Task 1: Enhanced understanding of target markets and key customers
More than 700 people visited our booth at Photonics West 2016 exhibition for lasers and laser systems (16-18 Feb, San Francisco, USA). We met with a large pool of potential customers most of which represented consumer electronics markets (virtual/augmented reality (VR/AR) eyewear or in other words laser/smart glasses). We also got new contacts to manufacturers of advanced bioanalytical, industrial and scientific instruments and imaging tools. After the exhibition, customer interaction (meetings, e-mails, phone calls) has been the most active with VR/AR manufactures. Collaboration with bioanalytical partners are also active but we have learned that their product development cycles are longer than in VR/AR. We have a good understanding on customers’ laser requirements and component purchasing processes. For example, VR/AR customers want laser projectors which are low power, low cost, eye-safe, suitable for mass-production and produce excellent image quality. We categorized key customers based on their application and our product/solution. More than 100 companies have been identified 90% of which locate in Japan and USA.
We made literature searches and studies on biomedical-imaging and other imaging markets. Our key findings are
1. Global endoscopy instrument market is expected to grow from $23.3billion in 2010 to $33.7 billion in 2016
2. Global market for VR/AR reached €7.3 billion in 2015 showing a significant growth compared to €4 billion in 2014. Digital-Capital forecasts Global market for VR/AR revenues to hit €105 billion by 2020 with AR taking the largest share of the market and counting for €79 billion. The VR/AR hardware market is estimated to be roughly 40b€ in 2020 which is our main target market.
Task 2: In-depth competitor analysis
For endoscopy applications we analyzed competitors’ most up-to-date light source products / technologies, compared them to our offering and made a list of competitive advantages. We found our products are superior in many ways like
- We can make any visible wavelength 400…700nm (competitors have only few specific wavelengths available)
- We can offer simple low-cost laser design
- Our laser products are >70% smaller than competing solutions
- We made a competitor analysis which included a freedom-to-operate survey among 800 patents, patent applications and publications that confirmed we have the full rights to commercially exploit our technology in all key markets.
For VR/AR applications, we analyzed competing technologies, products, patents and publications. Our laser technology enables fabrication of ultra-compact laser projectors. Such laser projectors are based on our novel ultra-compact RGB laser source and MEMS scanning mirror (multiple suppliers). Brighterwave will design and sell laser projectors. Our laser projectors can be >90% smaller, consume >70% less electrical power, offer outstanding image quality and have a form-factor small enough to enable consumer-friendly VR/AR eyewear vs. competing solutions.
Task 3: Development of application-specific laser light source
Due a long product development cycle in biomedical industry and a very strong traction from potential VR/AR customers, we decided to first convert customers’ application-specific requirements to laser product specifications for VR/AR. We first simulated the key components (laser diode and nonlinear crystal) and then purchased them from our suppliers. We characterized the components using the laboratories of Optoelectronics Research Centre in Tampere, Finland. We designed and built a laser projector demonstrator which projects a virtual image directly to the human eye – this is the revolutionary technology platform for the next generation VR/AR eyewear. We made datasheets and handling instructions for laser projector including marketing materials. The same RGB light source inside the projector can be used for retinal imaging to detect early symptoms of diabetes.
Task 4: Product sampling and production ramp-up planning
We have sold the first system to a large consumer electronics company and expect to receive more orders from new customers by Autumn 2016. In addition, we verified the supply chain and sales channels for our laser light source and laser projector products.
