Understanding the Connected Health and Wellness Market

Understanding the Connected Health
and Wellness Market
Kevin Tillmann
Senior Research Analyst, CEA
ktillmann@CE.org
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Copyright © 2014 Consumer Electronics Association. All Rights Reserved. This presentation may
not be reproduced, distributed or used, in whole or part, without prior written approval of the
Consumer Electronics Association.
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not be reproduced, distributed or used, in whole or part, without prior written approval of the
Consumer Electronics Association.
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not be reproduced, distributed or used, in whole or part, without prior written approval of the
Consumer Electronics Association.
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not be reproduced, distributed or used, in whole or part, without prior written approval of the
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Copyright © 2014 Consumer Electronics Association. All Rights Reserved. This presentation may
not be reproduced, distributed or used, in whole or part, without prior written approval of the
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Pedometers remain the most popular fitness devices owned by
adults, but dedicated wearable fitness devices have tripled YOY
Pedometer
31%
Fitness video games
21%
18%
Heart rate monitor
20%
12%
Fitness apps
19%
7%
Digital weight scale
13%
Calorie tracker
Dedicated wearable fitness device
16%
9%
3%
9%
3%
BMI scale
6%
Fitness GPS
6%
9%
8%
7%
Smart watch
2%
Sleep tracker
1%
Motion sensors in sports equipment
1%
2012
14%
7%
Lap counter
2013
20%
8%
Digital sports watch
Accelerometer
26%
18%
Portable blood pressure monitor
37%
75% of consumers
own a fitness CE
product, up from
61% in 2012!
4%
3%
3%
25%
None of these
39%
Base: Online U.S. adults (n=1,006)
Q9B. Which of the following fitness technologies, if any, do you PERSONALLY own?
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Who Owns Wearable Fitness Devices?
59%
41%
36%
32%
24%
32%
22%
21%
13%
Male
Female
11%
18-24
25-34
35-44
45-54 55+ years
years old years old years old years old
old
11%
Income
<$25K
Income Income
between between
$25K$50K$50K
$75K
Income
>$75K
Base: Online U.S. adults who own a dedicated wearable fitness device (n=89)
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Recommended Guidelines
67%
55%
of wearable fitness device owners
of wearable fitness device owners
Base: Online U.S. adults who own a dedicated wearable fitness device (n=89)
Q3. Thinking about all the physical activities you do in an average week, would you say you meet either of the minimum
American Heart Association recommended activity levels below?
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Dedicated wearable fitness devices show largest gain
in purchase intent YOY for next 12 months
Dedicated wearable fitness device
Fitness apps
Fitness video games
Calorie tracker
Heart rate monitor
Digital weight scale
Pedometer
Smart watch
BMI scale
Portable blood pressure monitor
Digital sports watch
Fitness GPS
Sleep tracker
Motion sensors in sports equipment
Lap counter
Accelerometer
13%
3%
13%
6%
13%
9%
13%
9%
12%
8%
2013
11%
8%
2012
10%
10%
9%
9%
5%
8%
4%
8%
6%
6%
6%
3%
5%
1%
4%
1%
5%
7%
60% of adults plan
to purchase a
fitness CE product
for themselves in
the next year
4%
Base: Online U.S. adults (n=1,006)
Q9C. Which of the following fitness technologies, if any, do you plan to purchase within the NEXT 12 MONTHS for YOURSELF?
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Who Wants to Buy Wearable Fitness Devices?
50% 50%
43%
35%
23% 22%
22%
18%
16%
12%
9%
Male
Female
18-24
25-34
35-44
45-54 55+ years
years old years old years old years old
old
Income
<$25K
Income Income
between between
$25K$50K$50K
$75K
Income
>$75K
Base: Online U.S. adults who plan to purchase a wearable fitness device in next 12 months (n=130)
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Recommended Guidelines
67%
57%
of potential wearable fitness
device buyers
of potential wearable fitness
device buyers
Base: Online U.S. adults who plan to purchase a wearable fitness device in next 12 months (n=130)
Q3. Thinking about all the physical activities you do in an average week, would you say you meet either of the minimum
American Heart Association recommended activity levels below?
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Consumers look to sporting goods retailers, mass
merchants and online retailers to get their fitness tech fix
Sporting goods retailer
31%
Mass merchant (e.g., Kmart, Wal-Mart or Target)
30%
Online - at a retailer's website
26%
General electronics store (e.g., Best Buy)
16%
Online - at a manufacturer's website (such as Garmin.com or Apple.com)
9%
Online - at an auction website
8%
Warehouse club, such as Sam's, BJ's or Costco
8%
Fitness center/gym
8%
Drug/Grocery store, such as Safeway or Walgreens
7%
Department store, such as Sears
7%
Specialty electronics store (e.g., Radio Shack)
5%
Online - at a free classified ad website
4%
Television shopping channel
3%
Somewhere else
3%
Online - at a deal of the day or flash sale site
2%
Local independent electronics store
2%
Not sure
1%
Did not shop for fitness technologies in past 12 months
34%
Base: Online U.S. adults (n=1,006)
Q3. Where have you shopped for fitness technologies in the PAST 12 MONTHS?
