Internet of Things for the Smart Home
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1 Internet of Things for the Smart Home Angela Tumino Director of the Internet of Things Observatory 19 th April 2016
2 Internet of Things for the Smart Home 2015: a year full of news! The number of competitors keeps growing: new global players, insurance companies, startups CES 2016: Smart Home at the spotlight! 2016: Smart Home enters the Retailers stores The hubs are at the centre of Smart Home ecosystems 19 th April
3 Internet of Things for the Smart Home How to match supply and demand Online Survey, conducted in collaboration with Doxa, home owners Analysis of 220 IoT Smart Home solutions sold in Italy or abroad DEMAND SUPPLY Traditional supply chain (technicians*, architects**) eretailers Insurance companies Retailers CHANNELS * 2 focus groups, in collaboration with TechnoConsumer ** Survey Osservatorio, 530 respondents 19 th April
4 Smart Home: the consumer perspective Good knowledge Have you ever heard about Smart Home? No 32% Yes 68% People who heard about Smart Home are mainly : Men (74% vs 63% women) Younger than 55 (70% vs 59% people older than 55) Survey in collaboration with Doxa, December 2015 Sample: 1006 respondents 19 th April
5 Smart Home: the consumer perspective Good knowledge thanks to the Internet and Retailers Have you ever heard about Smart Home? Internet No 32% Yes 68% 41% 21% Large Retailers Friends Showrooms Survey in collaboration with Doxa, December 2015 Sample: 1006 respondents 18% 9% 8% 3% Technicians (e.g. electricians, plumbers) Other (e.g. TV) 19 th April
6 Smart Home: the consumer perspective Security is still the prevalent area Do you have at least one smart object in your home? The main application is security (45%), with solutions requiring the intervention of technicians Yes 48% 20% 32% No, but I had the opportunity to see them in other houses No, and I have never seen them Security Heating Air conditioning Energy consumption monitoring Entertainment Detection of smoke and flooding Appliances management Lighting Monitoring of environmental parameters Curtains/shutters management Safety Other 19% 13% 13% 13% 10% 10% 9% 9% 7% 4% 3% 45% Survey in collaboration with Doxa, December 2015 Sample: 1006 respondents 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Survey in collaboration with Doxa, December 2015 Sample: 202 respondents 19 th April
7 Consumer profiles Tech Dummies, Mobile Surfers, Tech Friends TECH DUMMIES MOBILE SURFERS TECH FRIENDS Familiarity with technology Low Medium Medium - High Age Older than Younger than 35 Knowledge of Smart Home Medium-Low (45%) Medium - High (60%) High (75%) Main needs Energy efficiency Security Security Comfort Comfort Energy efficiency Willingness to buy Medium (55%) High (74%) High (84%) Channel Technicians and Retailers Technicians and Retailers Online, Retailers and Insurance companies 19 th April
8 Consumer needs Priorities: comfort, energy efficiency, security Why did you buy (or would you buy) smart objects for your home? Comfort Energy efficiency 54% 52% Before going out they often forget to Turn the light off 30% Security Assistance for breakdowns Appliances management Home integrity 30% 28% 25% 50% Close the windows 22% Regulate the thermostat Safety 22% 15% Home salubrity 10% Lock the door Other 1% 14% 0% 10% 20% 30% 40% 50% 60% Survey in collaboration with Doxa, December 2015 Sample: 1006 respondents 19 th April
9 Consumer needs Priorities: comfort, energy efficiency, security Why did you buy (or would you buy) smart objects for your home? Clusters Comfort Energy efficiency Security 52% 50% 54% Tech Dummies En. efficiency Security Assistance for breakdowns 30% Mobile Surfers Appliances management Home integrity 28% 25% Security Comfort Safety Home salubrity Other 1% 10% 22% Tech Friends Comfort En. efficiency 0% 10% 20% 30% 40% 50% 60% Survey in collaboration with Doxa, December 2015 Sample: 1006 respondents 19 th April
10 The future purchases Traditional solutions prevail with some exceptions! Are you going to buy smart objects for your home in the future? 79% of respondents is going to buy a smart object (20% within the next 12 months, 59% within the next years) Clusters Sample: respondents Intrusion sensor 44% Tech Dummies Budget: 0 1,000 Less willing to purchase (55% vs 79%) Camera 39% Thermostat Connected appliances 33% 32% Mobile Surfers Budget: 500-2,000 Air conditioner 28% Electrical short circuit sensor 21% Survey in collaboration with Doxa, -3% December 2% 7% % 17% 22% 27% 32% 37% 42% Sample: 795 respondents Tech Friends Budget : 1,000-5, th April
11 Purchase and installation Purchase on their own, need support for installation How would you like to buy and install your smart objects? Autonomous purchase, installation with a technician: Purchase and installation in complete autonomy: 30% Fire sensor Appliances Multimedia system 45% 25% Intrusion sensor Purchase and installation with a technician: Gate and garage door Light bulb Flood sensor Thermostat Survey in collaboration with Doxa, December 2015 Sample: 795 respondents Camera 19 th April
12 Purchase and installation Purchase on their own, need support for installation How would you like to buy and install your smart objects? Autonomous purchase, installation with a technician: Purchase and installation in complete autonomy: 30% Fire sensor Appliances Multimedia system Tech Dummies and Mobile Surfers trust technicians more! Light bulbs 45% +8% 25% Flood sensor Intrusion sensor Purchase and installation with a technician: Thermostat Gate and garage door Survey in collaboration with Doxa, December 2015 Sample: 795 respondents Cameras 19 th April
13 New services demand for the Smart Home Costumer s interest increases Would you be interested in additional home services, using information collected by smart objects? Costumers interested in Smart Home services continue to Sample: respondents increase (72% in 2015 vs. 59% in 2014) 24h/24 Assistance Energy consumption monitoring 36% 36% Clusters Tech Dummies Consumption monitoring Home insurance Private surveillance 21% 35% Mobile Surfers Consumption monitoring and assistance Health insurance 16% Home routine management 10% Survey in collaboration with Doxa, December -3% 2% 7% % 17% 22% 27% 32% 37% 42% Sample: 722 respondents Tech friends Home insurance and assistance 19 th April
