Digital Transformation Monitor

The Internet of Things:reshaping the sportindustry

May 2017

Internal Market,Industry,Entrepreneurshipand SMEs

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The Internet of Things:

reshaping the sport

industry

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© ekkasit919/Shutterstock.com

While initially dominantly found among runners, companies have started to expand their connected device offer toadditional sport markets, thus pushing innovation and technology in the entire sport industry. Traditional sportscompanies 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 afew traditional players.

Differing brand strategies areemerging

Sports apparel brands

The major sport apparel companies havehad to adapt to the IoT in order tomaintain their innovative and cuttingedge image. The acquisition of “pure”players (i.e. those specialised inproviding connected devices in sports),such as Under Armour acquiringEndomondo and Adidas acquiringRuntastic, have helped these playersremain competitive despite connecteddevices being outside of their corecompetence.

Sports accessory companies

Historically positioned on the high-endmarket targeting intensive sports users,sports accessories (such as Garmin andPolar) have steadily diversified intoother activities such as fitness, golf andswimming. They are also increasing theirpresence on the market by introducingtheir own connected bracelets.

Sport is a key vertical in IoT

Today, sport has become one of theprinciple vertical markets for connectedobjects and the Internet of Things.Broadly speaking, we see two types ofconnected objects in this vertical:general purpose connected objects (suchas smart watches and activity trackingbracelets), and dedicated connectedobjects (such as pedals, rackets andballs).

Reasons for introducing connecteddevices into sport

The use of connected objects in the fieldof sport pursues two main objectives.The first objective is to measure thesporting performance, also oftenreferred to as the concept of the“Quantified Self”. The other objective isto increase the safety and security of theathletes which will be discussed ingreater detail below.

The race is on forconnected devicesin sport

1Consumer electronics

For those businesses focusing onconsumer electronics, smartphonesremain the main connected device. Toexpand their market presence, thesecompanies rely heavily on partnershipswith major apparel brands, such asApple with Nike and HTC with UnderArmour.

Pure Players

There are two types of pure players inconnected devices for sports; wearablesmanufacturers and sensor providers.Whereas the former is aimed at thegeneral mass market, the latter tends totarget top athletes and professionals.

Internet Players

Faced with the ever increasing amountsof applications and connected devices,the Internet giants are aiming to createan ecosystem, which aggregates personalsporting data by providing platforms(such as GoogleFit, Apple HealthKit andWatchKit).

Source: IDATE

Main stakeholders’ positioning in the connected sports value chain

The connected sportsdevices market in 2021:

253M unit sales,37B EUR market

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The Internet of Things: reshaping the sport industry

Performance measurements - thequantified self

Connected devices aimed at monitoringrunning performances at the heart of theconnected devices trend in sports

Performance measurement is theprimary factor of connected devicesentering the world of sports. Inparticular, performance measurementfor running has taken center stage forconnected devices in sport.

The running market has beencontinuously growing for years. InFrance for example, the number ofregular runners has doubled from 6million in 2000 to 12 million in 2016.The volume of runners thus presents ahuge potential market, estimated at 1billion EUR in 2016 according to theFrench Federation of sport & leisureindustries.

This positive trend has beenaccompanied by the arrival of connecteddevices and mobile applications allowingrunners to follow and measure theirperformances. 65% of runners use asmartphone (versus 44% in 2014), with40% launch a dedicated application upontheir running session.

The table on the right summarises thefour major quantified self runningapplications. It is estimated that eachapplication has tens of millions of activeusers worldwide. It is worth noting thatall four of these applications are ownedby a leading brand specialising in thesport domain.

Main objectives ofconnected devicesin sport:performancemeasurement andincreased safety

Service offering and business model varybetween the applications

As can be seen from the table, serviceoffering varies: there are features totrack and monitor performances (sessionstatistics, guides, history), to motivatethe user (challenges, liveencouragement, stimulating music), topromote interaction with the community(publication on social networks,challenges) and to enhance the trainingsessions (music, stories).

Concerning interoperability with otherconnected objects (such as asmartwatches, bracelets, and heartratemonitors), most models are compatiblewith other wearable devices except forthe Nike application which only allowsinterconnection with the iWatch. Suchwearables allow the users to follow,manage and analyse their performancesin real time without having to take adevice out of its place (typically thesmartphone). This is one of the keyelements explaining the growth ofconnected devices within the sportsdomain.

