We all are surrounded with uncountable gadgets and electronics goods. More than controlling these gadgets, we are getting more and more controlled by gadgets rather than otherwise. With the high speed of life it is required to control all goods, whether consumer electronics, gadgets or home automation systems, all are required to be controlled and that from a same platform. Here comes the cloud and IoT. Now you can connect your TV, refrigerator, lighting security and gadgets to an android in your pocket and can monitor and control your home from a foreign trip instead. In short role of IoT have make consumer electronics “A smart Controlled consumer electronics”.
The term “Internet of Things” stands for smart interconnection between devices through internet technologies. The technology of Internet of Things (IoT) enables smart interconnection among devices through the Internet. Presently, the IoT is flourishing in home electronics, from entertainment to smart home control. Homes around the world are going to become smarter and more connected over the next five years. Overall, a fair number of mainstream consumers still don’t fully understand what connected-home devices are and how they work. However, adoption and awareness is still high for such a new category. The impact of IoT technologies to application worlds formerly oriented at proprietary industry standards. Increasingly, smart TV sets, washing machines and home appliances are adopting IoT approaches and get networked. IoT devices are enabled to sense and transmit information online, offering consumers’ greater information and influence over their environment. Previously unconnected objects can now be accessed digitally and controlled from anywhere on a variety of devices, including mobile, desktop and tablets.
“There’s a lot of exciting potential out there. For the first time, appliances can be better informed about when to run so they avoid peak-hour pricing. We are in the early stages, but we’re already seeing consumers seeking out these benefits.” – says Ben Artis, Whirlpool’s senior category manager of smart homes.
“Connectivity turns conventional devices into intelligent ones, opening the prospect to numerous creative new use cases and applications” said Timm Lutter from Bitkom, the German digital industry association.
According to the study authored by Bitkom and consulting company Deloitte, “Wearable are the logic next step from Smartphone, They bring the IoT close to the body and increase its practical use in everyday life.”
In the area of entertainment electronics, IoT technology helps users to establish very flexible media usage. Multi-room entertainment systems are an example how IoT standards enable cross-vendor compatibility and offer flexible ways to design and configure installations. The smart home increasingly turns to internet technology standards. For instance, a washing machine can send a message to the user’s Smartphone once the work is done. Tablet computers control heating and air conditioning increasingly through standard protocols. In entertainment electronics, the trend clearly goes towards connected devices. Drivers for the development are the roll-out of a fast networking infrastructure. Globally it is expected that in 2015 there will be about one billion connected devices. The aspect of connectivity also impacts the marketing strategy of consumer electronics vendors. Besides the products themselves, the services associated to them increasingly are in the fore, from entertainment content to navigation solutions for vehicles and to security services for the smart home. Some facts about IoT market prospects in consumer market as per BI Intelligence report are:
IoT based smart-home gadgetry is expected to take off. One of every five U.S. homes with broadband access will buy at least one smart-home device within a year, pushing up sales of these devices from 20.7 million in 2014 to 35.9 by 2016, according to a survey released in October by the Consumer Electronics Association. Half of the surveyed buyers were under 35 years old.
- Connected-home device shipments will grow at a compound annual rate of 67% over the next five years, much faster than Smartphone or tablet device growth, and hit 1.8 billion units shipped in 2019
- Connected-home devices include all smart appliances (washers, dryers, refrigerators, etc.), safety and security systems (internet-connected sensors, monitors, cameras, and alarm systems), and energy equipment like smart thermostats and smart lighting.
- The connected-home category will make up about 25% of shipments within the broader Internet of Things category this year, but that share will increase gradually to roughly 27% in 2019 based on our forecast, as growth in other IoT areas picks up.
- Connected-home device sales will drive over $61 billion in revenue this year. That number will climb at a 52% compound annual growth rate to reach $490 billion in 2019.
- Home-energy equipment and safety and security systems, including devices like connected thermostats and smoke detectors, will become popular first, leading the way to broader consumer adoption.
