1. The Australian IoT in the Home Market
Presented at
The Connected Home Conference
Sydney
24 Aug 2016

2. The Mega Trends universe that we track
Source: Frost & Sullivan

3. It is not just about the home!
Social Networking
Digital Identity Management (Biometrics)
Calendar and Event Planning
Media and Entertainment
Location- Based Services
Transportation: Mobility Apps, Journey Planning, Real-time Information, Automatic Fare Collection
Bring Your Own Device
Shopping & eRetail
Mobile
eGovernance
Car and Bike Rental and Leasing
Banking and Financial Services
eEducation
NFC and Mobile Payments
Unified Messaging
Enterprise Mobile Apps
Healthcare at
Home (Remote Monitoring)
Telepresence
Car eRetailing
Home Security
CITY
Apps for Car Wash, Valet Service
WORK
Computing and Connected Devices
Telematics
Home Automation
Digital Consumer Ecosystem
Parking Apps
Energy Management Home Entertainment
HOME
Usage-based Insurance
CAR
The next generation of solutions for connected living will be driven by the convergence of technology and suppliers across homes, cities, work, and cars.
Source: Frost & Sullivan

4. What will a smart home look like?
Source: Frost & Sullivan

5. Australian Consumer Interest in IoT in the Home Solutions
25.8%
25.6%
48.6%
Interested and aware of benefits of IoT in the Home solutions
Unaware of benefits of IoT in the Home solutions
Not interested in IoT in the Home solutions
Source: Frost & Sullivan

6. Australian Consumer Preference for Solutions
Australian Consumer Interest in DIY Smart Home Solutions
Source: Frost & Sullivan

7. Australian Consumer Ranking of IoT in the Home Security Applications
Source: Frost & Sullivan

8. 72.1% 27.9% Lighting, HVAC and power socket control
Australian Consumer Ranking of Smart Home Energy Management Applications
Lighting, HVAC and power socket control
72.1%
Display power consumption of electrical devices
27.9%
Source: Frost & Sullivan

9. Australian Consumer Preference for Installation of Smart Home Solutions
Source: Frost & Sullivan

10. Australian IoT in the Home – Other Demand Trends
Only 25% of consumers are aware of IoT in the Home Wireless Communication Protocols.
Communication
Of consumers that are aware of communication protocols used in smart home solutions, two-thirds prefer Wi-Fi.
High initial cost (84%) and high maintenance and management costs (72%) are the two biggest concerns for consumers.
Concerns
TEXT
Consumer investment preference for smart appliance highest for washing machine, refrigerator, dishwasher and oven.
Smart Appliances
Source: Frost & Sullivan

11. Growth in the Australian IoT in the Home Solutions Market
Source: Frost & Sullivan

12. So how is the industry responding?
Jan 2015: Google partners with Insteon to boost the range of compatible products
Nest can connect with and enable Nest to be controlled through an Insteon hub.
Feb 2014: Google
acquires 100% of
Nest labs Inc. for
$3.2 billion.
Aug 2014:
Samsung acquires
SmartThings for about $200 million.
Jan 2016:
Samsung
announces SmartThings compatibility with Smart TVs.
Oct 2015: Legrand announces it will partner with Google Nest and use its weave protocol for its products.
Nov 2014: Amazon launches Amazon Echo.
2014
2015
2016
Nov 2015: Intel launches a new IoT platform, Intel Quark and the Tiny House to demonstrate its smart offering
Jul 2014: Open Interconnect
Consortium is formed.
June 14 and Oct 14: Google Nest acquires Dropcam (cameras) and Revolv (smart hub hardware).
Jan 2016:
SmartThings announces a formal
partnership with
BMW.
Jun 2014: Microsoft partners with Insteon (leading home automation protocol participant).
Source: Frost & Sullivan

13. What business models will emerge?
IoT and Smart Buildings Value Chain, 2016
New Business Models, 2016
Bundled Service Model
Bilateral Service Model
Single Product Approach Model
BEMS, home automation, lighting control, thermostats, IP cameras, smart switches and plugs, etc. A
System/Device Suppliers
Technology/
Platform Providers
Cloud networking, Big Data Analytics, OS, ZigBee,
Wi-Fi, IGRS, KNX, Modbus B
Cable operators, communication providers C
Network Providers
BEMS: Building Energy Management Systems IGRS: Intelligent Grouping and Resource Sharing OS: Operating System
Source: Frost & Sullivan

14. What business models will emerge?
Sales of Smart Data
Freemium
Subscription
Pay-as-you-use
Pay-for-results
Transaction fee from the use
of the platform
Product as a service
One-time fee
Source: Frost & Sullivan

15. Who will realise the opportunities?
Connected Homes Market: Opportunities by Solution Provider Group, 2016
Solution
Provider
Impact
Opportunities in Connected Living in the Future
Telecom Operators
Solutions such as shared data plans, split billing, and reprogrammable SIMs could lead to significantly more attractive pricing models, as data sales would be restricted. Partnering with OEMs and service providers will be key.
Mobile Network
Operators
Key participants are amongst the most influential in the integration of connected products and services as the mobile and tablet is the central consumer use platform.
Utilities
Key participant group in home energy management through remote control devices and provision of data on energy consumption; will enable better understanding of billing through customer connections but slow to diversify
Software Providers
Key ability to commercialize connected applications and services, and make solutions more scalable and easily upgradable
Original Equipment Manufacturers
Track record in successful partnerships with service providers, and ability to offer converged products and smart innovations across multiple distribution channels
Application Developers
A decoupling of apps from phones may eventually become a reality as more content and services are shifted to being hosted on the cloud rather than on native apps.
Stable
Increasing
Source: Frost & Sullivan

16. Critical Success Factors
Customer Engagement
Beyond
low-hanging fruit
Leveraging Convergence

17. Over 250,000 Clients Worldwide Over 1,800 Analysts Worldwide
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