HARDWARE TRENDS

Renee DiResta@noUpside

Hardware By The Numbers

Hardware Is Hard

Hardware was hard…

…because it was lonely

HackerspacesFrom Do It Yourself to Do It With Others

Hacking Hardware Everywhere

106Countries

represented

1531Worldwide

hackerspaces

534Hackerspaces

in the US

Hacking Hardware Everywhere

Maker Faires

Community Growth

Specialized Accelerators

The Support Ecosystem

Hardware was hard…

…because prototyping was difficult

3D Printers:units sold under $100,000

Enterprise-quality printers

will cost less than

$2000 by 2016

MakiBox

$200A6 LT kit

Printrbot

$349Simple kit

Buccaneer

$397on Kickstarter

End-User Spend on 3DP

Prototyping: Functional

Octopart Microcontroller Price Index

Economies of Scale

Hardware was hard…

…because China is far

Increased Access

OffshoringReshoring

Nearshoring

China PMI data

Mexico vs China Wages

BotsourcingIndustrial robots per 100k employees

Germany

South Korea

United States

Japan

Average

China

Typical industrial robot

$100kBase price

$200k+Programming cost

Base price

UR5

$34kUBR-I

$50kBaxter

$25k

Hardware was hard…

…because investors were scared

2011 Kickstarter

0.46%of all projects

were hardware

120Hardware projects

on Kickstarter

649Product Design

projects

26kTotal projectson Kickstarter

$2.5MHardware project

dollars raised

2.43%of money raisedon Kickstarter

2012 Kickstarter

0.58%of all projects

were hardware

239Hardware projects

on Kickstarter

1373Product Design

projects

41.4kTotal projectson Kickstarter

$9.7MHardware project

dollars raised

3.02%of money raisedon Kickstarter

2013 Kickstarter

1.7%of all projects

were hardware

784Hardware projects

on Kickstarter

2453Product Design

projects

46kTotal projectson Kickstarter

$46.6MHardware project

dollars raised

9.94%of money raisedon Kickstarter

Early-Stage Venture Capital

Hardware Companies Raise More

But follow-ons are tough…

Today, VCs<3 HW

$442MInto hardware

startups in 2012

$848MIn hardware

Investments in 2013

Hardware Companies Founded

Designed Products

Connected Devices / IoT

Wearables

Robotics

Hardware investment by sector

Acquisitions

….more acquisitions

Connected Devices

Or a toaster

Or a cow

M2M vs H2H Data Transfer Patterns

• Orders of magnitude more nodes• Upload-Biased Traffic• Low bandwidth• Low power• Real time

In 2008, the numberof devices connected

to the internet surpassed the number

of people on earth

Connect All The Things

20202012

50B8.7B

2013

10B …

2008

>

People are paying attentionGoogle Trends data for “Internet of Things”

People are paying $$

$25B

201820132012

$71B$33B …

Wearables

Projected Growth of Wearables

Hardware is still hard…

…but the future is bright

Software is eating the world…

Hardware gives it teeth