2Comparison of key quantified self applications devoted to running

* Excluding other application of the Groups

Pricing strategies differ according to thebrand

What is particularly interesting are thedifferences in approach to the pricing ofservices. At one end of the scale is Nike,offering everything for free, whereas onthe other end of the scale one can findAdidas offering the bulk of its services asa premium offer (it should also be notedthat Nike offers the least amount ofservices). Asics and Under Armour basetheir model on a generally free offer,focusing on select paid services for themore experienced runners (personaltraining programs, weather andnutrition guides, VIP support and so on).

IDATE estimates Adidas’ Runtasticgenerates the most revenues, generatingapproximately EUR 220 million.

Estimated Frenchmarket for running:12M regular runners

1 Billion EURSource: La montre connectee

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Wilson’s connected basketball

The Internet of Things: reshaping the sport industry

A dedicated running mobile application -a must for all sport apparels

All traditional sports apparel makersnow have a dedicated mobile runningapplication that has either been createdin-house within the Group (such as Nikeand Puma), or though a strategicacquisition (Runtastic by Adidas,Runkeeper by Asics, and Endomondo byUnder Armour). The importance here isthat these applications provide access toa potential pool of customers that couldbe interested in purchasing their more“traditional” equipment, such as shoes,clothes and other branded goods. Toremain a cutting edge sports brand, it isincreasingly becoming a prerequisite tooffer connected devices; the risks ofmissing out on the increasing power ofdigital in sport being simply too great.

Even connected sportswear!

The sports market is increasinglyfocusing on specific technical devices,and some of the major brands such asNike and Garmin are now looking atconnected textiles. Sensors areintegrated directly into the clothing,allowing for more accurate data toimprove performance measurement. Atpresent the development of connectedtextiles primarily focuses on professionalathletes. However, in the medium tolong term this trend is also expected toenter in the consumer mass market, asits popularity increases and price pointsfall.

The connected ball - connecting sportsequipment

In the ball sports domain, Wilson hasintroduced the smart basketball. TheWilson X Basketball has multiple sensorsintegrated, allowing for variousmeasurements such as shootingaccuracy, shooting distance, mostsuccessful shooting zone, shootinghistory, and so on.

Involving the professional sportsmarket

Performance measurements play anintegral role in the world of professionalsports as can be observed on the case ofStats Sport, who provide around 140 oftheir clients with the solution ViperPod.

Various objects are inserted into thesportswear: four processors, a GPS, along range radio system, a cardio meter,an accelerometer, a gyroscope and adigital compass. These are thenconnected to a dedicated tool whichallows performance measurement in realtime: distance run, heartrate, speed,acceleration and deceleration, metaboliccharge, impact reporting, signs of tiring,stress levels, and so on.

Source: Exoskin

An example of connected sportswear

The large amounts of data gathered inthis way can be used to prepare athletesfor matches, to check recovery levels, tovary the training depending on physicalattributes, the strategic positioning of theplayers, and so on. It can also be used toassist in the easing back of players frominjury requiring specific training menus.

The Irish and English national teams are,for example, professional sports bodiesusing the ViperPod solution.

The data is transmitted via Bluetooth tothe users’ smartphones. A dedicatedapplication then allows the users toanalyse the statistics, and to share theirdata with friends. The application alsoproposes various challenges such as thebuzzer beater, time challenge and freethrows, providing an immersiveexperience to customers.

This connected basketball is available foraround EUR 180, and an AmericanFootball version is expected for Autumn2016.

One of Wilson’s main objectives forcreating a connected basketball is toremain competitive against the videogame industry, which by its nature is anindoor activity and thus goes against theprinciple of practicing sports outside.Wilson thus targets the general massmarket with its connected balls. At thesame time however, more sophisticatedversions of the connected balls areplanned for the longer term, to target theprofessional markets.

Source: Stats Sports

Source: Wilson

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Source: IDATE

The Internet of Things: reshaping the sport industry

The safety of athletes

The safety of the athletes has alwaysbeen, and always will be the priority forany sport. Connected devices areexpected to further develop in order tohelp keep athletes safe and secure.

Connected caps to measure head impacts

Reebok offers a connected cap forpractitioners of combat sports, Americanfootball and hockey. The connected capmeasures the impacts received on thehead, registering information on thenumber, force and position of theimpacts. The cap also incorporates areal-time LED alert system, where greensignifies no problem, orange provides awarning and red indicates danger to theuser. The cap not only measures themoment of impact, but also themovements which follow. Brain traumas,for example, are a result of headmovements following the impact ratherthen the impact itself. The cap isavailable for around EUR 129.49, aimedat the general public.

The spread of connected devices to new sport activites

Cycling helmet

Chinese maker Livall has developed aconnected cycling helmet. An LED deviceon the back of the helmet allows the userto be visible at night, and is alsoequipped with indicators to notify othermotorists when changing direction; adedicated device is attached to thehandlebar to control these lights.

