MARKET OVERVIEW

Based on an ingredient brand model, we sell MIPS Brain Protection System (BPS) to the global market for helmet solutions, which are designed to protect against rotational motion transmitted to the brain from an angled impact to the head (called “rotational motion”). As the technology to offer such protection has only recently been made available to the helmet brands, and thereby also to consumers, the market is relatively new.

MIPS BPS is designed to add protection against rotational motion and the technique can be implemented in the consumer helmet market such as winter sports, cycling, horse riding and motor racing helmets, and also in the commercial helmet market, for instance military and police helmets and helmets for rescue services. Our estimate is that these markets together make up an annual volume of more than 70 million helmets. The underlying helmet categories show a varying level of market penetration for this type of protection. Because of the growing awareness of risks associated with rotational motion, MIPS is expecting continued market growth for helmet solutions that offer relevant protection.

The market for consumer helmets

The market for consumer helmets comprises several helmet categories used for sport and/or transportation. MIPS estimates that this market amounts to an annual volume of more than 60 million sold helmets per year. The company’s initial focus was on the medium and premium segments (at a price point per helmet of about USD 40 and up), but in light of the development of new solutions the market is now demanding MIPS solutions also in lower price segments. The company estimates that it today can address 33 million units within the consumer market. MIPS estimates the replacement cycle for a helmet to be around 5–8 years however this might be even shorter due to an increased interest in safety and technology.

The most important helmet categories for MIPS in the market for consumer helmets are:

Bike

Bike helmets currently comprise MIPS’ biggest category by far. Bike helmets can be divided into two subcategories: commuting (children/city use) and competition (racing/ sports enthusiasts, including helmets for road bikes and mountain bikes). Helmets have also been developed for the rapidly growing e-bike category, but this market is still relatively small. MIPS has been supplying BPS units to the Bike helmet category since 2010. Awareness of MIPS BPS solutions in this category is high and deviations are geographically determined.

Snow

The snow category comprises both alpine skiing and snowboarding helmets and is divided into two subcategories: recreational use (children/family/novice and intermediate levels) and advanced use (park/backcountry and freestyle, as well as alpine competitions). MIPS has been supplying BPS units since 2010. Awareness of MIPS BPS solutions in this category is high and deviations are geographically determined.

Moto

The moto market has the greatest potential in terms of the addressable market due to large volumes at higher price points than other consumer market categories. The category can be divided into two subcategories: motorcycle (commuting/recreational helmets and competition helmets) and motocross. MIPS delivered its first BPS unit in 2013. Acceptance of MIPS solutions is high in the motocross category, while awareness of MIPS BPS solutions is still relatively low in the motorcycle category.

EQUESTRIAN

The first MIPS BPS unit was delivered in this category in 2008. The interest in MIPS BPS is growing within this category and it is now also available for polo. The awareness of MIPS BPS solutions is relatively low in this category.

Team sports

The team sports category primarily includes football, hockey and lacrosse. MIPS has solutions for helmets in the team sports category, but has not yet delivered any solutions in this category.

Other

The other category comprises helmets for motor sports, baseball, mountaineering , snowmobiles, rafting, etc. In 2018, MIPS delivered solutions for mountaineering helmets solely. The awareness of MIPS BPS solutions is relatively low in this category.

The market in helmets for commercial use

MIPS estimates the market for helmets intended for professional use (LEAF – Law Enforcement Armed Forces), which MIPS initially intends to focus on, to have an annual volume of more than 10 million helmets. In 2018, MIPS did not deliver any MIPS BPS units in this category. However, MIPS presented a helmet designed for military use in partnership with the Swedish brand SAFE4U. The most important helmet categories for MIPS in this market are:

Military

Helmets for military use consist of two subcategories: helmets for ground forces and for the air force. Helmets for ground forces are used by both regular special forces and troops. MIPS is initially focusing on helmets for special units, but the long-term ambition is to also provide MIPS solutions for helmets used by regular troops and the air force. One distinctive feature of military helmets is that the helmet liner is usually replaced once or twice a year, which represents an interesting aftermarket for MIPS.

LAW ENFORCEMENT

The market for law enforcement helmets comprises helmets for riot police and ballistic helmets. Helmets for ballistic protection are often used by military special forces and is therefore expected to represent an interesting aftermarket with replacement of the helmet liner once or twice a year.

Rescue services

Helmets for the rescue services include firefighter helmets used by smoke jumpers, 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 water.