanied by the arrival of connected                                                     the other end of the scale one can find
                                             connected     objects  (such    as   a
devices and mobile applications allowing                                                    Adidas offering the bulk of its services as
                                             smartwatches, bracelets, and heartrate
runners to follow and measure their                                                         a premium offer (it should also be noted
                                             monitors), most models are compatible
performances. 65% of runners use a                                                          that Nike offers the least amount of
                                             with other wearable devices except for
smartphone (versus 44% in 2014), with                                                       services). Asics and Under Armour base
                                             the Nike application which only allows
40% launch a dedicated application upon                                                     their model on a generally free offer,
                                             interconnection with the iWatch. Such
their running session.                                                                      focusing on select paid services for the
                                             wearables allow the users to follow,
                                                                                            more experienced runners (personal
The table on the right summarises the        manage and analyse their performances
                                                                                            training    programs,     weather      and
four major quantified self running           in real time without having to take a
                                                                                            nutrition guides, VIP support and so on).
applications. It is estimated that each      device out of its place (typically the
application has tens of millions of active   smartphone). This is one of the key            IDATE estimates Adidas’ Runtastic
users worldwide. It is worth noting that     elements explaining the growth of              generates the most revenues, generating
all four of these applications are owned     connected devices within the sports            approximately EUR 220 million.
by a leading brand specialising in the       domain.
sport domain.

                                                                                                                                         3
The Internet of Things: reshaping the sport industry - Digital Transformation Monitor - europa.eu
The Internet of Things: reshaping the sport industry

A dedicated running mobile application -               An example of connected sportswear
a must for all sport apparels
All traditional sports apparel makers
now have a dedicated mobile running
application that has either been created
in-house within the Group (such as Nike
and Puma), or though a strategic
acquisition (Runtastic by Adidas,
Runkeeper by Asics, and Endomondo by
Under Armour). The importance here is
that these applications provide access to
a potential pool of customers that could
be interested in purchasing their more
“traditional” equipment, such as shoes,
clothes and other branded goods. To
remain a cutting edge sports brand, it is
increasingly becoming a prerequisite to
offer connected devices; the risks of
missing out on the increasing power of
digital in sport being simply too great.
Even connected sportswear!
The sports market is increasingly                      Source: Exoskin

focusing on specific technical devices,
                                                       The data is transmitted via Bluetooth to     Involving the professional sports
and some of the major brands such as
                                                       the users’ smartphones. A dedicated          market
Nike and Garmin are now looking at
                                                       application then allows the users to
connected      textiles.   Sensors     are                                                          Performance measurements play an
                                                       analyse the statistics, and to share their
integrated directly into the clothing,                                                              integral role in the world of professional
                                                       data with friends. The application also
allowing for more accurate data to                                                                  sports as can be observed on the case of
                                                       proposes various challenges such as the
improve performance measurement. At                                                                 Stats Sport, who provide around 140 of
                                                       buzzer beater, time challenge and free
present the development of connected                                                                their clients with the solution ViperPod.
                                                       throws,    providing      an    immersive
textiles primarily focuses on professional
                                                       experience to customers.                     Various objects are inserted into the
athletes. However, in the medium to
long term this trend is also expected to                                                            sportswear: four processors, a GPS, a
                                                       This connected basketball is available for
enter in the consumer mass market, as                                                               long range radio system, a cardio meter,
                                                       around EUR 180, and an American
its popularity increases and price points                                                           an accelerometer, a gyroscope and a
                                                       Football version is expected for Autumn
fall.                                                                                               digital compass. These are then
                                                       2016.
                                                                                                    connected to a dedicated tool which
The connected ball - connecting sports                 One of Wilson’s main objectives for          allows performance measurement in real
equipment                                              creating a connected basketball is to        time: distance run, heartrate, speed,
                                                       remain competitive against the video         acceleration and deceleration, metabolic
In the ball sports domain, Wilson has
                                                       game industry, which by its nature is an     charge, impact reporting, signs of tiring,
introduced the smart basketball. The
                                                       indoor activity and thus goes against the    stress levels, and so on.
Wilson X Basketball has multiple sensors
                                                       principle of practicing sports outside.
integrated,    allowing  for     various
                                                       Wilson thus targets the general mass
measurements        such as     shooting
                                                       market with its connected balls. At the
accuracy, shooting distance, most
                                                       same time however, more sophisticated
successful shooting zone, shooting
                                                       versions of the connected balls are
history, and so on.
                                                       planned for the longer term, to target the
                                                       professional markets.

