Wearables
The startups making every movement count
Last updated: 16 Mar 2023
Market 101
Wearables have made the leap in recent years from fancy accessories to essential gadgets. Purchases are motivated by consumers’ ever-increasing desire to track and analyse bodily functions and activities — we want to monitor our steps, our heart rate, our sleep cycles and more. The pandemic accelerated this trend and triggered a surge in demand for contactless communication and monitoring from healthcare providers, keen to track us remotely as a way of reducing risks and queues in their clinics.
Meanwhile, the enhanced connectivity of 5G is enabling savvy players to improve software speeds and the quality of data analysis, as well as break into less-obvious spaces like gaming and implantables. The next hurdle for device-makers: privacy. Startups can elbow their way ahead by integrating high-spec security solutions like blockchain technology into their firewalls.
Early stage market map
Key facts
$61.3bn
Size of global wearables market in 2022 — expected to rise 14.6% by 20301
49%
Wristwear’s share of the global market revenue2
82%
Percentage of consumers concerned about the privacy invasion of wearables3
Trends to watch
A new kind of skincare routine
Due to significant spikes in chronic illnesses, health professionals and patients are increasingly relying on wearables for real-time monitoring, reporting and alerts.
Smart patches are emerging as a convenient way to deliver drugs through the skin — particularly helpful for those with chronic conditions like diabetes, hypertension and cardiovascular diseases, who need to medicate on a regular basis.
Tech to unleash your inner Usain Bolt
Connected devices, which are becoming smaller and faster, are capable of monitoring all kinds of physical activities, whether it’s running, cycling, golfing, swimming or weightlifting. Athletic stars using tracking tech to give them that extra byte include Cristiano Ronaldo, Rory McIlroy and the England women’s football team.
AI and machine learning are now increasingly able to analyse an athlete's performance, customise their training to help them reach their goals and determine whether they’re overtraining — and risking injury. The NFL, for example, has integrated this tech into player body armour that tracks over 1,000 data points via GPS and LPS transmitters. Europe’s sport leagues are playing catch up.
A software update for the body
The global market for implantable monitoring devices is expected to grow to $31.5bn by 2025, largely driven by the rise of minimally invasive surgeries, the prevalence of chronic diseases and an ageing population.
Hearables, which can enhance audio experiences by combining features of traditional headphones with advanced sensors and processing capabilities, are rapidly gaining popularity.
Wearables are ready to level up games
Gaming companies looking to make games feel even more real are honing in on “haptic feedback” in wearables.
This enables players to physically feel simulations of in-game actions, from the impact of a virtual punch to the recoil, or kickback, of a virtual gun.
Growing security and privacy concerns
The growing number of internet-connected wearables presents a new cybersecurity risk, particularly for hospitals, which hold large databases of personally identifiable information.
It’s estimated that the value of personal health data is 20x higher than stolen credit card numbers on the black market. National laws, such as those supplementing GDPR, provide some protection for individuals, but the pace of regulatory development is lagging behind technological advancement.
Startups tracked by Sifted
Sifted take
Europe’s wearables market is showing no signs of slowing down, particularly when it comes to medical applications, while the integration of sensors and AI is breaking new ground. Products like smart watches and fitness trackers are already mature and profitable, but it remains to be seen whether consumers will embrace tracking every body metric, or go crazy for niche things like VR headsets and digital implants.
Rising stars
This European Innovation Council-backed startup has a headset equipped with sensory and feedback systems to help blind individuals navigate their surroundings.
Round
Grant
Valuation
Undisclosed
Date
2021
Size
€2,170,000
Backed by Hiro Capital and Techstars, the company has developed a wearable tracker to analyse sports performance.
Round
Seed
Valuation
Undisclosed
Date
2022
Size
€1,200,000
Designed an in-ear device to analyse brain wave, or electroencephalogram, data, alongside a platform for analysing it.
Round
Seed
Valuation
Undisclosed
Date
2021
Size
€2,000,000
Early stage startups to watch
.lumen
Hearing & vision impairments
€6m
€2.2m
-
HackMotion
Sports tracker & GPS
-
-
-
IDUN Technologies
Medical devices & trackers
€5m
€2m
-
Lymphatica Medtech
Medical devices & trackers
€4.8m
€1.3m
-
OLIVER
Sports tracker & GPS
€1.5m
€700k
-
PlayerData
Sports tracker & GPS
€5.2m
€1.2m
-
Prevayl
Data insights
€9m
€9m
-
Sumondo ApS
Relax & wellness
€800k
€200k
-
Europe’s success stories
Who early stage startups are up against
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
Finnish smart ring that keeps tabs on activity levels, sleep and general wellbeing. Became a unicorn in 2022, at a $2.55bn valuation, and surpassed 1m sales.
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
Ava’s fertility tracking bracelet helps women get pregnant faster. US company FemTec Health announced its acquisition of the Zurich-based medtech in July 2022.
Sources
Research reports
Global Wearable Technology Market Trends & Analysis Report 2021-2028 | January 2022 | BUSINESS WIRE
Europe Wearable Medical Devices Market - Growth, Trends, Covid 19 impact, and forecasts (2023-2028) | January 2022 | Mordor Intelligence
Wearable Technonology | February 2015 | Europa.eu
Garmin 2021 annual report | 2022 | Garmin Ltd
Wearable technology forecasts | 2021 | IDTechEx
News articles
Wearable and remote-monitoring devices are the next frontier for health tech. Here are 13 startups poised to take off, according to top VCs | October 2022 | Business Insider
Top 5 Wearables Trends 2022 – 2023 | November 2022 | Digital Salutem
Wearables and Privacy: What You Need to Know | June 2022 | Digital Salutem
Your feedback
How would you rate this briefing?