A new national survey released today on wearables revealed that actionable, accurate health insights from wearables will be increasingly important to the success of the industry and 63% of respondents have owned a wearable device at some point, up from 42% in 2016. The online survey polled 826 consumers from a wide range of U.S. regions, ages, and income levels on their experiences and preferences around wearables. The 2018 survey is a follow-up from the same survey conducted by Valencell in 2016.

1. The State of Wearables Today
Consumer Survey Results
© 2018 Valencell, Inc
November 2018

2. © 2018 Valencell, Inc
Contents
• Survey Overview
• Survey Demographics
• Executive Summary
• Detailed Findings

3. © 2018 Valencell, Inc
Survey overview
• The 2018 “The State of Wearables Today” Survey was conducted by
Valencell from 10/1/2018-11/21/2018. The online survey polled 826 U.S
consumers, ages 18 and over, on their knowledge and preferences around
wearable technology devices.

4. © 2018 Valencell, Inc
Survey demographics
• 826 respondents/completed surveys
• 512 male
• 314 female
• Respondents between ages 18 and over
• 18 – 29: 16%
• 30 – 49: 39%
• 50 – 65: 30%
• 65 and up: 15%
• Range of U.S. regions; range of income levels

5. Executive
Summary

6. © 2018 Valencell, Inc6
Consumers Believe in Wearables Positive Impact
on Their Health (and they want more!)
• More than two-thirds of consumers who own wearables (67%) believe the device has had a positive
impact on their health.
• Heart rate tracking and step counting were considered the most useful wearable functionality, but there
is a clear desire for further health and medical monitoring. When wearable owners were asked what condition
they would like monitor in addition to what they are doing now:
• 55% would like to monitor blood pressure, up from 46% in 2016
• 50% would like to monitor stress, down from 55% in 2016
• 49% would like to monitor heart health
• 33% would like to monitor blood sugar levels
• Among survey respondents who have never owned a wearable device, 69% would consider using a
wearable if it provided significant information on their health, such as blood pressure, stress, and heart health.

7. © 2018 Valencell, Inc
• 93% of survey respondents ranked device accuracy as important or very
important, followed by comfort (90%) and ease of use (83%). This
prioritization from consumers is consistent with the 2016 survey findings.
• 76% of survey respondents say they trust the accuracy of the data their
wearable provides.
• Among survey respondents who have never owned a wearable device, 55%
said they would consider using one if they trusted the accuracy of the
device
Accuracy Remains Top Consumer Priority
7

8. © 2018 Valencell, Inc
Significant Increase in Wearable Ownership, Shift
Toward More Functional Devices
• Over 60% of respondents own or have owned a wearable device.
Smartwatches increased in popularity, 53% ownership in 2018 compared
to 32% in 2016, while wristbands declined, dropping from 52% ownership in
2016 to 45% ownership in 2018.
• Of those who have not owned a wearable device, 60% indicated that if they
were to buy a new wearable, they would select a smartwatch. Accuracy,
battery life and comfort topped list of desired features for those who have
never owned a wearable device.
8

9. © 2018 Valencell, Inc
Consumers are Using Wearables Longer and
Getting More Value
• 72% of wearables users have owned and used their device for a year or more
• When asked what they like most about their wearable device:
• 59% like getting data and checking their progress
• 25% like that their wearable has improved their performance
• 26% like the data’s accuracy
• 26% like that their wearable helps them stay in shape
• 15% like the improvements in their sleep and stress
9

10. © 2018 Valencell, Inc
Consumers are Using Wearables Longer and
Getting More Value (continued)
• Only 32% of wearable owners surveyed have discontinued use of their device
compared to a 37% abandonment rate in 2016.
• When users were asked why they discontinued the use of their wearable devices:
• 28% said It was too much of a hassle to continually recharge
• 25% said it was uncomfortable to wear
• 20% said It was not accurate enough (didn't trust the readings)
• 12% said it did not impact their health
10

11. Survey Findings
All Respondents

12. © 2018 Valencell, Inc12
Do you currently, or have you ever, owned a wearable
technology device?
Wearable ownership has
increased from around 50% in
2016, to 64% in 2018
Wearable device defined as: a device, clothing and/or
accessories incorporating computer and advanced
electronic technologies.
12

13. Survey Findings
Consumers who own a wearable

14. © 2018 Valencell, Inc
What kind of wearable device do you own?
Smart watches, wristbands and earbuds are most common
14
d

15. © 2018 Valencell, Inc
What functionality does your wearable include?
Step counting, heart rate
monitor, sleep tracking and
calorie counting are
common functions for
wearables
15

16. © 2018 Valencell, Inc
If you had to choose one, what is the most useful
functionality of your wearable device?
Step counting, heart rate
monitor, and notifications
are most useful wearable
functions among owners
16

17. © 2018 Valencell, Inc
Why did you originally purchase the wearable?
• Tracking overall activity, monitoring heart
rate and monitoring general health most
popular reasons consumers purchased
wearables
• 24% received the wearable as a gift
17

18. © 2018 Valencell, Inc
What type of condition would you like to monitor
beyond what you are doing now?
Consumers would like to
monitor advanced
biometrics including blood
pressure, heart health and
blood sugar levels
18

19. © 2018 Valencell, Inc
How long have you owned your wearable device?
Most consumers (74%)
have owned their wearable
for one year or longer
19

20. © 2018 Valencell, Inc
How often do you wear/use your wearable?
• More than half of respondents use
their wearable every day
• 3% only use their wearable when
training for a specific race/event
20

21. © 2018 Valencell, Inc
Since purchasing your wearable, have you
discontinued using it?
Less than 33% of
wearables owners have
discontinued using their
wearable
21