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Most important features for potential fitness device buyers
include price, battery life and size/fit
(Net % Very Important + Important)
Price
96%
Battery life
95%
Size/fit
95%
Water resistance
90%
Ease of cleaning
89%
Weight
88%
Built-in screen or user interface
84%
Smartphone or tablet connectivity
80%
Style (color/design/fashionable)
69%
Built-in wireless or 4G connection
66%
Brand
65%
Bluetooth
46%
Base: Online U.S. adults who plan to purchase a wearable fitness device in next 12 months (n=130)
Q14. How important are the following features in the wearable fitness technologies you plan to purchase for yourself in the next 12 months?
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Key statistics to track include calories burned, distance,
heart rate and steps taken
(% Very Important)
Calories burned
64%
Distance
60%
Heart rate
56%
Steps taken
54%
Weight
51%
Calories consumed
46%
Blood pressure
40%
Cholesterol
33%
Body temperature
33%
Time standing
32%
Sedentary behavior
28%
Blood sugar
28%
Time sitting
Brainwaves/EEG
26%
19%
Base: Online U.S. adults who plan to purchase a wearable fitness device in next 12 months (n=130)
Q15A. Thinking about the wearable fitness tech you plan to purchase in the next 12 months, how important is the ability to track the following
statistics when deciding which device to purchase?
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Almost half of wearable fitness device owners use
them daily, another third a few times per week
Once or twice a
month, 6%
A few times a year,
2%
Never, 2%
Once a
week, 11%
Every day, 47%
A few times per
week, 32%
Base: Online U.S. adults who own a dedicated wearable fitness device (n=89)
Q11. How often do you currently use the fitness technologies you personally own?
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Motivation, monitoring goal progress and physical
activity levels are the key reasons for use
To help keep me motivated
52%
To help monitor my progress towards my fitness goal
47%
To monitor my physical activity level/intensity
46%
To make exercising more enjoyable
38%
To monitor my fitness measurements
34%
To help me know when I am at peak performance
31%
It was recommended to me by family and friends
26%
To help give me guidance on what exercises to do
22%
To help me to relax
21%
To help give me guidance on what to eat
19%
To help me reduce my stress level
19%
To monitor my stress level
19%
My doctor or physician recommended it
15%
To help me train for a race or competitions
15%
My personal trainer recommended it
To reduce my health insurance costs
13%
9%
Base: Online U.S. adults who own and use a dedicated wearable fitness device (n=87)
Q12. Why do you use the fitness technologies you own?
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Positive reinforcement and competition are the most
compelling motivators for less frequent users
47%
Positive Reinforcement
43%
Competition
If the device gave you more positive
feedback when you accomplished your goals
If the device allowed you to compete with
yourself and/or other users (people you may
know or people who inspire you, such as
athletes)
38%
25%
Gamification
Social Networking
If the device turned your activities into a game
and/or allowed you to keep score
If the device allowed you to share and discuss
your results on social networking websites with
your friends and had strong privacy options
Base: Online U.S. adults who own and use a dedicated wearable fitness device less than every day (n=47)
Q13. Which of the following would encourage you to use your fitness technologies more often than you do now?
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My Fitness Pal and Nike Training Club/Fitness are the
most used fitness apps
My Fitness Pal
21%
Nike Training Club/Fitness
11%
Heart rate monitor
5%
Lose it!
5%
Runkeeper
5%
Calorie counter
4%
Endomondo
4%
Cardio tracker
3%
Fitocracy
3%
Map My Run
3%
MapMyFitness
2%
Map My Walk
2%
Other
24%
Q. You mentioned that you have used fitness apps in the past 12 months. What is the one fitness app you have used the most?
Base: Online U.S. adults who have used fitness apps (n=101)
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Fitness app users rely on free options and stick to a
couple of primary apps
Money Spent on Fitness Apps
in Past Year
Number of Fitness Apps Used
in Past Year
$11 or
more
7%
Three
16%
Four or
more
5%
$1-10
22%
One
48%
Two
31%
$0
71%
Average Amount Spent:
$8.57
Average # of Apps Used:
1.82
Q. How much money would you estimate you have spent on fitness apps in the past 12 months?
Q. How many different fitness apps have you used in the past 12 months?
Base: Online U.S. adults who have used fitness apps (n=101)
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Consumer Electronics Association.
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Takeaways
• Exploding market growth – is it sustainable?
• Key demographics for wearable fitness devices remain
younger, affluent consumers in good fitness –
opportunities in other segments?
• Tracking workouts and monitoring fitness statistics are
huge motivators – position devices as “partners” instead
of “tools”
• Devices have become part of the daily routine for owners
– goals are addicting!
Copyright © 2014 Consumer Electronics Association. All Rights Reserved. This presentation may
not be reproduced, distributed or used, in whole or part, without prior written approval of the
Consumer Electronics Association.
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