Large addressable market
The global helmet market encompasses a large number of helmet categories that are under constant development. Although the market for helmets is very large, no aggregate global data are available. MIPS has therefore chosen to describe the part of the market for which concrete data are available and where the company also sees an opportunity for integration of MIPS BPS.
MIPS estimates that its total market today is 410 million helmets annually. Based on this estimate, the company has chosen to organize its operations according to three different categories:
- Sports helmets
- Moto helmets
- Safety helmets
The market for different types of Sports helmets is estimated at 50 million helmets sold annually. Bike helmets account for the largest proportion of these helmets, but the category also includes helmets for snow sports, equestrian helmets and helmets for various team sports.
The market size for the Moto category, like the one for Sports helmets, is estimated at 50 million helmets annually. MIPS has chosen to divide the Moto category into two subcategories: I) road moto helmets and II) motocross helmets. Some of the helmets in this category are also used in other areas such as snowmobiling, automobiles and other activities involving travel at high speeds.
The largest category of these three categories is Safety helmets, estimated at 310 million helmets annually, including 300 million helmets for industrial use and 10 million in Law Enforcement and Armed Forces (LEAF). MIPS aims to be able to offer its solution to as many helmet users as possible all over the world. However, applications are limited in some respects by the following factors:
- MIPS works based on the principle that it must be scientifically proven that the company’s technology actually improves the safety of the helmet in which MIPS BPS is implemented.
- There are certain technical limitations that make it difficult to include MIPS BPS in certain types of helmets.
- There is a price floor for helmets in which MIPS BPS is offered, which is currently USD 30.
Historically, MIPS BPS is mainly implemented in helmets at higher price points. As demand has increased and the company has developed new solutions that make it possible to offer products at lower price points as well, the addressable market has grown.
Although MIPS is the market leader in solutions for handling rotational motion solutions to protect the brain, to date the company has only penetrated a small portion of the total market.
Historically, MIPS BPS is mainly implemented in helmets at higher price points, but today the company offers products that can be implemented in helmets at price points as low as USD 30. Previously, replacement cycles for helmet users in Sports Helmets have been estimated at an average of five to eight years. Although no newer data is available regarding how often helmets actually are replaced, MIPS estimates that the replacement cycles have been shortened more and more. Below is a summary of the main subcategories of the Sports helmets category.
Bicycle helmets are the single largest subcategory of Sports helmets, with an estimated annual volume of 35 million helmets. MIPS believes that the greatest limitation in this subcategory is the price level, since MIPS BPS is currently only implemented in helmets that cost more than USD 30 on the market. This portion of the bike helmet market is estimated at 20 million helmets annually.
The bike helmet market is divided primarily into helmets for daily use and commuting, helmets for road biking, helmets for mountain biking and children’s helmets, where helmets for daily use represent the largest portion. Helmets for electric bikes is a rapidly growing subcategory, though it still represents only a small portion of the total bike helmet market.
Bike helmets currently comprise MIPS’ largest sales area by far and this subcategory is the source of the majority of MIPS’ revenues. Awareness of MIPS technology in this market is relatively high, with the greatest awareness in the US market, followed by the European market. In the rest of the world, awareness of MIPS’ technology is still relatively low. MIPS has delivered bike helmet solutions since 2010.
The Snow helmets category is one of the larger subcategories in the Sports helmets category. Snow helmets are used for both skiing and snowboarding. The helmets are usually divided into helmets for recreational use (children/family/novice and intermediate levels) and helmets for advanced use (alpine and freestyle). Awareness of MIPS technology is high in this subcategory and deviations from this are often geographic in nature. MIPS has delivered snow helmet solution since 2010.
Equestrian helmets are divided into helmets for equestrian sports and for polo. Interest in MIPS technology from this category has historically been low but has substantially increased in recent years. However, awareness of MIPS technology in this subcategory remains low. MIPS has delivered equestrian helmet solutions since 2007.
The Team sports helmet subcategory is relatively large and is divided into a number of different team sports. The major team sports in which helmets are used are primarily American football, ice hockey and lacrosse. Awareness of MIPS technology in team sports is relatively low. In 2019 MIPS began to deliver solutions in this subcategory.
The category “Other” includes helmets for activities such as climbing, snowmobiling and white water rafting. In 2019 the company only delivered solutions for climbing helmets in this subcategory. Awareness of MIPS technology in this subcategory is low. MIPS has delivered solutions for helmets in this subcategory since 2018.
The moto market is a large global market that is fragmented in terms of both type and geography. The category can be divided into three different subcategories: road moto helmets, motocross helmets and helmets for the moped and scooter market. MIPS sees a large addressable market in the first two of these subcategories, but less potential in the market for moped and scooter helmets since they primarily comprise helmets at lower price points in developing countries. Awareness of MIPS technology is high in the market for helmets for motocross, but lower in the markets for road moto helmets and moped and scooter helmets. MIPS has delivered solutions for helmets in this category since 2013.
Helmets in the Safety category can be divided into two main subcategories: safety helmets for industrial use (mainly in the construction, manufacturing, mining and oil industries) and helmets in Law Enforcement and Armed Forces (LEAF).
Safety helmets for industrial use
The market for the subcategory industrial use helmets is large and estimated at more than 300 million helmets annually. The majority of these helmets are “Type I helmets”, which are a simpler form of helmets primarily intended to protect against falling objects. This type of helmet is less expensive and costs around USD 10-15. The other type of helmet in this safety helmets subcategory is “Type II helmets”, which have been added in recent years; these helmets have their origin in climbing helmets and offer more complete protection. There are different types of helmets in the class “Type II helmets” that are intended for different types of certification. These helmets are priced at USD 50–100. MIPS’ addressable market currently only includes “Type II helmets”. In 2019 the company delivered a solution for safety helmets for the first time.
Safety helmets in LEAF
MIPS estimates that the market for helmets intended for LEAF is more than 10 million helmets annually. MIPS has launched solutions in this subcategory, but to date has only delivered a limited number of MIPS BPS units for LEAF helmets. The main subcategories within the helmet market for LEAF are briefly described below.
Military – The subcategory of helmets for military use is divided int o helmets for ground forces and helmets used in the air force. Helmets for ground forces are used by both regular troops and special forces. MIPS is initially concentrating on helmets for special units, with the long-term ambition of also providing MIPS solutions for helmets used by regular troops and the air force. A distinctive feature of military helmets is that the inner liner of the helmet is usually replaced once or twice a year, which represents an interesting aftermarket for MIPS.
Police – The market for police helmets comprises helmets for riot police and helmets for ballistic protection. The latter use helmets that are often the same as those used by military special forces; these helmets are also expected to represent an interesting aftermarket, since the inner liner is usually replaced once or twice a year.
Rescue services – Helmets for rescue service workers include firefighters’ helmets (used by smoke divers), and helmets used in other rescue situations including traffic accidents, forest fires, ambulance emergency response operations, and search and rescue missions at high heights and on the water. MIPS currently delivers solutions used in search and rescue helmets.