 Wilson’s connected basketball
                                                                                                     Source: Stats Sports

                                                                                                    The large amounts of data gathered in
                                                                                                    this way can be used to prepare athletes
                                                                                                    for matches, to check recovery levels, to
                                                                                                    vary the training depending on physical
                                                                                                    attributes, the strategic positioning of the
                                                                                                    players, and so on. It can also be used to
                                                                                                    assist in the easing back of players from
                                                                                                    injury requiring specific training menus.
                                                                                                    The Irish and English national teams are,
   Source: Wilson                                                                                   for example, professional sports bodies
                                                                                                    using the ViperPod solution.

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The Internet of Things: reshaping the sport industry - Digital Transformation Monitor - europa.eu
The Internet of Things: reshaping the sport industry

The safety of athletes                                                                               Basic measurement data such as speed,
The safety of the athletes has always
been, and always will be the priority for     3                                                      distance and calories burned can be
                                                                                                     applied to a wide variety of sports. To
any sport. Connected devices are                                                                     this information, sport-specific data can
expected to further develop in order to                                                              being added, such as shooting accuracy
help keep athletes safe and secure.         Connected devices                                        for basketball, swing data for golf, or
                                                                                                     tricks and moves for skateboarding to
Connected caps to measure head impacts
                                            are spreading into                                       encourage the use of connected devices
                                                                                                     in these sports.
Reebok offers a connected cap for
practitioners of combat sports, American    various sports                                           This raw data can then be even further
football and hockey. The connected cap                                                               then complemented by applications that
measures the impacts received on the        The emergence of connected objects is
                                                                                                     analyse the data and offer services based
head, registering information on the        spreading to all sports as can be
                                                                                                     on the information received. Coaching
number, force and position of the           observed in the table below. While
                                                                                                     services, for example, inform the athlete
impacts. The cap also incorporates a        running remains the main sporting
                                                                                                     of past and current performances, and
real-time LED alert system, where green     activity incorporating connected devices
                                                                                                     suggest ways for improvement thus
signifies no problem, orange provides a     today, the use of connected devices is
                                                                                                     keeping the customer engaged with the
warning and red indicates danger to the     diversifying and spreading to a wide
                                                                                                     services provided.
user. The cap not only measures the         variety of sports.
moment of impact, but also the
movements which follow. Brain traumas,      The spread of connected devices to new sport activites
for example, are a result of head
                                                                                Type of
movements following the impact rather       Sport categories Sports
                                                                                measured data
                                                                                                     Services          Device/support object (brand)
then the impact itself. The cap is
                                                                               Speed, length,                           Smartwatches (Apple, Garmin,
available for around EUR 129.49, aimed                                         distance,                                 Samsung…)
at the general public.                                                         calories, heart                          Wirstband (Fitbit, Jawbone,
                                                             Running,          frequency,        Coaching, social        Runtastic)
                                            Athletic
                                                             jumping, throwing altitude, foot    sharing, weather       Shirt (Hexoskin, Vert, Athos)
                                                                               contact, foot                            Socks (Sensoria)
                                                                               landing, cadence,                        Shoe (Tune)
                                                                               steps, hydration                         Sole (Rcup)

                                                                                                                   Shirt (Vert)
                                                                                                                       
                                                                              Intensity, stress,                   Mat (SmartMat)
                                                                                                                       
                                                             Gymnastic,
                                                                              jump, amplitude,                    Bra (Sensoria)
                                            Gymnastics       aerobic,                            Coaching
                                                                              position, foot                      Wirstband (Moov)
                                                             dancesport, yoga
                                                                              pressure, speed                     Shoe (E-Traces)
                                                                                                                  Skipping rope (Sophia)

                                                                                                                  Watch (Garmin)
                                                                               Speed, length,
                                                                                                                  Wirstband (Speedo,
                                                                               distance, tempo,
                                                             Swimming,                                             Decathlon, Withings)
Source: Reebok                              Watersports
                                                             diving, waterpolo
                                                                               efficiency,      Coaching, safety
                                                                                                                  Headphones (Swimbot)
                                                                               position, water
Cycling helmet                                                                 contact
                                                                                                                  Headband (iSwimband)
                                                                                                                  Glass (Instabeat)

Chinese maker Livall has developed a                         Rowing,
                                                                                Number of waves                           Surf (Samsung)
connected cycling helmet. An LED device     Boating
                                                             canoeing, sailing,
                                                                                surfed, speed,
                                                                                                Coaching, social
                                                                                                                          Smartwatch (Glassy Pro One,
                                                             water skiing ,                     sharing, weather
on the back of the helmet allows the user                    surfing
                                                                                duration                                   Rip Curl)
to be visible at night, and is also
                                                                              Power, swing,
equipped with indicators to notify other                                      speed at impact,
                                                                                                                         Racket, bat, club (Piq, Zepp,
motorists when changing direction; a                        Tennis, table     time to impact,
                                                                                                                       
