Connected Living - Implications of a $730 Billion Market by 2020

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In the future, smart and connected objects will surround us; everyday objects and appliances will monitor their environment, report their status, receive instructions, and even take action based on the information they receive from our PCs, smartphones, and tablets. To understand the development and growth of the “connected living” market, Frost & Sullivan looks at the micro market level for the new products and services that are being taken up by consumers in the context of where we spend most of our time: at home, at work and out and about in the city.

The session will look into how telecom providers, software designers, system integrators, utilities and others are actively pursuing this market opportunity.


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Connected Living - Implications of a $730 Billion Market by 2020

  1. 1. Connected Living 2020 Future of Smart Homes, Virtual Work, and Connected Cities
  2. 2. Today’s Presenters 2 Archana Vidyasekar Team Lead & Senior Analyst Frost & Sullivan Olivia Walker Senior Consultant Frost & Sullivan Guest Speaker Holger Knöpke Vice President, Connected Home Deutsche Telekom
  3. 3. • Definition of Connected Living • Connected Living Market Potential • Future of Living: Smart Homes • Future of Work: Virtual, Mobile • Future of Cities: Smart + Connected • Strategic Recommendations 3 Agenda
  4. 4. 44 Source: Frost & Sullivan Connected Home Connected Work Connected City • Home Automation • Smart Meters and Smart Thermostats • Intelligent Lighting • Remote monitoring and control • Home health - Remote diagnostics; wearable health devices • Mobility - Mobile email, enterprise mobile apps, people locator, bring your own device, • Communication - unified messaging, remote desktop access, • Networking - Web-based project collaboration tools, cloud-based file sharing services • eGovernance • eCitizens • Smart transportationcards • E-learning • Mobile banking • Digital classroom, Remote education service, Digital library Connected Living Connected Living describes a world in which consumers use many different devices to experience compelling new services that integrate video, voice, and data services to provide access and ubiquitous connectivity anytime and anywhere. Definition of Connected Living Connected life contains three important aspects of connected home, connected city, and connected work
  5. 5. Lighting: Centralised control panels to control lighting around moods and preferences Energy: Pre-programmed temperature control connected to smart appliances sensitive to environmental considerations Security: Use of cameras and automated alarm triggers to manage security centrally HVAC: Control and measurement of air and circulation Health: Responsive and intelligent systems to monitor health and prevent illness or harm Entertainment: Bundled and demand services controlled centrally Vision of a Connected Home Future homes to feature centralized lighting and energy systems that are intelligent and can be managed and monitored remotely Connected home is defined as an residential environment embedded with computing and information technology which anticipates and responds to the needs of the occupants, working to promote their comfort, convenience, security and entertainment
  6. 6. 6 Connected Home Segments The connected home encompasses a variety of applications from multiple vertical sectors, including media, energy, healthcare, home automation, and security. Home Automation Alarms; Access Control Systems; Surveillance Systems; Door Contacts; Motion Sensors; Touch Screens; Keypads Home Energy Thermostats; Temperature Sensors; Humidity Sensors; Keypads Home Health Remote monitoring and control; Vital signs monitoring through sensors; Data gathering through mobile Home Entertainment Video streaming, smart TVs, online content, virtual TV commerce Connected Home Segments
  7. 7. 7 Case Examples: Google Nest, Alert Me Non-utility solutions focus on selling their services directly to the home customer and offer unique connected home services for energy management without relying on smart grids for connectivity AlertMe – Provides services through a cloud that connects to the home broadband router Nest Thermostat – Sensor-driven, Wi-Fi- enabled, analytical programmable thermostats Smart plugs that can be plugged into any socket work as the connecting node of devices to hub. The smart plugs wirelessly (Zigbee) transmits data about energy use in the socket to the AlertMe Hub AlertMe Hub connects to the cloud through home broadband and relay information through the cloud on home energy consumption The smart thermostat intelligently monitors and alerts the user is saving both energy and money at that specific temperature It wirelessly (Wi-fi) connects to the appliances and mobile broadband to smartphones allowing users to remotely track, monitor and control their smart thermostats remotely or while in their homes.
  8. 8. Vision of Connected Workplace: The Essential Features Mobile Working Enterprise Communication Enterprise Social Networking Wireless Mobile Email Enterprise Mobile Apps People Locator Human Resource Apps Bring your own device (BYOD) Web-based project collaboration tool Mobile-based virtual outsourcing Social Media Feeds: Facebook, LinkedIn etc. Cloud-based syncing and sharing services Telepresence Unified messaging Remote Desktop Access Virtual Private Network Audio, web, and video conferencing tools Source: Frost & Sullivan analysis. Typical Connected Work Services and Solutions by Key Segment A B C
  9. 9. 9 Digital Assistant Notifications, alarms, and automated intelligent planners that can be trained to schedule activities on their own Human Resource Apps Leave requests, corporate metrics, and other HR processes on-the-go, including additional services such as location based notifications Real-time Integrator Improves collaboration and knowledge sharing across different departments and locations Real-time networking Increased responsiveness and access to clients and better productivity with quicker access to experts and information. People Locator Enables field staff to be directed to new jobs without returning to the central location for receiving new work orders. Global Mailbox Unified access to all priority mail accounts avoiding the need for multiple accounts. Examples of Mobile Working Solutions Source: Frost & Sullivan Mobile Working Connected Work: Mobile Working Digital Natives are demanding for mobile working solutions that make collaboration and remote working seamless and interactive