14 Internet of Things for the Smart Home How to match supply and demand Analysis of more than 150 IoT solutions (products and services) for the Smart Home sold in Italy or abroad DEMAND SUPPLY Traditional supply chain (technicians*, architects**) eretailers Insurance companies Retailers CHANNELS * 2 focus groups, in collaboration with TechnoConsumer ** Survey Osservatorio, 530 respondents 19 th April
15 The Smart Home supply chain The main sale channels Wholesaler Technician Manufacturer Insurance company Technician / Help Center Final customer Traditional Retailer eretailer Offline Online 19 th April
16 The Smart Home supply chain The main sale channels: wholesalers and technicians Wholesaler Technician Manufacturer Insurance company Technician / Help Center Final customer Traditional Retailer eretailer Offline Online 19 th April
17 Smart Home: the channels The traditional supply chain "knows that it knows nothing" "I am not interested in Smart Home, I am not going to change my habits" "I am interested in Smart Home, I think it is essential for my future business" Interest Knowledge Architect Technician "My work is done as soon as I deliver the system" "I have never worked on this kind of projects, I need more training" 19 th April
18 The Architects Smart Home is an opportunity to seize! 84% of the architects thinks Smart Home is an opportunity, but 97% reveals the need of additional training Who do you wish to be trained by? Sample: 271 Italian architects Manufacturing companies 39,7% Professional associations 32,6% Other architects 11,4% Scientific/Training centres 9,6% Sample: 264 italian architects Internet 6,7% 0% 19 th April 10% % 30% 40% 50% 18
19 The Smart Home Supply Chain The main sale channel: insurance companies Wholesaler Technician Manufacturer Insurance company Technician / Help Center Final customer Traditional Retailer eretailer Offline Online 19 th April
20 Insurance companies An underinsured market with high potential In Italy, only 25% of home owners protect their house through a policy, although 80% of the italian territory is at risk of calamities Source: Dossier Assicurazioni, Generali, % has already faced an emergency for the hydraulic system 27% has already faced an emergency for the electric system 18% has already faced an emergency for the gas system Sourcee: Study by Gfk e Assistenza Casa, th April
21 Smart Home: the channels Insurance companies get "smart" In 2014, only 2 insurance companies offered policies based on Smart Home solutions. In 2015, they are 5! Control unit + sensors Home insurance policy Service but there is still much to work on! Big players are still missing in the market Best international practices: Objects already present in the house are used (e.g. Nest + State Farm) 9 foreign insurance companies offer wellness programs, with discounts on products, services or prices of the health insurance policy (e.g. John Hancock) 19 th April
22 The Smart Home supply chain The main sale channels: Retailers and eretailers Wholesaler Technician Manufacturer Insurance company Technician / Help Center Final customer Traditional Retailer eretailer Offline Online 19 th April
23 The online channel Increasingly pervasive, especially thanks to eretailers 89% of products available online (Sample: 220 products) eretailers offer almost the whole product range Traditional Retailers have a narrow online selection (~20%), mainly focussed on security (57%), smoke and flood detection (17%) and lighting (8%) The online presence of manufacturers is currently limited 19 th April
24 The role of traditional Retailers Will 2016 be a turning point? Investments in advertising and exhibition areas Role of showrooms : customers and Smart Home products will "get in touch" more often Online sales in the consumer electronics industry* = 13% 19 th April *Source: ecommerce B2c Observatory, 2015
25 Smart Home From products, to services, to data value Costumers interested in Smart Home services continue increasing (72% in 2015 vs. 59% in 2014) Surveillance services Implicit value Consumptions forecast Intrusion sensors already installed in the home send information to specialised enterprises Utilities sell data to energy producers for the forecast of demand peaks Internal enhancement External enhancement Home insurances Smart Home insurance kit in order to offer new services and reduce policy costs Explicit value Hub to centralize data The hub picks up data from the sensors and sells them to external enterprises in an aggregated form 19 th April
26 Internet of Things for the Smart Home Conclusions Who are the target customers? Different features and preferences for different channels 19 th April
27 Internet of Things for the Smart Home Conclusions Who are the target customers? "Traditional" channels need to evolve! Architects are interested and, potentially, represent the right channel to innovate, but they are not much involved in the process; technicians are not mature but necessary (for certain applications) Customers, architects and technicians all claim that complexity and price are the main barriers. Are they maybe letting the father s (Domotics) faults fall on the child (IoT)? Aren t we supposed to talk about Value? 19 th April
28 Internet of Things for the Smart Home Conclusions Who are the target customers? "Traditional" channels need to evolve! 79% of respondents is willing to buy a smart object in the future Potential demand is there. What about the supply? Tech Friends are ready! Retailers, e-commerce, insurance companies: what will be the channels in the future? 19 th April
29 THANK YOU! Internet of Things for the Smart Home Angela Tumino Director of the Internet of Things Observatory 19 th April 2016
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