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Smart Home: The Next Big Thing?

Michael Philpott – Practice Leader, Consumer services

michael.philpott@ovum.com

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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?

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Thank you