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Smart Mirrors Technologies and Markets, 2015-2022
Smart Mirrors Technologies and Markets, 2015-2022
Smart Mirrors Technologies and Markets, 2015-2022
Smart Mirrors Technologies and Markets, 2015-2022
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Smart Mirrors Technologies and Markets, 2015-2022
Smart Mirrors Technologies and Markets, 2015-2022
Smart Mirrors Technologies and Markets, 2015-2022
Smart Mirrors Technologies and Markets, 2015-2022
Smart Mirrors Technologies and Markets, 2015-2022
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Smart Mirrors Technologies and Markets, 2015-2022

  1. n-tech Research Report Smart Mirrors Technologies and Markets, 2015-2022 Issue date: April 2015 Code: Nano-823 n-tech Research PO Box 3840 Glen Allen, VA 23058 Phone: 804-938-0030 Email: info@ntechresearch.com
  2. Page | 1 Chapter One: Introduction 1.1 Background to this Report A "smart mirror" is a mirror with added features and functionalities, with the purpose of incorporating a capability that would otherwise be done manually or in some system other than the mirror. For example, a self-dimming mirror automatically adjusts to ambient light conditions, primarily for safety reasons but also for some measure of user comfort. Our definition of smart technologies as relevant to mirrors encompasses any kind of mirror that is made intelligent by adding such functionalities in one of two ways: (1) adding layer(s) of smart coatings, or (2) embedding electronics into the mirror Smart coated mirrors include the following functionalities, in any number of combinations: • Self-dimming: These coatings already has found an established market in automotive mirrors but not really anywhere else. Primarily this technology is electrochromic, although other types of self-dimming technologies are being explored mainly for markets outside of mirrors n-tech Research PO Box 3840 Glen Allen, VA 23058 Phone: 804-938-0030 Email: info@ntechresearch.com Web: www.ntechresearch.com
  3. Page | 2 • Self-cleaning: These are hydrophobic and hydrophilic coatings, which use water (either rinse or rain) to repel or otherwise channel away dirt, dust, inorganic material, etc. from the mirror surface • Self-healing: Several potential systems could apply here, from viscoelastic reflow and microencapsulants to more advanced vascular-based systems. There are challenges in such coatings regarding their complexity of design and implementation, balancing seemingly contradictory properties: strong enough to encapsulate but fragile enough to break, fast-dispersing but also fast-polymerizing Electronics that can be embedded into mirrors include sensors, displays, cameras, and touch technology, with intelligence enabled through software, algorithms and processing. 1.1.3 Making Mirrors Smart: First Coatings, Now Electronics Two years have passed since n-tech Research's last report on "smart mirror" products and the technologies behind them, and we seem to be on track with most of what we had predicted: • Embedded electronics is critical to more widespread adoption across various end markets (consumer/home, retail, healthcare), and primarily as an information-delivery mechanism. The flip side of this: smart mirrors as defined by responsive coatings (self-dimming, self-cleaning, self-repairing) is less strongly driving future adoption, largely because their mainstay (self- dimming mirrors for automotive) has been a long mature market, with seemingly less velocity for innovation. • Multiple functionality within a smart mirror has become more in demand, from self-dimming mirrors made with additional self-cleaning or repair capabilities, to such mirrors adding electronics capabilities (lights, displays, etc.), or even mirrors entirely based on additional electronics functionality. Self-dimming has long been embraced in vehicle mirrors, although other types of smart capabilities such as self-cleaning and self-healing have yet to really prove their worth. What has become even more true today is that imbuing the humble mirror with additional smart functionalities is increasingly a conversation about what types of electronics can be embedded within it, often in concert: cameras, displays, touch and gesture recognition, lights, various types of sensors, and some level of processing and algorithms behind the scenes to stitch everything together. n-tech Research PO Box 3840 Glen Allen, VA 23058 Phone: 804-938-0030 Email: info@ntechresearch.com Web: www.ntechresearch.com
