IOT TREND RESEARCH

THE EVOLUTION
OF CONSUMER IOT

Iot Trend Report

WHAT’S NEXT?

With SONAR Trend Platform Reply is able to quantify and rank trends based on comparable trend metrics and ensure sophisticated measurement. Discover more about Reply’s survey on Consumer IoT!

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what is consumer IoT?

The Consumer IoT refers to the billions of physical personal devices, such as smartphones,
wearables, fashion items and the growing number of smart home appliances, that are now
connected to the internet, collecting and sharing data.


what is the consumer IoT

Towards a truly connected world

The rise of connected devices in the future, will result in a demand for faster, cheaper and more secure hardware and software. More integrated solutions will be provided with the help of Artificial Intelligence, Cloud, Big Data and Blockchain.


27 billion devices have been
connected over IoT in 2017.
This number is expected to
increase to 125 billion by 2030 ...

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... which means 15 connected devices per person.

The IoT market was already a
$170 billion market by 2017.
It is expected to grow to around
$561 billion by 2022.

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What drives the IoT market

On the one hand, the IoT market is driven primarily by technological innovations. On the other hand, changes in the lifestyle of today's society are also driving developments in the IoT sector. There are seven main drivers.

DISCOVER DRIVERS
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    CHEAPER & BETTER HARDWARE

    Digitalisation and the smartphone revolution have led to evermore compact, low-cost processing power, in addition to cheaper but more sophisticated sensors and cameras as well as ubiquitous wireless connectivity.

  • ADVANCES IN ARTIFICIAL INTELLIGENCE

    Advances in machine and deep learning are propelling the development of intelligent self-learning systems. The expected gains due to automation and improved data-driven insights are immense and will further drive progress in this area as well as within IoT.

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    BETTER NETWORKS & CONNECTIVITY

    Bluetooth, 5G, LiFi, NB-IoT or LoRa are just a range of new evermore present network technologies promising better and more network coverage, in addition to longer range and more energy efficient connectivity.

  • THE RISE OF BIG DATA

    Decreasing costs for memory and storage solutions are enabling the collection of big data, as well as subsequent data analytics services.

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    DIGITAL & MOBILE LIFESTYLE

    Around 53% of the global population is connected to the internet, leveraging digital technologies many times daily to manage their lives. Today, 600 million people use voice-activated assistants once a week. As IoT devices are becoming cheaper, consumers are set to further experiment with and adopt all sorts for smart things.

  • SUSTAINABLE LIVING

    Increasing awareness for climate change and resource depletion call for more sustainable and efficient energy generation and management. This in turn leads to a need for advanced IoT solutions that save energy, electricity and costs.

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    CONVENIENCE & PERSONALISATION

    In today’s fast-paced world, people are looking for products and services that reduce friction, save time and ultimately lead to convenience and comfort gains. Being accustomed to personalised social media feeds, movie recommendations and product marketing, consumers are also expecting unique experiences and tailored products when it comes to physical products or living environments.

WHAT IS TRENDING IN THE CONSUMER IoT MARKET?

Here's an overview and illustration of the relevant trends around Consumer IoT, based on their appearance in trade media, mass media, patents and scientific publications.


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The arrow in the illustration above implies a typical trend development and a life cycle from a small and growing trend - which is discussed in relatively few scientific articles and publications - to a larger, established trend with stagnating growth, which has long been discussed in various media and has shifted from niche circles into the mainstream.

The future of personal IoT devices

The progress of Personal IoT devices by our longing for real-time support, constant entertainment and instant connection to everything. Moreover, integrated & intuitive personal IoT devices eliminate barriers between digital and physical, human and machine, acting as an interface to everything connected to the IoT, whether it is a human, a car, our home, or retail space. The trends experiencing the highest growth rates since 2016 are Digital Assistants, Smart Glasses and Augmented Body with the biggest players being Amazon, Apple, Google, Fitbit and Microsoft.

The number of Personal
IoT devices in 2017 was
around 5.2 billion.

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Today 600 milion
people worldwide use
voice-controlled
assistants once a week.

The global market for smart
fashion is expected to grow to
$2.9 billion by 2022.

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The future of home IoT devices

The home of the future will support our living standard and wellbeing with intelligent, interconnected technologies and task automation. Smart home products and services are on the rise, allowing us to easily adjust the ambience of our home, to lower our energy consumption, to take over annoying chores and to recognise individual wishes immediately thus leaving us with more time for the things we love. The trends experiencing the hightest growth rates in 2017/2018 for more comfort and convenience are Smart Sound, Hubs & Controllers as well as Home Robots with the biggest players being Google, Apple, Amazon, Roku TV and iRobot.

The global smart home market
reached a volume of $35.7 billion in 2017 and is expected to grow to $150.6 billion by 2023.

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Home robots are expected
to have a share of $11 billion
of the entire American
robotics market by 2020.

The global market for smart
home security is growing by
27% annually.

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NEW BUSINESS OPPORTUNITIES

We are already aware that things are becoming smarter around us, however, increasing smarter things are on the horizon.
And with every new smart thing comes a new business opportunity.

INTUITIVE PRODUCTS & SEAMLESS SERVICES

Successful IoT products will integrate seamlessly into our lives and our homes until we forget that they are there and that we once did these tasks manually. Opportunities arise from invisible hardware which works (together) autonomously, automatically adjusts settings or intuitively via voice control.

One innovative idea is the Fitness Tracker Plus, a combination of a fitness tracker, a smart home hub and a task-automation app: The Fitbit Fitness Tracker can be connected to a Smart Home Hub such as Wink to act as a personal sensor. In combination with the task-automation app IFTTT, your smart home can automatically make coffee, play music or start the shower when you wake up and lock the door once you leave the house.

MORE DATA
POINTS
& INSIGHTS

The IoT brings us a new market for solutions that store, merge, process and protect data from smart home devices and personal gadgets. Companies can nourish this emerging market with their data and use the insights gained from IoT products and services to better understand their customers and improve their business processes.

This is what Neura had in mind when creating an AI engine that turns IoT environments (home, personal, travel,...) into intelligent personal worlds. The engine connects to multiple data channels to provide a situational awareness. This allows the AI to get to know the habits and needs of its users in order to enable automated, seamless experiences.

NEW TOUCHPOINTS & VALUE CHAINS

The IoT promises to change the value chains of many industries once again. With smarter products, companies will be able to monitor and predict usage or buying behavior. This enables them to bypass intermediates and provide goods directly to the customer at the push of a button or by automatic ordering.

Like Amazon Echo Look, a new voice-controlled selfie camera that allows AI assistant Alexa to give you fashion tips and help you discover new clothes. The app uses a combination of machine learning and advice from fashion industry experts and helps Amazon to increase sales of its own fashion line.

SERVICE ECOSYSTEMS & TAILORED EXPERIENCES

To differentiate themselves in the growing consumer IoT market, suppliers must concentrate on the added value of smart solutions. In addition to collaboration between companies, personalised services are becoming more important. Both aspects increase the usability, perceived benefit and efficiency of an IoT product or service.

One example for this new business opportunity is Whirlpool's acquisition of Yummly to expand its food & curated cooking ecosystem. Consumers are now able to use Yummly and its image recognition app to discover recipes or order food and equipment. Afterwards, consumers can cook their meals using Whirlpool’s smart kitchen appliances.

SONAR

SONAR is an innovative, Data-as-a-Service Tool for quantified foresight. It recognises, compares and analyses existing trends, and identifies new developments in real-time.

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