The views expressed in this presentation do not necessarily reflect the views of AT&T.
Tom Kerber
Smart Home Market
Director, ResearchParks Associates
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Drivers and Barriers to Smart Home Adoption
The views expressed in this presentation do not necessarily reflect the views of AT&T.
62% 62%72% 69%
10% 11% 8% 9%
80%
70%
60%
50%
40%
30%
20%
10%
0%
10%
20%
Smart home services Smart home products Where to buy smarthome services
Where to buy smarthome products
Very familiar (Rating 6-7) Not familiar (Rating 1-3)%
of
Res
po
nd
ents
Barriers - Awareness
Source: American Broadband Households and Their Technologies Q2 2014 | N=10,000 broadband households, ±0.98% © 2014 Parks Associates
Smart Home Familiarity (Q2/14)
The views expressed in this presentation do not necessarily reflect the views of AT&T.
21%
26%
26%
28%
29%
29%
29%
30%
30%
31%
31%
32%
34%
34%
34%
35%
36%
39%
39%
41%
41%
43%
45%
51%
Open a pet door
Turn on/off or check the status of appliances in your laundry area
Receive a daily summary of your home's energy usage
Understand your home's energy performance
Open and close your garage door
Turn on/off or check the status of appliances
Let you know if energy use is within budget
Monitor your home's total electricity usage in real time
Identify ways of improving your home's energy efficiency
Identify if there is a problem with any major appliances
Have appliances automatically minimize electricity usage
Monitor, program, and adjust your home's thermostat
Receive alerts when energy usage is high
Use sensors to know occupancy and automatically turn off lights and appliances
Monitor indoor security cameras
Monitor outdoor security cameras
Turn on/off the lights
Lock and unlock doors
Receive alerts when motion detectors are triggered
Receive alerts when there is a water leak
Receive alerts when there is a medical emergency
Receive alerts when doors or windows are opened
Receive alerts for carbon monoxide or a gas leak
Receive alerts for smoke or fire
Barriers - No Concise Value Proposition
Source: American Broadband Households and Their Technologies Q2 2014 | N=10,000 broadband households, ±0.98% © 2014 Parks Associates
Most Appealing Smart Home Use Cases (Q2/14)
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Barriers - Upfront, Recurring Fees
Source: Homeowners with Broadband at Home Q2 2013 | N=4,000 U.S. Broadband Homeowners | © 2013 Parks Associates
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Barriers - Interoperability
Source: American Broadband Households and Their Technologies Q2 2014 | N=10,000 broadband households, ±0.98% © 2014 Parks Associates
Importance of Interoperability (Q2/14)%
Rep
ort
ing
“Ver
y Im
po
rtan
t”(R
atin
g 6
/7 w
ith
7=
“Ext
rem
ely
Imp
ort
ant”
)
1st device purchased(n=736, ±3.61%)
51%
2nd device purchased(n=573, ±4.09%)
58%
3rd device purchased(n=520, ±4.3%)
60%
The views expressed in this presentation do not necessarily reflect the views of AT&T.
39% 38%
24% 20%
Concern over unauthorized access Concern over historical data
Concerned (Rating 5) Very concerned (Rating 6-7)
Barriers– Privacy and Security
Source: American Broadband Households and Their Technologies Q2 2014 | N=10,000 broadband households, ±0.98% © 2014 Parks Associates
Smart Home Privacy Concerns (Q2/14)
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Drivers - Huge Brands Entering the Market
The views expressed in this presentation do not necessarily reflect the views of AT&T.
• Complementary Product Sales
• App Sales, Upgrades
• Advertising, Lead Generation
• Data Exchange
• Energy Savings, Demand Response
• Transaction Fees
• Subsidizing Upfront Costs
Drivers - Business Innovation
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Data Collection
Display
Modeling
Notifications
Prediction
Intelligent Control
Reporting
Adapt and Learn
Drivers - Data Creating Growing Value
The views expressed in this presentation do not necessarily reflect the views of AT&T.
• Low awareness
• No concise value proposition
• Initial cost, recurring fees
• Interoperability
• Privacy and security
Market Barriers
• Big brands entering market
• New business models
• Value-added services
Market Drivers
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Smart Product Adoption
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Two Paths to Market
Products Systems
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Yes, 13%No, 83%
I’m not sure, 4%
Smart Home Product Adoption
Source: American Broadband Households and Their Technologies Q2 2014 | N=10,000 broadband households, ±0.98% © 2014 Parks Associates
Adoption of Smart Home Control Products (Q2/14)
The views expressed in this presentation do not necessarily reflect the views of AT&T.