With the solutions available today, you may no longer need to remember to turn the oven off when the cake is done, switch on lights when you enter a room, or run the clothes dryer when electricity rates are cheapest. Your home will do it for you. These consumer products are part of the Internet of Things (IoT), aimed at automating our lives by connecting mobile devices to appliances, lights, and just about everything—a shift that could improve efficiency if it works right, but compromise privacy if it doesn’t. They monitor behavior—via motion sensors, Bluetooth signals, or facial-recognition technology—to identify when we are home or away and make corresponding tweaks to room temperatures or lighting. But will it be as simple and reliable as it seems what will be the adverse effects and how will it transforms our lives.
Ease with Connected Gadgets
- Lifestyle drives consumer adoption of the IoT
Consumer connected products like smart phones and other electronic gadgets offer us greater convenience and have seen staggering adoption, growth and success, but there may be a limit to what they can deliver. Commercial adoption of the IoT are simply too profitable to ignore. There’s a growing necessity to manage complex products with smart manufacturing, requiring a strategic reshaping of operations rather than just a piecemeal investment in smart machinery.
- Consumer data engages users to analyze and optimize
Smart product data can provide consumers with direct informational feedback (e.g. fitness devices), or enable services (e.g. energy conservation). Data can also serve as a conduit for data brokering, much the same way Face book resells user information to advertisers. Over time, these products should evolve to optimize machine to human (M2H) interactions, increasing valuable profiling data. M2M over M2H could prevent valuable human-sourced analysis of operational data, so the appropriate balance needs to be found.
- Consumer IoT systems use simple networks and protocols
While consumers continue to use Wi-Fi, Bluetooth, and 4G to connect them in their home, office and car, a more sophisticated internet of homes and cars will introduce new data to conserve energy, reduce traffic and other lifestyle improvements, while protocols will be refined to deliver maximum service and satisfaction at lower cost. Consortiums are currently assembling standards recommendations and vendor certifications. Protocols will serve diverse requirements (e.g. low power, compact, sporadically distributed field sensors will have different optimal communication protocols than complex, centrally operated machinery), and commercial IoT platform solutions will help to solve current protocol challenges.
Very soon we may see a commercial move to the IoT will continue to be larger-scale, conscious and strategic, while consumer growth will be based on piecemeal interest in smart product categories. A true M2M-based IoT is already materializing in the commercial market. The consumer market will follow later, as innovators recognize the true value of a network of smart connected products.
Challenges with IoT
No Universal Coding Language or Protocol
The IoT industry’s biggest challenge may be compatibility. Not all products can talk to each other, because there is no universal coding language or protocol. So tech behemoths are elbowing for market dominance. Last year alone, Apple launched its HomeKit app to connect home products to its Smartphone, Google spent $3.2 billion to buy Learning Thermostat-maker Nest Labs, and Samsung acquired the maker of a hub—Smart Things—that can control and coordinate devices made by different firms. Consumers can get frustrated if products don’t work with each other; companies are now rallying to create one language. “It’s going to take time, but there’s great momentum,” says Mike Soucie, who leads Nest’s partnership program, Works with Nest. In July, his company joined Samsung and others in launching Thread Group, aimed at building a new communication standard that all devices can use. Companies must collaborate to make connectivity work, Samsung CEO Boo Keun Yoon said in a keynote CES speech. “The Internet of Things has the potential to transform our society, economy, and how we live our lives,” he said, but to deliver on that promise, “it is our job to pull together.” Nest is working with more than a dozen big companies, including appliance makers LG and Whirlpool and lighting companies Osram and Philips, to ensure products can talk to each other. For example, unlocking or locking doors with the August Smart Lock will automatically put the Nest thermostat into “home” or “away” mode. If the thermostat indicates no one will be home for hours, it can tell a Whirlpool clothes dryer to use a slower, lower-heat setting or wait until off-peak hours when electricity rates are lower.
Isn’t IoT is making your personnel data unsecure???
