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HOME GOODS AND THE INTERNET OF THINGS:

THE REAL VALUE OF THE SMART HOME INDUSTRY


PAVEL MARCEUX TECHNOLOGY, COMMUNICATIONS MEDIA SPECIALIST
LOO WEE TECK HEAD OF CONSUMER ELECTRONICS

04/11/15 WEBINAR

SMART WORLD
SMARTPHONE
SMART HOME
SMART CAR
OPPORTUNITIES

SMART WORLD

The Internet of Things (IoT) is driving a smart world

Source: Image from IEEE


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SMART WORLD

An increasingly connected home environment in 2015

2,000m
Homes

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3,000m
Internet users

SMART WORLD

Connected devices in 2020: Opening up new smart markets

166m

1,644m

Desktops and laptops

Smartphones

186m
225m 305m
Tablets
Source: Euromonitor International
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Wearables

Smart TVs

SMART WORLD
SMARTPHONE
SMART HOME
SMART CAR
OPPORTUNITIES

SMARTPHONE

The smartphone is the catalyst and spearhead of smart segments

Smart apps for home and car

Remote control over appliances

Internet device, especially in emerging markets

Offers a blueprint for future smart devices

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SMARTPHONE

The smartphone substitution effect enables stronger connectivity links


Sales of Mobile Phones: 2010-2015
1,400

Retail volume (m)

1,200
1,000
800
600
400
200
0
2010

2011

2012

Smartphones
Source: Euromonitor International
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2013
Feature Phones

2014

2015

SMARTPHONE

There are already more mobile subscriptions than people

Internet Users
3.6 billion in 2020

Population
7.7 billion in 2020

Mobile
Subscriptions
8.6 billion in 2020
(50% will be Internet-enabled)
Source: Euromonitor International
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SMARTPHONE

Consumers from emerging markets more receptive to m-commerce


Top Countries for Mobile Purchases: 2014
China
India
Turkey
Indonesia
Colombia
Spain
USA
Japan
France
0

10

20

30
40
% of respondents

Source: Euromonitor International Hyperconnectivity Survey 2014


Note: Percentage of global respondents who indicated they use their mobile phones to make purchases
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50

60

SMARTPHONE

The smart app marketplace is already highly competitive

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SMART WORLD
SMARTPHONE
SMART HOME
SMART CAR
OPPORTUNITIES

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SMART HOME

Global household possession of appliances by 2020

79%
Refrigerators

40%
Air-conditioners

47%
Vacuum Cleaners

69%
Washing Machines

45%
Microwave Ovens

Source: Euromonitor International


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SMART HOME

Smart products in the connected home


Willing to pay

10%
more for connected functionality
LED Lamps in 2015

US$5.7b
94% growth in 2019

Robotic vacuum cleaners in 2015

US$1.8b
50% growth in 2019
Source: Euromonitor International
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SMART HOME

However, challenges have hindered the market for years


The technology is not yet matching the expectations

Consumers are showing signs of smart home fatigue

There is a lack of a single leading product line or format

It is for developed markets or wealthy emerging market consumers

Digitalising your home opens it up to potential cyber-security risks

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SMART WORLD
SMARTPHONE
SMART HOME
SMART CAR
OPPORTUNITIES

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SMART CAR

Connected car as a differentiator

100m

light vehicle sales in 2019

Growth of low-cost models (mini and


small cars) stagnating
Car ownership declining for citydwellers
Manufacturers introduce higher end
models that are well equipped.
Connectivity to increase the perceived
value

Source: Euromonitor International


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SMART CAR

Interest in smart(er) car, not just connected


Connected Car Survey: 2015
Extremely interested
Very interested
Somewhat interested

Respondents who are interested


Identifies traffic
situation and provides
alternatives
GPS assistance

Not at all interested


System diagnosis

Respondents not at all interested


Do not see a need

44%

Do not plan on buying a car

40%

Concerned about privacy

24%

Concerned being distracted

24%

Concerned it will be expensive

18%

Source: Euromonitor International Analyst survey 2015


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Point-of-interest (POI)

Mobile hotspots

Web-browsing

19

SMART CAR

Autonomous cars - the ultimate smart car

EUR2.8b
for HERE maps

Develop precise and accurate maps and


services and self-driving cars

1.2m

miles driven (September 2015)


after six years of testing
Source: Nokia and Google Inc
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SMART CAR

Nissans initiative for the share natives


A better way to connect
with friends and share
experiences
A giant mobile battery

Canvas for individual expression


Voice control and motion sensors

Source: Nissan Motor Co.


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SMART CAR

Automotive market slow to adopt disruptive digital trends

Long development cycle

Partnerships with tech firms can be complex

Legal obstacles

Cars focus on performance, not entertainment

Resistance to change

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SMART WORLD
SMARTPHONE
SMART HOME
SMART CAR
OPPORTUNITIES

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OPPORTUNITIES

The smart home is forward thinking but yet, offers immediate returns
Energy
Lighting
Appliances
Thermal management

Health
Health data
Exercise
Medication

Automation
Car startup
Gardening
Doors and windows

Maintenance
Diagnostics
Repair and servicing

Security
Intruder alarm
Pets monitoring
Child/elderly monitoring

Infotainment
Local shopping and delivery
Multi-screen display

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OPPORTUNITIES

But major challenges lie ahead to achieve mainstream use


Mobile subscriptions that
are broadband-enabled

Lack of a leading smart home brand to


drive interoperability

38%
globally in 2015

Difficult to communicate the value


proposition
Less than

Cars are not ideal for smart cycle

50%

Global broadband access is weak

Home with broadband


PCs in 2015

Source: Euromonitor International


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OPPORTUNITIES

The smart home has its rewards for companies who dare to venture
Connected Devices

US$699b

Major Appliances (2019)

US$258b

OTC (Health)

US$129b

Vitamins and Dietary Suppl


Fresh Milk
LED Lamps

US$105b
US$86b
US$11b

US$3,466

Household expenditure on water, electricity,


fuel, and others services in developed markets
Source: Euromonitor International / United States Department of Agriculture
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US$1,500
Food wastage per household in
the USA

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OPPORTUNITIES

Is the world ready to be smart?

.most definitely

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THANK YOU FOR LISTENING


Pavel Marceux - Technology, Communications Media Specialist
pavel.marceux@euromonitor.com
Loo Wee Teck - Head of Consumer Electronics
weeteck.loo@euromonitor.com.sg

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