  4. Page | 3 Exhibit E-1 outlines the basic market drivers for "smart mirrors," divided into four general categories: safety, comfort/convenience, design/style, and advertising/marketing. Source: n-tech Research Safety Comfort and Convenience Design/Style Advertising and Marketing Self-cleaning Cleaner exterior mirrors in automotive applications lead to safer driving. Could enhance safety in some medical settings if they reduce the spread of disease through reduced “touching” of mirrors. Clear exterior views enhance the driving experience. In humid environments (e.g., home bathrooms) could reduce the need for frequent cleanup. Self-healing Could marginally improve safety in most applications; greatest advantage is in automotive smart mirrors, and potentially outdoor/public spaces Unclear how self- repairing capability substantially improves comfort or convenience. Embedded electronic devices Heads-up display of critical and/or useful information in automotive applications keeps attention on the road. Rear- and forward-driving assistance improves road safety. Embedded electronics can also improve patient compliance through delivery of instructions, reminders, etc. Heads-up display comfort in driver’s eye line. Convenience of information delivery in bedroom, bathroom, and household mirrors. Multifunctional rear-view mirrors contribute to overall vehicle design. Similarly, electronically- enabled mirrors can be a luxury item in a home or business; TVs that double as mirrors enhance interior design. Ability to place dynamic and customized advertising content through the use of electronic displays in non- automotive applications is a key driver for growth. Exhibit E-1: Drivers for Growth of Smart Mirrors Smart Technology Drivers Self- dimming Reduces glare and improves driver response time in automotive applications, thereby improving both safety and comfort/convenience. Unclear how safety or comfort is significantly enhanced in self-dimming smart mirrors in non- automotive applications. Desirable add-on for automobiles, which are often differentiated by non- standard options, and self- dimming could enhance design in consumer or household applications. Unclear how self-dimming, self-cleaning or self- repairing significantly enhances advertising content or marketing efforts. (Self-dimming feature may add to ability to attract potential customer and improve recall; self-repair and self- cleaning may marginally improve cost-effectiveness of ad placement.) Self-cleaning and self- repairing capability could be considered a “cool” or luxury addition to any application and thus might be considered a style feature, even if is primarily introduced for its functionality. n-tech Research PO Box 3840 Glen Allen, VA 23058 Phone: 804-938-0030 Email: info@ntechresearch.com Web: www.ntechresearch.com
  5. Page | 4 1.1.2 Growth in End Markets: Testing Time For end markets, smart mirrors are pushing further into the spotlight. Automotive is arguably the only commercial success story for smart mirrors with commonplace use of self-dimming mirrors. Increasingly, the core safety function of a reflective mirror (both internal and external) is being forced to accommodate higher-tech capabilities such as cameras and displays, which is changing the game for suppliers. Gentex, which supplies the vast majority of self-dimming automotive mirrors, does see some volume growth opportunities for that type of product, which is to say simply getting them into more vehicles than before (currently about 25% of all models for interior mirrors and ~7% for external side mirrors). But very clearly the future for smart mirrors seems to be less about such responsive coatings, and more about electronics-enabled capabilities: sensing, vision/cameras, displays, touch, aggregating and presenting various information in real-time to the user. We also are seeing a recent wave of activity in smart mirrors in retail and consumer environments, with some very large brand names now implementing pilot programs. Alongside them are some equally major technology giants—including one that's attempting to mesh the worlds of e-commerce and retail. 1.1.3 What's Next for Smart Mirrors: Time to Redefine? Perhaps the most important trend we're seeing in smart mirrors is in how the concept of a smart mirror is being brought to market, where the aforementioned combinations of interconnected and networked electronics are in the spotlight, arguably more than the mirror itself. The latest iterations of smart mirrors suggest that future smart mirrors in many applications might be true mirrors in name only—just another iteration of computers and displays, with new scale and capabilities. In fact, the future of many applications might be evolving where such a mirror is rather an exercise in semantics. This distinction is illustrated by one vendor's use of the term digital mirror as a differentiation to what it's doing, both displays with cameras as well as double-sided mirror with a display. This suggests the future of smart mirrors might actually be souped-up large computer displays, perhaps with an added reflective surface, in both ways delivering the function of a mirror, which is to say presenting the user a view of his/her surrounding environment. That mirroring function simply becomes one feature among the typical computing-enabled bells and whistles. Indeed, one accepted definition of a "smart mirror" is simply a mirrored TV screen. n-tech Research PO Box 3840 Glen Allen, VA 23058 Phone: 804-938-0030 Email: info@ntechresearch.com Web: www.ntechresearch.com
