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. We estimate that this market amounts to an annual volume of more than 60 million sold helmets. In this market, our initial focus is on medium to premium-priced helmets (that cost around USD 40 and more in retail stores), which represent an estimated total annual volume of more than 33 million sold helmets. Over the last ten years, we have seen a trend towards shortened replacement cycles for helmets, which is based, we believe, on an increased safety awareness and greater interest in new designs and new technologies.

The most important helmet categories for MIPS in the market for consumer helmets (estimated annual volumes) are:

Bicycle

Estimated annual volume of more than 25 million helmets, of which we estimate our initial focus market comprises more than 10 million helmets.

Bicycle helmets can be split into two main categories: commuter (children/city use) and competitive (competitions/sport enthusiasts, including helmets for country road cycling and mountain bikes). In 2010, the first MIPS BPS was supplied for bicycle helmets and in 2017, we supplied 44 bicycle helmet brands.

Winter sports

Estimated annual volume of more than 6 million helmets, of which we estimate our initial focus market comprises more than 5 million helmets. Winter helmets can be split into two main categories: leisure use (children/family/beginner and medium level) and advanced use (freestyle and off-piste skiing/alpine competitions). In 2010, the first MIPS BPS was supplied for winter sports helmets and in 2017, we supplied 22 winter sports helmet bran

Motorcycle

Estimated annual volume of more than 20 million helmets, of which we estimate our initial focus market comprises more than 15 million helmets.

Motorcycle helmets can be split into two main categories: motorcycle (comprising commuter/leisure helmets and competitions helmets) and motocross. In 2013, the first MIPS BPS was supplied for motorcycle helmets and in 2017, we supplied 12 motorcycle helmet brands.

Horse riding

Estimated annual volume of more than 2 million helmets, of which we estimate our initial focus market comprises more than 1 million helmets. In 2009, the first MIPS BPS was supplied for horse riding and in 2017, we supplied two horse riding helmet brands.

Team sports

Estimated annual volume of more than 3 million helmets, of which we estimate our initial focus market comprises more than 2 million helmets.

Team sports comprise American football, ice hockey and lacrosse, for example. Helmets for American football are characterised by a particular repair cycle, where the inside lining can be replaced every year, while the outer shell follows the general replacement cycle.
To date, we have not supplied this category. However, we are developing products designed for this helmet category.

Other

In this market the estimated annual volume is more than 4 million helmets. In this category, helmets are, for instance, for car racing, baseball, climbing, snowmobile, wakeboard/kiteboard and white-water rafting and canoeing. To date, we have not supplied this category.

The market in helmets for commercial use

We estimate that the market for helmets for commercial use, which MIPS initially can focus on, amounts to an annual volume of more than 10 million helmets. The most important helmet categories for MIPS in the market for commercially used helmets are:

Military

Military helmets can be split into two main categories: helmets for land forces and for the air force. Helmets for land forces are used by special forces and regular forces, while air force helmets can be split into helmets for helicopters and aircraft. Our initial focus is on helmets to the special forces, but the long-term goal is to also supply MIPS solutions to helmets used by the regular forces and air force. We have had discussions with companies over several years who manufacture military helmets and noticed an increase in interest to implement protection again rotational motion in military helmets. A characteristic feature of ballistic helmets, which make up the main part of all helmets in the military, is that the outer shell of the helmet has a life cycle of many years while the inner lining is usually replaced every other year. This could result in additional demand for MIPS BPS. We are currently developing products for this category.

Police

The market for police helmets is made up of helmets for the riot police and ballistic helmets, which are similar to the helmets used by the special forces in the military, thereby having the same distinctive features regarding repair and replacement cycles.

Rescue services

The market for rescue service helmets comprises helmets for the fire brigade that are used in smoke rescue and helmets that are used during search and rescue operations, including traffic accidents, forest fires, ambulance call outs and search and rescue operations at high altitude or on water. Helmets used in search and rescue operations are usually replaced if the helmet has been badly damaged.