The Internet of Things: reshaping the sport industry - Digital Transformation Monitor - europa.eu
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Digital Transformation Monitor The Internet of Things: reshaping the sport industry May 2017 Internal Market, Industry, Entrepreneurship and SMEs
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 2
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 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. 4
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) 5
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.
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