  6. Page | 5 This would suggest opportunities rest more with major electronics companies, rather than glass suppliers. And indeed, seeing names like Intel, Panasonic, Sony, Toshiba, LG, etc. coming out with prototypes of smart mirrors, and/or supporting smart mirror products from others, reinforces this thinking that the future for smart mirrors in many applications may be fulfilled by large interactive computer displays. 1.1.4 Evolving Market, Evolving Landscape And yet this space still bears close watching. In automotive, it is unclear how things will shake out: will rearview mirrors with embedded displays, and/or bimodal operation, be the preferred "smart mirror" product, largely benefiting Gentex? Or will in-console displays assume this function? And what is the real takeoff for other "smart" mirror adoption, such as self-dimming, turn signals, and other features into external mirrors? In the other area where smart mirror activity seems to be heating up, retail shopping is undeniably taking a step forward with digital initiatives, ever seeking ways to not only improve the shopping experience, but also to absorb more actionable information about shoppers and ultimately convert them to paying customers. At some point, there is a line between willing participation in an immersive shopping experience, and crossing over into invasive information gathering. And while we are encouraged by the level of big-name brand participation in these new smart mirror roll-outs—electronics heavyweights from Intel to Panasonic, and retail brands from Nordstrom to Bloomingdale's and, reportedly, even Wal-Mart—we must also acknowledge that pilot programs are by definition an experimentation, and not a promise of future expansion. We note that one company we profiled in our 2013 report, Mirrus, received attention for its deployment of 150 smart mirrors in O'Hare airport bathrooms, as well as a number of collegiate and professional sports stadiums—but they appear to have disappeared just two years later. In summary, n-tech Research believes we are entering a critical period for smart mirrors, over the next year or two. We are now witnessing the emergence of several high-profile retail applications, which may—or, equally importantly, may not—spur a lot more activity in this sector. We are also at a crossroads in the automotive market for what the future of "smart" mirrors will be, as suppliers adjust their products and pipelines to accommodate more cameras and other sensor-enabled functions. At the head of this spear, there is likely to be some divergence as to what a "smart mirror" even is, and which companies will stand ready to deliver what individual markets require. n-tech Research PO Box 3840 Glen Allen, VA 23058 Phone: 804-938-0030 Email: info@ntechresearch.com Web: www.ntechresearch.com
  7. Page | 6 1.2 Objective and Scope of this Report In this report n-tech Research updates our evaluation of the various types of technologies that companies are using to make mirrors "smart," while noting how different sectors may have different value propositions. We also explore the different market drivers for "smart mirrors" in what we define as the four key end-market sectors: automotive, home/consumer, retail/commercial, and medical/healthcare. We provide eight-year forecasts for the various "smart" technologies in each sector, both in volumes and in value terms. This report, and the forecasts included, are intended to be international in scope, and we have not been geographically selective in the firms covered herein or interviewed to collect information. Where markets and opportunities are oriented to any particular region, we note this. 1.3 Methodology of this Report The information and opinions here are mainly derived from primary sources, including our ongoing program of interviews with business development managers and technologists in various related areas: glass, displays, sensors, etc. We also have relied upon our previous reports on smart mirrors and related offerings, from automotive glass and architectural glass to smart coatings and surfaces, and transparent displays. Where information has been used in an earlier report it has been reinvestigated, reanalyzed, and reconsidered in light of current developments and updated accordingly. We also have relied upon our own extensive research of secondary sources including: technical literature, relevant company web sites, trade journals, government resources, and various collateral items from trade shows and conferences. 1.3.1 Forecasting Methodology n-tech Research has covered smart glass across various sectors for more than seven years, through which we have acquired a deep understanding of the dynamics of the various markets and technologies. Our basic approach to forecasting is to identify and quantify underlying addressable markets and assess the likely penetration rates of various smart mirror technologies. It is important to explain that in our forecasts we do not arrive at volume totals. This is because there is no one standard "smart mirror" product; in fact, a smart mirror in any of the markets we discuss can, and usually will, incorporate multiple technologies to deliver multiple functions. n-tech Research PO Box 3840 Glen Allen, VA 23058 Phone: 804-938-0030 Email: info@ntechresearch.com Web: www.ntechresearch.com