3%
3%
4%
4%
4%
4%
5%
5%
5%
5%
6%
6%
6%
6%
6%
Water leak detectors
Sprinkler system
Blinds or drapes
Combination sensor
Home or Kitchen appliances
Power strip
Door bells
Outlet/plug
Carbon monoxide detectors
Garage door openers
Door locks
Security camera
Smoke detectors
Programmable thermostat
Lights
Smart Home Product AdoptionAdoption of at Least 1 of the Listed Smart Home Devices (Q2/14)
Source: American Broadband Households and Their Technologies Q2 2014 | N=10,000 broadband households, ±0.98% | © 2014 Parks Associates
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Smart Home Product Adoption
Source: American Broadband Households and Their Technologies Q2 2014 | N=10,000 broadband households, ±0.98% © 2014 Parks Associates
Smart Home Devices as System or Stand-alone Device (Q2/14)
…part of a home control system that controls multiple devices
…stand alone devices, not part of any system
…part of a home security system58% 58% 52% 48% 50% 46% 48% 42% 42% 39% 36% 37% 32%
9% 8%9% 11% 9%
10% 7%12% 10% 12%
10% 8% 13%
32% 34% 39% 41% 41% 44% 45% 47% 48% 49% 54% 55% 55%
Do
or
lock
s
Secu
rity
cam
era
Co
mb
inat
ion
sen
sor
Wat
er
leak
det
ect
ors
Car
bo
n m
on
oxi
de
det
ecto
rs
Smo
ke d
ete
cto
rs
Do
or
bel
ls
Ligh
ts
Gar
age
do
or
op
ener
s
Ou
tlet
/plu
g
Pro
gram
mab
le t
her
mo
stat
Blin
ds
or
dra
pes
Po
wer
str
ip
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Value Added Services
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Value Added Services Command 3X Price
Source: American Broadband Households and Their Technologies Q2 2014 | N=10,000 broadband households, ±0.98% © 2014 Parks Associates
58%42%
Smart Thermostat: Preference (Q2/14)$99—A programmable thermostat that can:-Be monitored for status or controlled from a smartphone, tablet or computer
$299—A programmable thermostat that can:-Be monitored for status or controlled from a smartphone, tablet or computer
-Display the current weather forecast
-Use weather forecast to save money by running your air conditioner or furnace when it is most efficient
-Increase your home’s energy efficiency by “learning” your daily routines and temperature preferences
-Automatically make minor adjustments to save money by operating your system when electricity prices are low
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Value Added Services Command 4X Price
Source: American Broadband Households and Their Technologies Q2 2014 | N=10,000 broadband households, ±0.98% © 2014 Parks Associates
47%
53%
Smart Smoke Detector: Preference (Q2/14)
$29—A smoke detector that can:-Be monitored for status or controlled from a smartphone tablet or computer
$129—A smoke detector that can:-Be monitored for status or controlled from a smartphone, tablet or computer
-Send you alerts when the battery needs to be replaced
-Send you alerts when the alarm is triggered telling you about the event and location
-Automatically shut off the furnace or air conditioner in the event ofa fire
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Value Added Services Drive Replacement
Source: American Broadband Households and Their Technologies Q2 2014 | N=10,000 broadband households, ±0.98% © 2014 Parks Associates
While it’s still working properly,
61%
Only when it stops working properly, 39%
Advanced Smart Smoke Detector: Likelihood of Replacing Functioning Unit (Q2/14)
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Bundling Services Together
Source: American Broadband Households and Their Technologies Q2 2014 | N=10,000 broadband households, ±0.98% © 2014 Parks Associates
21%
26%
26%
28%
29%
29%
29%
30%
30%
31%
31%
32%
34%
34%
34%
35%
36%
39%
39%
41%
41%
43%
45%
51%
Open a pet door
Turn on/off or check the status of appliances in your laundry area
Receive a daily summary of your home's energy usage
Understand your home's energy performance
Open and close your garage door
Turn on/off or check the status of appliances
Let you know if energy use is within budget
Monitor your home's total electricity usage in real time
Identify ways of improving your home's energy efficiency
Identify if there is a problem with any major appliances
Have appliances automatically minimize electricity usage
Monitor, program, and adjust your home's thermostat
Receive alerts when energy usage is high
Use sensors to know occupancy and automatically turn off lights and appliances
Monitor indoor security cameras
Monitor outdoor security cameras
Turn on/off the lights
Lock and unlock doors
Receive alerts when motion detectors are triggered
Receive alerts when there is a water leak
Receive alerts when there is a medical emergency
Receive alerts when doors or windows are opened
Receive alerts for carbon monoxide or a gas leak
Receive alerts for smoke or fire
Most Appealing Smart Home Use Cases (Q2/14)
The views expressed in this presentation do not necessarily reflect the views of AT&T.
