China's smart home market will exceed 25 billion US dollars

Jimi loTJimi loT2019-01-16

In recent years, keywords such as Artificial Intelligence, Internet of Things, Big Data, and Cloud Computing,are constantly impacting our lives, so we are catching up to talk about "the future has come." With the rapid development of IoT and artificial intelligence technology, smart home products are gradually favored and recognized by the public. You can always know the situation at home when you are outsides. You don't have to worry about a thief breaks into your house. When you are lazily lying on your bed, you can close the window, the light and can even do more without moving. The opening of home intelligence era truly depicts the way life in the future.
The growing and prosperous smart home industry has made more and more families enjoy smart lives. A variety of products have attracted our attention. From smart home appliances to small phones and smart watches, all of these can be remotely controlled by networking technology. At what stage is the development of smart home? What role does telecom operators play in this industry?
Now, let’s listen what Michael Philpott, the chief analyst of Owum says.

Smart home market is growing day by day
Smart home combines technologies such as the Internet, computing, network communications, sensing and control, and is considered the next blue sea market. Michael Philpott thinks the smart home market is still at the primary stage of the current overall market. Not yet mature, but it is beyond reproach that smart home is the fastest growing market in China and even the world. It is estimated that China’s smart homes in 2022 may exceed 25 billion US dollars, accounting for 25% of the global market share.The scope of smart home is not limited to home entertainment and home control (such as switches, lighting, temperature and humidity control, etc.). In the distant future, traditional industries such as energy, medical care, security, and education will also be closely integrated with home applications. There are three areas in which Philpott estimates are promising.
The first is the security field. Any intelligent home environment is based on an intelligent security system, which requires that the alarm will be triggered immediately when various emergencies happen. Fireproof smoke alarm, anti-theft smart door lock, surveillance camera are all successful security system products.
The second is home automation. Home automation refers to use micro-processing electronics to integrate and control electronic and electrical products or systems in the home, such as lighting, coffee, computer equipment, security systems, heating and air-conditioning systems, video and audio system, etc. Turn electronic and electrical products into a universal remote control unit, and the home equipment can be freely controlled.
The third is smart speakers, such as Aexa by Amazon, and Siri by Apple, which are actually classified as intelligent voice technology products. The core is brief, that it makes the machine has a voice dialogue ability like a man. The smart speaker has become popular like a normal small household appliance and infiltrates into people's daily life. What a successful smart home product!
Suggestions on smart home business for telecom operators
Smart home business has to combine with network channels inevitably, and telecom operators have high-quality communication channels that connect thousands of households through broadband networks, and thus have the unique advantage of developing smart home business. Michael Philpott believes that smart home brings two changes to operators. On the one hand, the traditional business of operators is growing slowly, but the rapid development of smart home can become the new revenue growth point for operators. On the other hand, it is also a big hit on operator’s core business. For example, he says that IPTV provides a good guarantee for the core business of operators.
Based on this advantage, telecom operators still need to further explore the suitable method for their own smart home business development. In this respect, Michael Philpott puts forward three suggestions. Firstly, understand the needs from customers and take the advantages as the operators to produce products. Secondly, the product’s selling point. It should be good enough to attract the users. Thirdly, make a clear marketing plan. Usage scenarios are more important than the product itself.
Safety and standard issues need to be resolved
At present, the connection and interaction of smart home are constantly evolving. In addition to voice, there are various interaction methods such as fingerprints, irises, and movements, but there is no unified regulation on security and standards.
In terms of security, Michael Philpott says that hardware equipment manufacturers should take responsibility for the product safety. For example, operators could make networked devices safe through built-in security systems. At present, the quality of products on the market is uneven, some are good while some are bad, but in the long run, consumers will choose the products that perform excellently in terms of safety.
As operators, the built-in firewall can be used to solve the security problem, and further provide security and safety protection.
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