Smart Home: a Global Perspective Towards the Smart(Er) Home

Home , Smart refrigerator

Smart home: a global perspective Towards the smart(er) home

7,000+ Consumers Representative of online audience in each country

Online Interviewing Via smartphones, tablets, laptops and PCs

Influentials recommend/ 17% influence Leading Edge Consumers

Connected Controlled via devices and a mobile device home automa- or remotely tion services through the cloud

55% Mobile Payments 74%

50% Smart home technology 78%

41% 3D Printing 62%

35% Wearable Technology 63%

33% Driverless cars/Autonomous driving 51%

29% The Internet of Things 50%

26% Connected Car 52%

24% Virtual/Augmented Reality 46%

24% Smart Cities 48%

Brazil 51% South Korea 47%

US 43%

UK 19% Germany

Japan © GfK January 19, 2016 | Smart home: a global perspective 9 Not at all appealing Extremely 16% 15% appealing Not very appealing 7% China 91% 25% Very appealing Brazil 89% 38% South Korea Fairly 86% appealing US 75%

Appeal Germany 72% of smart % 78 UK 66% home of consumers agreed that “smart home” was concept an extremely, very appealing or fairly appealing concept Japan 59%

Base: C02. How appealing is smart home technology to you? Base: All markets= 7149 © GfK January 19, 2016 | Smart home: a global perspective 10 Not at all Not at all appealing appealing 5% Extremely appealing 6% Not very 12% 19% 14% appealing 16% Not very appealing

Very appealing 27% 36% 28% 36%

Fairly appealing

Millennials Generation X (16 – 34) (35 – 54)

Smart home appeal: Influence of life stage

“Know 16% a lot” Brazil 26%

China 25%

US 22%

UK 11% of consumers say they know “a lot about the smart home” South Korea 11%

Germany 9%

Japan 7%

think of when “Devices that you wear and thinking of connect to other machines and monitor things like “smart home”? your pulse and BP.” (UK)

“Energy devices; lighting; “Apps control the “Light bulbs that turn “I think of heating “Synchronising socketed appliances.” heating, lights.” on with your phone.” and air conditioning.” multiple TVs.” (UK) (DE) (US) (US) (KO)

“Including smart appliance “Refrigerators “TV, computer, telephone, “Smoke detectors, locks, “‘Watches, fitness control, intelligent lighting monitoring stock ... refrigerator, stove, washer, garage doors, windows, trackers.” control, electric curtain that can independently dryer, microwave, DVD, lighting.” (UK) control, anti-theft alarm, shop for items themselves” cable television, air (US) access control intercom, (DE) conditioner, Automotive, gas leaks and other.” radios, doors, fan” (CN) (BR)

Base: C18. What products, devices or services do you think of when thinking of “smart home”? [Open end] Base: All who know at least a little about the smart home term © GfK January 19, 2016 | Smart home: a global perspective 14 Would not trust any company Electronics Manufacturer

12% 19% Other 5% Financial Service Company 5% Multiplicity of vendors 12% Multinational Tech Company Mobile Phone Network 8% trusted to deliver smart home 8% Telecoms Provider 12% High Street Retailer/ 10% In street (US) 10%

Online Retailer Utility Company

Consumers own at Of LECs own at least one smart home least one smart home 27% product or device product or device 52%

© GfK January 19, 2016 | Smart home: a global perspective 16 Smart TV 25% Routers 24% Settop box 10% Blood pressure monitor 10% W-LAN sticks 8% Repeaters 7% Fitness and activity tracker 7% Smart air conditioner 7% Alarm system 7% Streaming multi room audio 7% Smart washing machine 6% Robot vacuum cleaner 6% Smart refrigerator 6% Home Plugs 6% The long Smart detectors 6% IP camera (for security) 6% tail of smart Smart thermostat 5% Smart coffee maker 5% home product Smart lighting (smart lamps) 5% Motion sensors 5% Smoke alarm & air quality sensor 5% ownership Smart kettle 5% Smart meter (energy meter) 4% Access control (digital keys) 4% Smart Tuner/Amplifier 4% Smart light control 4% Smart blinds or shutters 4% Smart Doorbell 4% Smart control radiator 3% Energy manager 3% Baby monitors 3% Boiler monitor 3% Medication monitor/reminder 3% Disease activity monitor 2%

D02. Do you currently use or are you interested in using any of the following smart home products or services within your household? Base: All markets= 7149. © GfK January 19, 2016 | Smart home: a global perspective 17 31% Netflix % Amazon Prime use a Smart TV Use smart TV functionality 36 Sky Go “At least daily” or Video “Several times a day” streaming (Smart TV owners) Spotify Pandora 34% Google Play Music streaming

Ownership Box Drive, and usage Dropbox OneDrive 27% Google iCloud of Smart TV Cloud storage services

Xbox Live Most consumers are 25% PlayStation Plus paying for at least one Games subscription, with focus on entertainment

Smart appliances

Extremely appealing Very appealing Appeal of smart home category

53% Security & Control 82%

50% Smart Energy & Lighting 80%

47% Smart Entertainment & Connectivity 81%

44% Smart Health 67%

43% Smart Appliances 75%

© GfK January 19, 2016 | Smart home: a global perspective 20 Interested in purchasing 58% of consumers claim they will purchase a Validated smart home product in intention the next two years to purchase 14% of consumers claim they will purchase a smart home product in the next two years A validated

prediction Note: Smart home product as defined on slide 28 (excluding Smart TVs, health and connectivity devices such as routers) © GfK January 19, 2016 | Smart home: a global perspective 21 33%

24% Cost to purchase

23% Concerns personal privacy

Key barriers Knowledge of products 19% for adoption

Concerns about security in my home

© GfK January 19, 2016 | Smart home: a global perspective 22 … and it’s even higher amongst those already owning a smart device 66% of consumers expect 78% devices made by diff vendors to be able to communicate with each other

Global consumers agree “If a new technology product is not simple to use, I lose interest” up 8 pts from 2010

Source: Roper Reports Worldwide 2014 and 2010 (mixed mode trend, core 20 countries) © GfK January 19, 2016 | Smart home: a global perspective 24 Important to get it right from the start … consumers have high expectations

© GfK January 19, 2016 | Smart home: a global perspective 25 1 2 3 Creating a hub for Creating AI that Creating simple all things to work makes the device solutions that are together really “Smart” incredibly easy for seamlessly consumers

Slowly we’re seeing brands begin to “get it right”

© GfK January 19, 2016 | Smart home: a global perspective 26 Find out more about our global smart home study Contact us: @ and detailed market reports: Kevin Taylor http://www.gfk.com/insights/report/making-the-smart-home-a-reality/ [email protected]

© GfK January 19, 2016 | Smart home: a global perspective 27 About GfK GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions. More than 13,000 market research experts combine their passion with GfK’s long-standing data science experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100 countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its clients to improve their competitive edge and enrich consumers’ experiences and choices.