41%
40%
38%
38%
37%
36%
36%
35%
26%
28%
29%
30%
30%
31%
34%
34%
…receive a daily summary energy consumption
...understand your home’s energy performance
...let you know if energy use is within budget
…monitor your home’s total electricity usage in real time
…identify ways of improving your home’s energy efficiency
…identify problems with major appliances
…receive alerts when energy usage is high
...use sensors to automatically turn off lights and appliances when home is unoccupied
Not appealing (Rating 1-3) Very appealing (Rating 6-7)
Energy Related Use Cases
Source: American Broadband Households and Their Technologies Q2 2014 | N=10,000 broadband households, ±0.98% © 2014 Parks Associates
Appeal of Smart Energy Features (Q2/14)
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Source: American Broadband Households and Their Technologies Q2 2014 | N=10,000 broadband households, ±0.98% © 2014 Parks Associates
Willingness to Subscribe to Smart Energy Service (Q2/14)
Value of a Bundle of Energy Services
% o
f B
B H
Hs
“Ver
y Li
kely
” to
Su
bsc
rib
e
$9.99 per month
43%
$4.99 per month
59%
$2.99 per month
69%
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Tom KerberDirector of Research, Parks Associates
Thank You
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Bill Morelli
Consumer IoT
Director, IoT, M2M & Connectivity
IHS
Smartphones as the Passport to the IoT
The views expressed in this presentation do not necessarily reflect the views of AT&T.
• Internet of Things Overview• Definition• Evolution• Market Size
• Consumer IoT Market• Smart Home• Connected Car• Wearables
• Technology Insights
• Smartphone
Agenda
The views expressed in this presentation do not necessarily reflect the views of AT&T.
• IoT is a conceptual framework
• It’s about enabling connectivity and embedded intelligence in devices
• Some of these devices are connected today, but MANY are not
•Not strictly machine-to-machine (M2M) – also machine-to-people, people-to-machine, machine-to-objects, people-to-objects
•Creates the ability to collect data from a broad range of devices
•Data can be accessed via the cloud and analyzed using “big data” techniques
The Internet of ThingsWhat is the “Internet of Things”?
IoT can be used to provide unique value propositions and create complex information systems which are greater than the sum of the individual components.
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Industrial•Building Automation•Commercial Transportation• EFT-POS & Smartcards• Industrial Automation• Lighting•Power & Energy• Security• Test & Measurement•Other Industrial & Commercial
IoT Application SegmentsAutomotive• Infotainment•Under-the-hood
Communications•Consumer CPE• Enterprise CPE• Last-mile Access•Backbone•Mobile Handsets and Infrastructure
Computers•Desktop• Server•Portable Computing
(Netbook, Notebook & Tablet)
Medical•Consumer Medical• Imaging•Other Medical
Military & Aerospace•Commercial Aerospace•Military Equipment
Consumer•Home Appliance•Home Automation•Home Consumer Electronics•PC Peripherals & Office Equipment•Portable CE• Smart Toys• Sports and Fitness•Other Consumer
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Wired WPAN WLAN WWAN
• 2G Cellular• 3G Cellular• 4G Cellular
• 802.11a/b/g• 802.11n• 802.11ac• 802.11ad• Other 802.11• DECT ULE• Other 2.4GHz• Other Sub-GHz
• ANT+• Bluetooth –
Classic and Smart Ready
• Bluetooth Smart
W-Mesh
• ZigBee PRO• ZigBee RF4CE• ZigBee Multi-Protocol• EnOcean• ISA100.11a• WirelessHART• Z-Wave• Other 802.15.4
• Ethernet, Coax, Fiber, etc. considered as a single category
IoT Technologies
The views expressed in this presentation do not necessarily reflect the views of AT&T.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2012 2013 2014 2016 2019 2022 2025
Automotive Communications Computers Consumer
Industrial Medical Military & Aerospace Device Shipments
Source: IHS © 2014 IHS
IoT Extended Forecast - Internet Connectable Devices - Installed Base & Device Shipments
Ins
tall
ed
Ba
se
(M
)
De
vic
e S
hip
me
nts
(M
)
IoT Extended Forecast, 2011-2025Installed base
includes both active connections and
connectable devices which are
not networked
Industrial category includes a wide range on non-
consumer applications
(transportation, power and energy,
security, etc.)