  8. Page | 7 For example, an automotive smart mirror likely starts with familiar self-dimming capability and embedded sensor, but newer versions likely will incorporate a display of some kind, either in a portion of the mirror or entirely spanning the whole thing. Sensors in retail environments may include a vast array of embedded electronics— display, cameras, touch and/or gesture interface, sensors, RFID, wireless networking. In fact, this setup likely changes even in the same smart mirror deployment—a product out on the show floor will have cameras, but the smart mirror in the fitting room won't, for example. The upshot of that is that different components carry different price points, and various combinations of them will not only result in quite different system costs, but also adding them all up would dramatically inflate the actual market size. 1.3.2 Economic Assumptions Given the usage cases we analyze for smart mirrors, we conclude that nearly all of them, in the end, are more or less dependent upon consumer spending trends, and thus macroeconomic trends would come into play. By common consent the automotive industry is especially vulnerable to fluctuations of the economy. In a weak economy, luxury vehicles are especially vulnerable, which is precisely where most of the smart mirrors have found inroads, although in recent years they have proliferated into more mainstream cars. However, it is important to recognize that no matter what the world economy looks like, the automotive industry will remain very competitive and the car makers always will seek new technologies that can attract buyers based on the critical factors of cost, safety, comfort and style. Another macroeconomic trend worth noting is falling oil prices, which directly impacts gasoline prices, and could positively impact car sales. For retail applications, which is where we already had predicted the most growth, macroeconomic trends greatly impact consumer spending. At the same time, retail companies are especially keen to explore anything that helps them convert more shoppers, and research suggests a more digital-friendly experience greatly improves that likelihood. Household use of smart mirrors (bathroom, kitchen, etc.), especially those incorporating electronics, are rather a more luxury consumer item. Even in retail shopping where we are seeing some newer pilot implementations at large brands, these are generally higher-end stores (Neiman Marcus, Nordstrom, Rebecca Minkoff), at least for now. n-tech Research PO Box 3840 Glen Allen, VA 23058 Phone: 804-938-0030 Email: info@ntechresearch.com Web: www.ntechresearch.com
  9. Page | 8 The one sector that might be less affected by consumer purchasing trends would be healthcare and medical applications. Generally speaking, applications in these fields tend to be more lenient with pricing, but also more demanding in terms of performance and reliability—human well-being and lives may literally depend upon accuracy and reliability of information delivery. This might be less dramatically relevant for a smart mirror, but it's a factor nonetheless. The forecasts in this report are not based specifically on economic growth projections, but we implicitly assume modest growth throughout all the regions under consideration. Of course "modest" means different things to different regions: in the U.S. for example this is of 2% GDP growth, whereas China is continuing to manipulate their number to around 7%, and Europe is lucky to be north of 1%. The IMF's latest World Economic Outlook projects global economic growth in 2015 at 3.5% and 3.7% in 2016, which are slight downward revisions from its October outlooks, reflecting changes largely in Asia and large oil exporting countries. 1.4 Plan of this Report In Chapter Two we examine all of the different technologies that can make a mirror "smart," from functional coatings to embedded electronics, and in various combinations. In Chapters Three through Six, we review the various markets in which smart mirrors are finding adoption, or are likely to emerge within the scope of our eight-year forecasting outlook. These include the evolution of smart mirrors in automotive, retail and advertising, home/consumer use, and medical/healthcare applications. It should be noted that some of these usage cases overlap; a smart bathroom mirror, for example, could also sense and process health information about the user, with actions ranging from simply displaying relevant information to facilitating user action, even notifying a doctor. n-tech Research PO Box 3840 Glen Allen, VA 23058 Phone: 804-938-0030 Email: info@ntechresearch.com Web: www.ntechresearch.com
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