  10. 10. 10 Mobile Window Display Of A Connected Worker
  11. 11. 11 Networking Services Real-time Communication Connectivity Security Virtualization Transport • Video Phone • Telepresence System • Video Conferencing Services • Active Collaboration Room • Location Based Services • Wired and Wireless Access Points • High speed broadband • IP Cameras • Network DVRs • Storage • Web Proxy • Desktop Virtualization • Unified Computing Systems • Switching • Routing • Transcoding • Multicast • IPv6 Physical Infrastructure Work Space Meeting Rooms Banking Service Parking Infrastructure Crèches & Catering Service Stakeholders Municipality Hospitality Cisco Real- estate Urban development consortiums National Broadband Provider A B C Components of Network of Cisco Smart Work Centers Benefits of SWCs New Model of working: self- regulation, collaboration, co-working Optimizing space: shared services increases efficiency. Almost 40% reduction is office space required per employee Reduced Carbon Emissions: 41% reduction in greenhouse gas emissions from use of natural gas and electricity Reduced Costs: Average old fashioned work space costs $7,000 to $16,000 per year per employee. SWC subscription, all-in: 200 USD per month Smart Work Centers (SWCs) are integrated public facilities that blend digital and virtual business with personal amenities with a mandate to use less space and spend less money. Case Study: Cisco Smart Work Center
  12. 12. 12 Banking • Mobile Payments • Kiosk service • Online Banking • Online Stock Trading Governance • E-services • E-Administration • E-Security Transportation • Smart Transportation Cards • Car infotainment services • Mobile traffic services • Telematics services Education • Digital classroom • Remote education service • Digital library Typical Connected Work Services and Solutions by Key Segment A B C D Vision of a Connected City Digizens of the future will interact with city-wide “connected systems” offering anytime, anywhere services in key public areas such as banking, education, and transportation
  13. 13. Source: Frost & Sullivan analysis.Source: Frost & Sullivan analysis. Modules and component providers Device Vendors Network Providers Platform providers Systems Integrators Three Types of Connected Living Service Providers (Bundled Solutions) 1 2 3 4 5 SIM cards, sensors, Transponders E.g. Sendum, Gemalto Mobile device, appliance, utility, cars E.g. Samsung, Apple Applications, software, enabling technologies E.g. SAP, Oracle Interfaces, back- end, value-added services E.g. IBM, Accenture Integrators: Platform Providers and Systems Integrators Assimilators: Device Vendors and Utilities Aggregators: Network Providers Network, M2M, Wireless, Analytics E.g. Telefonica, AT&T, Cisco End User Connected Living, Value Chain Participants and Process Connected Living: Value Chain of Smart Solutions Extremely fragmented value-chain with no clear “one-stop-shop” solution provider offering end-to-end solutions.
  14. 14. 14 An intelligent cloud-based service connecting interoperable devices and services providing a common view of solutions for the end-user Example: the IBM Smart Cloud is being trialled and tested to offer remote monitoring and control of all home appliances irrespective of device type / make Manufacturers of smart products who assimilate their solutions with new layers of functionalities to existing standards of connectivity to offer connected solutions. Example: Intelligent thermostats like those commercialised by Nest and Tado Through M2M connectivity and network connectivity, these providers aggregate various solutions and offer as connected living solutions on a unified platforms to users covering all aspects including hardware, installation, and maintenance Example: AT&T Digital Life offers a built-in wireless home networking platform covering lighting, security, automation, and energy Integrator Assimilators Aggregators Source: Frost & Sullivan analysis. Connected Living: Types of Service Providers First movers in the connected home market are taking one of three approaches, a single purpose solution, a partnership alliance or a broad platform based offer
  15. 15. 15 Examples of Service Providers Philips Hue (Launched) – Assimilator Approach QIVICON (Launched)– Aggregator Approach Microsoft HomeOS (Planned)– Integrator Approach
  16. 16. 16 Source: Frost & Sullivan Strategic Recommendations Ways to Capture and Create Value from Connected Living Market Opportunity Build a platform, not just a service Converge with Competition Product-as-a-service Source and Support Ideas through Open Innovation Offer integrated solutions and central intelligence to manage and filter the flow of information between hundreds of sensors, appliances and objects –an operating system like iOS for human life. Shift from offering traditional products and services to product as a service where products are bundled, made more functional and networked and possibly open-sourced. Convergence implies a cooperative business approach that brings clients and providers together for joint growth. Re-assess the value chain of customers, suppliers and competitors to now look for “complementors” to leverage the benefits of Co-opetition. Open-source technology and share data to add more functionalities and services to the product which makes it automatically update and evolve without much effort from original OEMs.
  17. 17. Contact Information Archana Amarnath Program Manager, Visionary Innovation Research Group (+44) 2079157893 aamarnath@frost.com 17 Sarwant Singh Partner & Practice Director, Visionary Innovation Research Group and Automotive & Transportation (+44) 2079157843 sarwant.singh@frost.com Archana Vidyasekar Team Lead and Senior Analyst , Visionary Innovation Research Group +91- (0) 80 67028070 archanav@frost.com Olivia Walker Senior Consultant, Visionary Innovation Research Group (+44) 2073438394 Olivia.price-walker@frost.com

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