The views expressed in this presentation do not necessarily reflect the views of AT&T.
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
2013 2014 2015 2016 2017 2018 2019
Automotive Consumer CPE Consumer Medical Home AutomationHome CE PC Peripherals Portable & Desktop PC Portable CESmart Toys Sports & Fitness
Source: IHS © 2014 IHS
Consumer Internet Connectable Devices - Installed Base
Co
nn
ecta
ble
Devic
es (
K)
Consumer IoT Forecast, 2013-2019
Tablets, laptops and connected accessories are expected to see
continued growth
Smart Home is expected to see
significant uptake in the next 5 years
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Connect Devices
Collect Data
Access Data
Complex Analytics
Unique Value
Internet of Everything (IoE): Represents the open access to data from one or more monitoring and control systems by third-party applications to provide unique, additional value to stakeholders.
• Connectivity• Intelligence
• Sensors• Storage
• Cloud• Standards• Open APIs
• “Big Data” • Realize the true potential of a connected society…
Internet of Things Evolution
Next stage –security is key challenge!
Where we are today Ideal goal –many years away
The views expressed in this presentation do not necessarily reflect the views of AT&T.
• Three main IoT touchpoints for consumers to interact with IoT are home, car and wearables (everywhere)
• Smart Home
• Connected Car
• Wearables
Consumer IoT Market
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Consumer IoT Environments
Paradigm shift in the past decade – individuals used to access the internet at home and work.
Today, thanks to near ubiquitous wireless coverage, consumers can access the internet anywhere…
…and so can their devices.
The views expressed in this presentation do not necessarily reflect the views of AT&T.
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2011 2012 2013 2014 2015 2016 2017 2018
Energy Management Hazard Detection
Healthcare or Independent Living Home Monitoring
Lighting Controls Other
Source: IHS © 2014 IHS
Smart Home Subscribers by Application
Sm
art
Ho
me S
ub
s (
K)
Smart Homes: Overview
What is a “Smart Home”?
• IHS: Low-bandwidth home network used for command or control applications
• Main application types:
• Energy Management
• Home Monitoring
• Hazard Detection
The views expressed in this presentation do not necessarily reflect the views of AT&T.
0
50,000
100,000
150,000
200,000
250,000
2012 2013 2014 2015 2016 2017 2018
Americas Asia Pacific EMEA
Source: IHS © 2014 IHS
Smart Home Device Shipments by Region
Sm
art
Ho
me
Su
bs
(K
)
Smart Homes: Forecast
• Annual smart home automation device shipments projected to grow from 25M in 2013 to 190M in 2018
• Home monitoring (safety and security) devices lead the way, driven by North American consumer requirements
• In US, service providers are forecast to see the highest growth in share; as multi-service operators like AT&T, Comcast, Time Warner and others start to penetrate mass-market households
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Key Points: Smart Home
• Diverse supplier landscape improving availability of affordable systems
• Varying consumer requirements, but security and privacy are vital
• Interoperability and user interface fragmentation
• Connected variants of smart home devices projected to slowly become the new “norm”
• Long life-cycle device OEMs look to connected devices to drive upgrades, offer value-add features and remain “current” throughout lifespan
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Key Trends Other InformationEmbedded Modem
• First telematics service• Leading telematics approach• Growth from eCall mandates
• OnStar is leading system• Through 2018• Europe, Russia and Brazil
Mobile or Smartphone
• Strong growth from Smartphone• Ford most successful system• Emerging services as apps
• Mostly a niche market earlier• Japan first: navigation services• Use Smartphone data plan
Hybrid or Both • Emerging as long-term favorite• Embedded for car-centric info• Smartphone for cloud content
• Leader after 2018• Due to higher security• Smartphone apps and data plan
Connected Car Trends
The views expressed in this presentation do not necessarily reflect the views of AT&T.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2014 2015 2016 2017 2018
Un
it S
ale
s (
#K
)
Source: IHS Automotive © 2014 IHS
Mobile Disruption in Automotive
Take-Away
• Google and Apple succeed as OEM partnerships grow
• CarPlay and Android Auto have shortened the window of opportunity for MirrorLink and increased barriers
MirrorLink Android Auto Apple CarPlay
Phone Projection Growth in Global OEM Platforms
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Key Points: Connected Car• Innovation in the connected car is occurring rapidly
outside of the “traditional” automotive supply chain
