JETSONS OR JUSTIFIED? THE INTERNET OF THINGS IN THE HOME John Chambers Executive Director Home and Premium Services International and New Business
Apr 08, 2017
JETSONS OR JUSTIFIED?
THE INTERNET OF THINGS IN THE HOME
John ChambersExecutive DirectorHome and Premium ServicesInternational and New Business
WHERE WILL IT ALL END?
Whole Home Energy
Management
Home Services Revolution
Intelligent Insurance
Collaborative CitiesSupport for aging and
those with a disability
The Home IOT market will mature …driven by Awareness, Utility, Trust
INCEPTION GROWTH MATURITYTIMEDial Up Internet Early Broadband Modern Broadband
Smart Home
Fixed Internet
Avg. Spend$15-30 mth
”Always on” internet, new use cases emerge, providers consolidate
Incremental spend, non-essential service
Penetration (’96)~5%
Avg. Spend Penetration (’16)
High Speed FBB a
necessity
$30-60 mth
Spend offset by other wallet reductions
40%
Avg. Spend Penetration (’01)$50-100 mth
Essential home service and monthly spend
>60%
Lots of smaller players and start-ups, almost endless devices, many emerging
platforms and protocols
Platforms and providers start to consolidate, alternate applications start
to emerge
Few main platform players and home services transform into a wealth of different, integrated smart services
Today Next 5 Years 6 Years and Beyond
Others?
$15-30 mth
Incremental spend, non-essential service
~1% $30-60 mth
Starts to add real value / drive cost savings
40% $50-100 mth
Essential home service and monthly spend
>60%Avg. Spend Penetration Avg. Spend PenetrationAvg. Spend Penetration
Fewer, yet to be determined plat-form providers will emerge
Integrated smart services become the norm
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As the Home IOT market is still emerging, there is a large variance across market size forecast estimates…
20132014
20152016
20172018
20192020
20210.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
$ bi
llion
s
Other Analyst 2 $216m
Telstra Estimate
>$1b
Telsyte $3.2b
Other Analyst 1(Incl. Security)
$2.8b
Although not entirely comparable, forecasts by Telsyte, Frost & Sullivan vary greatly but are all positive of the market growth potential
MARKET FORECAST COMPARISON
2013 2014 2015 2016 2017 2018 2019 20200
5
10
15
20
25
30
35
7.4 8 9.211.4
14.6
20.7
24.8
28.7
INTERNET CONNECTED DEVICES IN THE HOME –
Sources: Telsyte, Analyst research, Telstra Research
With approx. 11M households by 2020, there could be up to 200M new internet connected devices bought between now and 2020 in Australia
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Telsyte IoT @ Home Market Study 2016
Annual revenue ($m) 2015 (e) 2016 (f) 2020 (f) CAGR (16-20)
Smart Energy $85 $139 $996 64%
Smart Security $46 $90 $635 63%
Smart Lifestyle $56 $81 $1,698 107%
Smart hubs (dedicated) $5 $9 $69 65%
IoT@home services and installation $39 $65 $624 76%
Total $231 $383 $4,022 79%
Smart lifestyle and managed services expected to grow fastest to 2020
Telsyte IoT @ Home Market Study 2016 5
IoT@home market, 2015 to 2020 (A$ million)
So many options…
INTRODUCING TELSTRA SMART HOMEBe at home, even when you can’t be there
Simple self install (or optional professional install for a fee)
24/7 Smart Home Tech Support
Telstra Smart Home app Telstra Platinum phone
support for the first 90 days*
SMS and email alerts Telstra Smart Home Community Record up to 30 video clips per
day, stored for 30 days in the cloud
All content securely hosted in Australia
Both starter kits also include:
The ‘Watch and Monitor’ option will give customers peace of mind by allowing them to keep an eye on things when they’re away from home with a Smart Home hub, two door sensors and camera with an inbuilt motion sensor that can be set up to send instant alerts to their mobile devices.
INTRODUCING TELSTRA SMART HOMEBe at home, even when you can’t be there
Simple self install (or optional professional install for a fee)
24/7 Smart Home Tech Support
Telstra Smart Home app Telstra Platinum phone
support for the first 90 days*
SMS and email alerts Telstra Smart Home Community Record up to 30 video clips per
day, stored for 30 days in the cloud
All content securely hosted in Australia
Both starter kits also include:
The ‘Automation and Energy’ option comes with a Smart Home hub, two smart power plugs, two door sensors and a motion sensor, helping customers set up tailored automation or energy solutions for their home.
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