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Agile development of physical products is on the rise. But can it live up to its promise? This study investigates and opposes expected (reasons for adopting) and actual effects (real value) of agile development specifically of physical products. By conducting an online survey, it turns out that primarily improvements in soft factors like communication, reaction time to changes, transparency and flexibility are associated with agile development. It has less positive effects on hard controlling KPI's such as project lead time or costs. A means-end analysis helps to explain why.

EXPECTED VS. REAL EFFECTS OF AGILE DEVELOPMENT OF PHYSICAL PRODUCTS: APPORTIONING THE HYPE