• Tech company partnerships and alliances are critical for automakers to stay relevant
• Connected car data becomes a critical component of daily operations and product development as 152 million vehicles begin transmitting 11.1PB of data by 2020
• Automakers are taking advantage of the connectivity and UX real estate offered by wearables to provide services and remote access
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Healthcare and MedicalBlood Pressure MonitorsGlucose MonitoringECG MonitorsPERS
Fitness and WellnessActivity MonitorsFitness and Heart Rate MonitorsPedometersSmart Clothing
InfotainmentBluetooth HeadsetsHead-up DisplaysImaging ProductsSmart GlassesSmart Watches
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2012 2013 2014 2015 2016 2017
World: Application store revenues ($m)
Apple App Store Google Play Other
Wearable Technology Overview• Market growing rapidly
• 2013: $10B from 105M units • 2019: $34B from 230M units (forecast)
• Service revenue to exceed $6B in 2019
• N. America and Europe account for 70% of global revenue
• Successful wearable app strategies should tie in to existing app ecosystems
The views expressed in this presentation do not necessarily reflect the views of AT&T.
44%
12%
11%
8%
7%
6%
4%2%
Health & Fitness
Lifestyle
Music
Utilities
Entertainment
Games
Sports
Photo & Video
Social Networking
Navigation
Business
Weather
Education
Health & Fitness services dominate apps for wearable
and peripheral devices
Wearable Tech AppsWearable and Peripheral Apps by Category (%)
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Key Points: Wearable Tech
• Device, service, app and OS compatibility is crucial
• So far, wearable apps and devices are an extension of smartphone ecosystems
• Health and Fitness apps dominate – but there is room for other categories
• Apps for wearables are unlikely to match smartphone and tablet app revenue success –but business models are evolving
• Advertising will play a role, with the correct data strategy
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Consumer IoT and Smartphones
• Role of the smartphone in Consumer IoT• Identity
• Security
• Data integration
• Opportunities for developers using smartphoneas entry point
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Cellular, Wi-Fi,
Bluetooth Classic, Wi-Fi, tether
Bluetooth Smart, ANT+, NFC
Smartphones
• Smartphones are the most connected device in the world based on the breadth of technologies
• Can communicate PAN, LAN, WAN
By 2017, 91% of handsets
sold will be smartphones
The views expressed in this presentation do not necessarily reflect the views of AT&T.
In 2016, smartphones will represent85% of mobile subscriptions
in the US
Smartphones: IoT Passport
• Smartphones already widely used in home
• Use in cars increasing, more integration coming
• Most wearables rely on smartphone tethering
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Smartphones are the entry point
to Consumer IoT!
Key Takeaways
• Much of the value of IoT will come from the integration of data from disparate sources
• Consumer IoT strategies should focus on interoperability, try to leverage multiple platforms
• Consumer requirements will vary based on vertical area, platform, and use case, but security and privacy are vital!!
• Don’t just solve today’s problems – look at solving future problems leveraging emerging classes of connected devices
The views expressed in this presentation do not necessarily reflect the views of AT&T.
© 2014 IHS. No portion of this report may be reproduced, reused, or otherwise distributed in any form without prior written consent, with the exception of any internal client distribution as may be
permitted in the license agreement between client and IHS. Content reproduced or redistributed with IHS permission must display IHS legal notices and attributions of authorship. The information
contained herein is from sources considered reliable but its accuracy and completeness are not warranted, nor are the opinions and analyses which are based upon it, and to the extent permitted
by law, IHS shall not be liable for any errors or omissions or any loss, damage or expense incurred by reliance on information or any statement contained herein. For more information, please
contact IHS at [email protected], +1 800 IHS CARE (from North American locations), or +44 (0) 1344 328 300 (from outside North America). All products, company names or other marks
appearing in this publication are the trademarks and property of IHS or their respective owners. V2.0-29.04.14
Americas: +1.800.IHS.CARE (+1.800.447.273); [email protected]
Europe, Middle East, and Africa: +44.(0).1344.328.300; [email protected]
Asia and the Pacific Rim: +604.291.3600; [email protected]
Contact us
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Q&A
The views expressed in this presentation do not necessarily reflect the views of AT&T.
Thank You