Wearable Medical Devices

October 06, 2024

The other day, I noticed a friend of mine had on a big ring. I thought he was making a fashion statement, but he said it was an Oura ring – a wearable health tracker. It measures things like quality of sleep, fitness, stress, and like the newest generation of health apps, gives you personalized guidance on how to improve your health (for a subscription fee of course). But more than the device's capabilities, what I found to be the most interesting was how fitness trackers have evolved since the revolutionary launch of FitBit in 2009, the first mass market fitness tracker which mostly counted steps and tracked sleep, to ubiquitous Smart Watches like the Apple Watch, Galaxy Watch and the Huawei Watch that can now even monitor blood oxygen levels and act as an ECG (electrocardiogram). As health becomes a top priority for older adults and even Gen Z, wearable health devices are only expected to grow (see chart below). Note, the chart includes Diagnostic devices (like the trackers mentioned previously), as well as Therapeutic devices (like insulin pumps).

Some benefits of Wearable Medical Devices include:

• Improved Health Awareness: Real-Time monitoring allows users to stay informed about their health status and can provide early detection of potential health issues

• Encourages Fitness: Personalized fitness tracking lets users set personal goals, track progress and stay motivated, sometimes with reminders to encourage specific behaviors.

• Sleep and Stress Management: Sensors can monitor quality of sleep and can identify periods of stress and can offer guidance on improving both, key to a healthy lifestyle.

• Chronic Disease Management: Those with chronic conditions can help keep their conditions in check and data can be shared with healthcare providers for better management. Some devices can even allow for remote patient monitoring resulting in fewer doctor's office visits.

• AI-Driven Insights and Personalization: Many wearables use AI to analyze huge amounts of user data, providing tailored health insights, predictions, and recommendations

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Personally, I’ve never been a fan of wearing “jewelry,” and that includes even my wedding band (much to my wife's dismay). So, despite the sleek and stylish evolution of today’s fitness trackers, they’re still not for me. However, if the technology continues to get smaller and less intrusive-like being embedded in a sneaker insole-I might just reconsider.

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From an investment perspective, though, the key takeaway isn’t the devices themselves (which are often privately owned or part of large tech conglomerates). The real opportunity lies in the broader trend of increased health awareness and the tech innovations that make it possible. This shift in consumer behavior touches on sectors Somar has long been tracking, including healthcare data analytics, improved access, hyper-personalization, and the development of the tiny computer chips that power these cutting-edge devices.