Smart Home: Crossing the Chasm - IFA Berlin · Crossing the Chasm from Smart to Intelligent We are...

1© GfK April 26, 2019 | Smart Home

Smart Home:

Crossing the Chasm

IFA Global Press Conference

26th of April 2019, Huelva

Igor Richter | Global Strategic Insights


Smart home as natural evolution

Our homes went through an unprecedented rate of change in the past

decades and it is not yet over. It is not about whether or not Smart Home will

happen, it is about how to remove barriers for its adoption.

IntelligentContextual awareness

Smart & ConnectedLighting, Thermostats, Cameras, Appliances

Email & Internet Connectivity beyond the homes’ boundaries

ComputerizationComputing power brought to our homes

ElectrificationDistribution of AC power to households

~1880s

~1970s

~1990s

~early 2010s

~mid 2010s


Global market for TCG (technical consumer goods): Regional split 2019f

Consumers in Europe and globally are going to spend significant amount of

money this year on Smart Technical consumer goods.

North America

€208bn +2% Asia-Pacific

€440bn ±0%

Latin America

€70bn -3% Middle East & Africa

€68bn +2%

Europe

€267bn +1%

Global TCG Market: Consumer Electronics incl. Photo, Small/Major Domestic Appliances, Telecomms, IT incl. Office

Source: GfK Point of Sales Tracking and total market estimation incl. North America, based on a fixed currency exchange rate

Global

Turnover €1,052bn

Growth Rate +1%

Smart ~ 67%


Early adopters buy for very different reasons than the mass market majority.

Adopted from G Moore’s ‘Crossing the Chasm’

Our Homes already have many ‘smart & connected’ devices.

Early adopter market

Mass Market

Chasm

Smartphones

Visual Cameras

Washing Machines

Powered Lawnmowers

LEDs

Smart Watches

Personal Scales

Audio Home SystemsTVs

Air Treatment

Robotic Vacuum Cleaners

Alert Detectors


14% 11% 8%

29%21%

7%

23%

7% 4%

79%

61%

75%

POWEREDLAWNMOWERS

ALERTDETECTORS

LED LAMPS AIRTREATMENT

PERSONALSCALES

ROBOT VC WASHINGMACHINES

COOLING DISHWASHERS TV's VISUAL CAMS* AUDIO HOMESYSTEMS

Smart Connect Product Groups (EU5 Sales Value %): 2018

2%

9%

Most important smart home use cases for consumers

Smart devices to cater for basic practical and safety needs;Communication among appliances as the next important use case

Optimize energy usage

Remote home monitoring

Appliances communicate with each other

48%

53%

41%

0.5%

4%3%

8%

Small Domestic Appliances

Major Domestic Appliances

Consumer Electronics

43%

58%

Home

& Living

Sources: GfK Panel market. Smart home devices. Germany, UK, France, Italy & Spain. Value in Euro fix

GfK Consumer Insights Engine


75%

6%

12%

6%

1%

83%

11%

5%

1%0%

Smart & Connected Devices: EU5 2018

Note: GfK Panel market. Smart home devices. Germany, UK, France, Italy & Spain. Value in Euro fix

Smart Entertainment is the largest category, however, Smart

Appliances and Smart Lighting show double-digit growth.

Units

+16% yoy

6%

49%

1%

78%

6%

Value

+12% yoy

19%

52%

0%

104%

13%

Units

Share

Value

Share


Delivering Convenience through Simplification


Channel specific

availability as

some Smart Home

categories are

sold directly B2C,

or as part of a

Utility service.

Smart home seen

as the technology

most likely to

have a potential

impact on

consumers’ lives.

Alignment with key themes: Smart Home

Performance PremiumBorderless

Shopping

Developing

EconomiesSimplification

Performance

hindered by

teething

problems.

Opportunity to

enhance it through

AI & machine

learning.

Embedded

complexities due

to devices

speaking many

communication

protocols. Limited

compatibility.

Availability of

basic solutions,

not so much of

their premium

versions yet.

Although Smart Home promise is all about Simplification, it requires an effort to deliver that. It was not mean to be a chore.

Note: Based on Smart Home reviews:


Security & Control Smart AppliancesSmart HealthSmart Entertainment &

Connectivity

Smart Energy &

Lighting

Smart Home use cases

Source: GfK Consumer Life

Consumers expect that smart & connected solutions will turn their homes to a

better Secured, Healthier, Efficient and Automated place. However, their

attitudes towards technology matters as well.

Q: I really like the idea of

technology that 'knows' me

and can make

recommendations and take

actions based on my wants

and needs.

Older Generation

6%

Young Families

24%

Young Generation

13%


Once the smart propositions are anchored to the consumer needs, it works

New, well-defined value proposition that cater to the consumers needs is

needed to take the smart technology to the mass market.

Consumer need

Usability

Inter-operability

Plug & play

Alignment with consumer preferences

Smart Home Solution

Devices

Application

Ecosystem


Crossing the Chasm from Smart to Intelligent

We are already witnessing the ‘Smart’ future today.

It is called ‘Intelligent Home’.

IntelligentContextual awareness

Smart & ConnectedLighting, Thermostats, Cameras, Appliances

Email & Internet Connectivity beyond the homes’ boundaries

ComputerizationComputing power brought to our homes

ElectrificationDistribution of AC power to households

~1880s

~1970s

~1990s

~early 2010s

~mid 2010s

Intelligent

Smart & Connected


Thank you.

[email protected] | www.GfK.com | TEMAX.GfK.com

Smart Home: Crossing the Chasm - IFA Berlin · Crossing the Chasm from Smart to Intelligent We are...

Documents

Transcript of Smart Home: Crossing the Chasm - IFA Berlin · Crossing the Chasm from Smart to Intelligent We are...