www.ovum.com © Copyright Ovum 2014. All rights reserved. Smart Home: The Next Big Thing? Michael Philpott – Practice Leader, Consumer services [email protected]
www.ovum.com
© Copyright Ovum 2014. All rights reserved.
Smart Home: The Next Big Thing?
Michael Philpott – Practice Leader, Consumer services
2© Copyright Ovum 2014. All rights reserved.
Independent applications will remain limited
Cost
Val
ue
Professional Home
security
Home automation
Home monitoring
Smart energy
Smart care
Existing market –~30% homes
Niche market – ~1% homes
Goes beyond traditional market, but still limited
Target 100% homes to have a smart meter by 2020
By 2035, ~25% aged over 65 - 36% live alone. Only 16% of people aged 85+ live in care homes.
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True mass-market value is created by interoperability
Smart living
Energy
Health
Entertainment
Travel
Home
Communication
Interoperability across verticals
New use-cases increase value of individual parts
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This can’t be a one-horse race
Individual stakeholders must develop their strategies with an integrated smart home in mind
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Small steps to success
Smart meter deployment
Link-in third-party
appliancesSmart thermostats / smart energy
package
Additional value
through basic home automation
Link-in other smart home
services
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Existing markets – done better / cheaper
Set up from £99+
Monitoring ~£25
UK home security market
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Putting home security at the core – AT&T Digital Life
Home security
Smart energy
Home automation
Home monitoring
From $9.99pm From $4.99pm
From $4.99pm
$39.99pm
~300k-400k customers
~Approximately 1/3 take home automation products
“Flexibility is certainly key”
“Once they have a number of different items – want to link them together”
“Want to expand digital life outside of the home”
“Opportunity to [link] entertainment. Personal cloud will act as the glue”
“Turning point in industry is to bring companies together, rather than competing”
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Not all opportunities are the same
Smart home is about meeting basic needs in a better way
Priorities will be different based on local demographics
Households with traditional home security
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Smart living
Energy
Health
EntertainmentTravel
Home
Communication
For more retail opportunities, is there a service wrap?
Home network
Support
CloudInstallation
&Maintenance
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Conclusions and what’s next
So is the smart home the next big thing?
Apps and tech must be integrated to create truly valuable experiences
Initial focus needs to be on making existing services better
Home security isn’t the answer in every country
How can other areas such as smart energy, smart care be monetised?