                                                                                                                         Sony)
dedicated device is attached to the                         tennis, baseball, attack angle,
                                                                                                                        Wirstband (Babolat, Smash)
                                                            softbal , golf,   tempo, position, 3D analysis,
handlebar to control these lights.          Racket or butts badminton,        rotation, spin,  vidéo analysis,
                                                                                                                        Helmet (Shockbox)
                                                                                                                        Hockey stick (Fwd Powershot)
                                                            squash, field     heart frequency, social sharing
In the case of a fall, the helmet                           hockey , ice      shock, impacts,
                                                                                                                        Shoe (IOFIT)
                                                                                                                        Field (Mojjo)
automatically sends a signal to a                           hockey            speed of stick,
                                                                                                                        Ralph Lauren (shirt)
                                                                              shot duration,
predetermined list. The helmet also                                           weight transfer
contains a hands-free kit, equipped with
                                                                                Speed, length,                        Ball (Wilson, Adidas, Inside
                                                                                                                       
a mic and speaker so that the rider can                                         precision, strike                     Coach…)
keep his or hands on the handlebar. The                                         force, shot                          Shirt (Vert, ViperPod, Cityzen
                                                             Soccer, football,
helmet is expected to be available for                       handball ,
                                                                                efficiency, zone     Coaching, game Sciences, Zebra)
                                                                                efficiency,          play, social    Capsule (BodyCap)
around EUR 180, or EUR 270 depending        Sports ball      basketball,
                                                                                rotation, spin,      sharing, live   Helmet (Shockbox)
on the support features included.                            volleyball , beach
                                                                                trajectory,          streaming       Basket (ShotTracker)
                                                             volleyball , rugby
                                                                                intensity, stress,                   Swatch (HoopTracker)
                                                                                jump, amplitude,                     Tooth protection (FITGuard)
                                                                                shock, impact                         Cap (Reebok)
                                                                                                                        Pedal (Connected Cycle)
                                                                                Tracking, speed,                        Bike (LeEco, Xiaomi,
                                                                                length, distance,                        Vanhawks...)
                                                             Cycling track,     calories, altitude, Coaching, 3D        Helmet (Livall, Volvo,
                                            Cycling /
                                                             road cycling ,     flashing lights,    analysis, vidéo,     Lifebeam…)
                                            skating
                                                             BMX                amplitude, air      social sharing      Shoe (Misfit)
                                                                                time, hauteur,                          Handlebar (SmartHalo)
                                                                                tricks, power                           Skate (Syrmo, Trace)

                                            Source: IDATE                                                               Wirstband (Moov)

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The Internet of Things: reshaping the sport industry - Digital Transformation Monitor - europa.eu
About the Digital Transformation Monitor
The Digital Transformation Monitor aims to foster the knowledge base on the state of play and evolution of digital transformation in
Europe. The site provides a monitoring mechanism to examine key trends in digital transformation. It offers a unique insight into
statistics and initiatives to support digital transformation, as well as reports on key industrial and technological opportunities,
challenges and policy initiatives related to digital transformation.
Web page: https://ec.europa.eu/growth/tools-databases/dem/

This report was prepared for the European Commission, Directorate-General Internal Market, Industry, Entrepreneurship and SMEs;
Directorate F: Innovation and Advanced Manufacturing; Unit F/3 KETs, Digital Manufacturing and Interoperability by the consortium
composed of PwC, CARSA, IDATE and ESN, under the contract Digital Entrepreneurship Monitor (EASME/COSME/2014/004)
Authors: Vincent Bonneau, IDATE and Laurent Probst, Bertrand Pedersen & Jill Wenger, PwC

DISCLAIMER – The information and views set out in this publication are those of the author(s) and should not be considered as the
official opinions or statements of the European Commission. The Commission does not guarantee the accuracy of the data included in
this publication. Neither the Commission nor any person acting on the Commission’s behalf may be held responsible for the use which
might be made of the information contained in this publication. © 2017 – European Union. All rights reserved.
The Internet of Things: reshaping the sport industry - Digital Transformation Monitor - europa.eu The Internet of Things: reshaping the sport industry - Digital Transformation Monitor - europa.eu The Internet of Things: reshaping the sport industry - Digital Transformation Monitor - europa.eu
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