22. © 2018 Valencell, Inc
If yes, why did you discontinue the use of your
wearable?
Recharging hassles, lack of
comfort, and lack of
accuracy were top reasons
that wearable owners
discontinued use
22

23. © 2018 Valencell, Inc
How long after purchasing your wearable did you
stop using it?
Nearly a third of wearable
owners used their device
for over a year before
abandoning
23

24. © 2018 Valencell, Inc
What do you most like about your wearable?
Getting the data and checking on
progress was the most popular
of all features; 25% feel it has
helped improve performance
24

25. © 2018 Valencell, Inc
Please rate the following in regards to wearable
devices; 1 = not important and 5 = very important
Accuracy, comfort,
and length of battery
charge are key
priorities among
wearable owners
25

26. © 2018 Valencell, Inc
Do you trust the accuracy of the data your
wearable provides – i.e. heart rate data?
76% of wearable users
trust the heart rate
data from their devices
26

27. © 2018 Valencell, Inc
Do you feel that your wearable device has an
overall positive impact on your health?
Nearly 70% of
wearable users feel
that their wearable has
positively impacted
their health
27

28. © 2018 Valencell, Inc
Which of these potential wearable device
capabilities would you find most valuable?
28
Consumers have a strong interest in
personal health and medical insights
like monitoring atrial fibrillation,
managing pain and identifying cardiac
abnormalities.

29. © 2018 Valencell, Inc
Do you feel that accuracy in wearable technology
will one day be able to directly affect your health?
Nearly all wearable owners
feel that wearable accuracy
will one day impact health
29

30. © 2018 Valencell, Inc
Have you ever visited a doctor based on the data
you’ve received from your wearable device?
While most wearable owners have not
visited a doctor due to data from their
wearable…
…for those who have, the doctor
agreed that they should have come in
30

31. © 2018 Valencell, Inc
If wearables were so accurate that they could help manage
your health by only wearing them one hour a day, at your
convenience, how likely would you be to use one?
Most consumers want a
wearable they can wear
for short periods of time
while still managing their
health
31

32. © 2018 Valencell, Inc
If you were to buy a new wearable, what type would you
consider purchasing?
Smartwatches continue
gaining popularity which
indicates a shift towards
more functional devices
32

33. © 2018 Valencell, Inc
Would you prefer a wearable you could wear:
33
Consumers would prefer
to wear their devices 24/7
which creates a need for
longer battery life.

34. Survey Findings
Consumers who do not own a wearable

35. © 2018 Valencell, Inc
If you do not own a wearable, why is that?
Lack of clear benefit is the
primary barrier to wearable
ownership, and while cost
remains an issue, some
consumers are simply not
interested in monitoring
their health day-to-day
35

36. © 2018 Valencell, Inc
Is there any type of wearable that you might
consider buying?
Half of all respondents
who do not own
wearables would
consider buying one
36

37. © 2018 Valencell, Inc
If yes, are you considering buying a wearable in
the next:
Over 60% of those
considering a
wearable purchase
intend to purchase
within the next year
37

38. © 2018 Valencell, Inc
If yes, what type of wearable would you consider
purchasing?
Most of those considering
a wearable purchase
would purchase a smart
watch or wristband.
38

39. © 2018 Valencell, Inc
What functionality is missing from the wearables
on the market today that would get you to buy a
wearable if it was available?
• Blood pressure
• Accuracy
• Good battery life
• Useful health metrics
• Security features
• Affordability
• Medical recommendations
• Comfort
• GPS
• Syncing with other devices
• Stress monitor
• Ease of use
• Responses included:
39

40. © 2018 Valencell, Inc
Do any of your friends or family members own
wearables?
More than half of non-
owners have friends or
family who own a wearable
40

41. © 2018 Valencell, Inc
If yes, are they satisfied with them?
Most of known friends and family wearable owners are satisfied
41

42. © 2018 Valencell, Inc
If you trusted the accuracy of a wearable, would
you consider using one?
More than half of those
considering purchasing a
wearable believe accuracy
to be important
42

43. © 2018 Valencell, Inc
If you were to buy a wearable, please rate the
importance of the following criteria; 1= not
important and 5 = very important:
Accuracy, comfort and
ease of use are top
priorities for non-owners
43

44. © 2018 Valencell, Inc
If wearables provided significant information on
your health, including things like blood pressure,
stress, and heart health, would you consider using
one?
Almost 70% of non-owners
would consider purchasing
a wearable that provided
advanced health and
medical insights
44

45. © 2018 Valencell, Inc
If accuracy in wearables was able to help you
better manage your health, how likely would you
be to use one regularly?
76% would purchase if wearables could help better manage health
45

46. © 2018 Valencell, Inc
If wearables were so accurate that they could help
manage your health by only wearing them one
hour a day, at your convenience, how likely would
you be to use one?
Non-owners would consider
using a wearable if they
only had to wear it for one
hour per day
46

47. © 2018 Valencell, Inc
About Valencell
Valencell produces the most accurate wearable biometric sensor systems in the world and provides this patent-
protected technology to consumer electronics manufacturers, mobile device and accessory makers, medical
device makers, sports and fitness brands and gaming companies for integration into their products. Protected by
more than 70 granted patents and more than 100 patents pending, Valencell’s technology can be used in
wearables and hearables for virtually anyone, anywhere, doing anything. Their technology is scalable to multiple
form-factors such as earbuds, smartwatches, armbands and wrist devices and is currently integrated into more
biometric wearable devices than any other technology provider in the world.
47

48. Thank you!