In the case of a fall, the helmetautomatically sends a signal to apredetermined list. The helmet alsocontains a hands-free kit, equipped witha mic and speaker so that the rider cankeep his or hands on the handlebar. Thehelmet is expected to be available foraround EUR 180, or EUR 270 dependingon the support features included.

Sport categories SportsType ofmeasured data

Services Device/support object (brand)

AthleticRunning,jumping, throwing

Speed, length,distance,calories, heartfrequency,altitude, footcontact, footlanding, cadence,steps, hydration

Coaching, socialsharing, weather

Smartwatches (Apple, Garmin,Samsung…)

Wirstband (Fitbit, Jawbone,Runtastic)

Shirt (Hexoskin, Vert, Athos)Socks (Sensoria)Shoe (Tune)Sole (Rcup)

GymnasticsGymnastic,aerobic,dancesport, yoga

Intensity, stress,jump, amplitude,position, footpressure, speed

Coaching

Shirt (Vert)Mat (SmartMat)Bra (Sensoria)Wirstband (Moov)Shoe (E-Traces)Skipping rope (Sophia)

WatersportsSwimming,diving, waterpolo

Speed, length,distance, tempo,efficiency,position, watercontact

Coaching, safety

Watch (Garmin)Wirstband (Speedo,Decathlon, Withings)

Headphones (Swimbot)Headband (iSwimband)Glass (Instabeat)

Boating

Rowing,canoeing, sailing,water skiing ,surfing

Number of wavessurfed, speed,duration

Coaching, socialsharing, weather

Surf (Samsung)Smartwatch (Glassy Pro One,Rip Curl)

Racket or butts

Tennis, tabletennis, baseball,softbal , golf,badminton,squash, fieldhockey , icehockey

Power, swing,speed at impact,time to impact,attack angle,tempo, position,rotation, spin,heart frequency,shock, impacts,speed of stick,shot duration,weight transfer

3D analysis,vidéo analysis,social sharing

Racket, bat, club (Piq, Zepp,Sony)

Wirstband (Babolat, Smash)Helmet (Shockbox)Hockey stick (Fwd Powershot)Shoe (IOFIT)Field (Mojjo)Ralph Lauren (shirt)

Sports ball

Soccer, football,handball ,basketball,volleyball , beachvolleyball , rugby

Speed, length,precision, strikeforce, shotefficiency, zoneefficiency,rotation, spin,trajectory,intensity, stress,jump, amplitude,shock, impact

Coaching, gameplay, socialsharing, livestreaming

Ball (Wilson, Adidas, InsideCoach…)

Shirt (Vert, ViperPod, CityzenSciences, Zebra)

Capsule (BodyCap)Helmet (Shockbox)Basket (ShotTracker)Swatch (HoopTracker)Tooth protection (FITGuard)Cap (Reebok)

Cycling /skating

Cycling track,road cycling ,BMX

Tracking, speed,length, distance,calories, altitude,flashing lights,amplitude, airtime, hauteur,tricks, power

Coaching, 3Danalysis, vidéo,social sharing

Pedal (Connected Cycle)Bike (LeEco, Xiaomi,Vanhawks...)

Helmet (Livall, Volvo,Lifebeam…)

Shoe (Misfit)Handlebar (SmartHalo)Skate (Syrmo, Trace)Wirstband (Moov)

Basic measurement data such as speed,distance and calories burned can beapplied to a wide variety of sports. Tothis information, sport-specific data canbeing added, such as shooting accuracyfor basketball, swing data for golf, ortricks and moves for skateboarding toencourage the use of connected devicesin these sports.

This raw data can then be even furtherthen complemented by applications thatanalyse the data and offer services basedon the information received. Coachingservices, for example, inform the athleteof past and current performances, andsuggest ways for improvement thuskeeping the customer engaged with theservices provided.

Connected devicesare spreading intovarious sports

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The emergence of connected objects isspreading to all sports as can beobserved in the table below. Whilerunning remains the main sportingactivity incorporating connected devicestoday, the use of connected devices isdiversifying and spreading to a widevariety of sports.

Source: Reebok

About the Digital Transformation MonitorThe Digital Transformation Monitor aims to foster the knowledge base on the state of play and evolution of digital transformation inEurope. The site provides a monitoring mechanism to examine key trends in digital transformation. It offers a unique insight intostatistics 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 consortiumcomposed 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 theofficial opinions or statements of the European Commission. The Commission does not guarantee the accuracy of the data included inthis publication. Neither the Commission nor any person acting on the Commission’s behalf may be held responsible for the use whichmight be made of the information contained in this publication. © 2017 – European Union. All rights reserved.