As the number of Internet connected-devices in any home skyrockets from a few, to a few dozen, to perhaps even a few hundred—including interconnecting thermostats, appliances, health and fitness monitors and personal accessories like smart watches—security concerns for this emerging Internet of Things (IoT) will skyrocket too. More the data is available on cloud, more is prone to hacking. So the most important and difficult concern to implement an IoT based consumer item is ensuring data security. IoT security has various meanings: data privacy, reliable connections, protection from attacks. Cisco projects that there will be 50 billion connected devices by 2020; each such node should ideally be protected against malware, spyware, worms, and trojans, as well as overzealous government and commercial interests who themselves might produce their own privacy-compromising intrusions. IoT security is a real concern as the first wave of gadgets rolls out into the marketplace. And unlike devices with faster processors and bigger memories, security is a product feature that the marketplace may not by itself reward. Without the threat of end-user backlash, there is no strong business case for manufacturers to add a ubiquitous security element into the development process. Also, commercial pressures could in fact only reduce IoT security as many small players rush to be first to market. It’s also likely that all the players could pursue siloed security standards that would leave substantial security holes as those devices interconnect with still other Internet-enabled devices.
IoT Security Foundation
The Internet of Things Security Foundation has been formed with a large list of associate members having sprung out of discussions held at the UK’s National Microelectronics Institute. The organization already has the backing of over 30 organizations including: Broadcom, Freescale, Imagination Technologies, Inside Secure, Tokyo Electron, Vodafone, uBlox and many other companies and academic institutions. The organization has been formed to response to concerns over the security of IoT systems and how those concerns could limit an economic impact that is likely to measured in trillions of dollars globally and be disruptive and transform society. The IoTSF will set out how it is going to address these concerns at the launch event. The groundwork for the formation of the IoTSF was laid at an IoT Security Summit held earlier this year at Bletchley Park. The IoTSF security can only be addressed by working internationally and with other IoT alliances and standards bodies.
Do you want IoT in gadgets
Companies are rushing to create apps and embed chips in everything from blankets to shoes. If technology firms have their way, everything we use on a daily basis, from our toothbrush to our car, will one day be connected to the internet. As companies rush to create apps and embed chips in everything from blankets to shoes, it’s unclear whether consumers are as hot on the “smart everything” trend. After all, people probably don’t need an alert on their phone to tell them when their toast is ready – the bread popping out is a pretty good clue. Companies are quite about sales figures for smart appliances. Experts project that the market for smart appliances overall will reach only around £3.3bn in sales by 2015. And that may indicate a slow market for smart devices, except for the really useful ones. Consumers who are buying such products appear to want more than just connectivity. They also crave simplicity. The research firm Accenture found in a global survey released this week that 83 per cent of people who have used smart devices such as fitness monitors, home-security systems and even smart thermostats have had frustrating problems getting those devices to work. To sell the idea – convincingly – to consumers, companies will have to think hard about how to make connected devices useful, safe and understandable to the average person. The majority of consumers are open to purchasing connected devices and products instead of the everyday items they’re used to. Seventy-one percent of consumers would purchase a smart refrigerator if offered at the store instead of the standard model, and 76 percent would purchase a smart smoke or CO2 detector. This suggests that point of-sale information from sales associates and promotions could be effective ways for retailers to increase sales of certain types of connected technology. While price is a factor for many consumers, it is not the largest barrier to adoption and varies depending on the type of device. In fact, most consumers are willing to pay a premium for connected technology, especially when it involves safety:
- Price isn’t a major factor in concerns about smart in-home devices. Roughly one in five consumers believes smart smoke detectors are too expensive, compared to 83 percent of consumers who believe smart cars are too expensive.
- Consumers are more likely to pay a premium on a smart home device that offers safety (e.g. a smart smoke alarm) over novelty (e.g. a smart fridge) (83 percent of consumers were willing to pay more for a smart alarm, compared to 59 percent who were willing to pay more for a smart refrigerator).
- Twenty-five percent of consumers express concerns about the price of maintaining a smart fridge; only 16 percent of consumers express concerns about the price of maintaining a smart smoke alarm.
Market Potential
The majority of software developers creating Internet of Things (IoT) applications are targeting the business market, which offers more growth potential than the consumer side. According to a survey carried out by Embarcadero Technologies, which quizzed 1,040 developers working on IoT software. The results show that 84 percent are aiming squarely at the business market, while just 16 percent are gunning after consumers. These survey results confirm that the IoT is crossing over from consumer gadgets to business productivity and customer engagement. In the consumer space, individuals connect to the IoT typically through a single personal mobile device, with the IoT experience encircling the user. However, with business solutions IoT includes users and encircles the business and enterprise assets. The IoT connected applications developers build for the enterprise are essential to connect the disparate parts of a distributed IoT business solution, from mobile devices, wearable and sensors, to cloud and on-premise enterprise back-ends. Software developers will clearly play a pivotal role in driving IoT innovation and business adoption in 2015 and beyond. According to the results of the report, 63 percent of data generated by ‘things’ will move between devices and servers, 68 percent will communicate using multiple technologies, while 40 percent will connect to cloud services. Developers are also moving away from traditional touch input. Some 95 percent of those surveyed said that 90 percent of IoT devices will accept non-traditional input, such as sensors, GPS and line of sight, while an additional 26 percent will present information in non-traditional ways, such as virtual reality, haptic, audible and environment change. However, companies need to consider the potential security implications of the IoT. Companies may have initial trouble in convincing the customers to go for fridge or oven connected with their mobile phones. Makers can overcome potential barriers such as usefulness, price, security and privacy through a variety of means. As a starting point, companies that sell or are planning to sell in-home smart technology can focus on some of the most important features consumers listed beneficial. These include:
- Location-based coupons or offers delivered to their mobile device for frequently purchased foods
- Recipes on their mobile device that they can create with the ingredients in their refrigerator
- Money-saving tips and information about the least expensive place to purchase favorite products
Top Companies in IoT Based Consumer Gadgets
(Research by MBASkool, Financial data FY 2014 – 15)
Rank 1. Apple Inc – Sales: $ 199.4 B
Founded by Steven Paul Jobs and et al in 1976 and is headquartered in Cupertino, CA. Apple designs, manufactures and markets world’s best PC and mobile devices. It also sells a variety of related software, peripherals, networking solutions, and third party digital content. iPhone, iPad, iPod, Mac, Apple TV, Apple Watch, electric vehicles, iCloud services, etc. are some of the famous apple products today. Apple has a high brand loyalty, which is difficult in these days. It is possible because Apple has not only created devices but also how creatively someone can use their devices. Their online and offline presence has made it the power it holds now. Apple has a round 470 stores across the world and it has contributed in every aspect for consumer electronics today.
Rank 2. Samsung Electronics – Sales: $ 195.9 B
Company was founded in 1969 and is headquartered in Suwon, South Korea. Samsung has operations in three business segments include Consumer Electronics, Information technology and mobile communication and Device solutions. The Company is a major vendor for Tablets and smart phones. It has a wide range of tablets giving rise to “Phablets engineering”. Laser printers, digital cameras, DVD and MP3 players, home appliances etc. covers the Consumer electronic area. Samsung also has business in semiconductor devices such as flash memory, Smart cards, mobile TV receivers, RAMs, and other storage devices. Other products include OLED panels for laptops, networking and cellular devices.
Rank 3. Hewlett Packard, HP – Sales: $ 109.8 B
Founded by William Hewlett and David Packard in 1939.Its headquarters are located at Palo Alto, CA. The Company provides software, hardware, and other computer accessories to consumers, Small and medium Enterprises (SMEs) and other sectors. HP product line include HP’s Imaging and Printing Group(Inkjet and Laser printers, Indigo digital press, light scribe optical recording technology, HP photo smart digital cameras etc.),HP’s personal system group(Business PC, Consumer PC, Pocket devices etc.),HP Enterprise Business, HP Software Division(HP provides software as a service, saas ,cloud computing solutions, consulting etc.),HP financial services and corporate investments.
Rank 4. Microsoft – Sales: $ 93.3 B
Microsoft was founded by William Henry gates III in 1975 and is headquartered in Redmond, WA. Microsoft has dominated people’s lives. Whenever it comes for Software’s and hardware’s, Microsoft has always stood first. Company delivers new products for every consumer and for every industry domain. It engages in manufacturing, selling, and developing new software, consumer electronic goods, and many other accessories. Company products include operating systems for PCs, servers, mobiles, software development tools, videos games and online advertising. Entertainment and devices segment offers plethora of products for consumers such as XBOX 360, XBOX LIVE, and Kinect for XBOX 360, etc. Microsoft has managed its brand through innovative devices and new interactive software and hardware. It has rebranded its products portfolio from time to time. Software giant has also acquired Skype technologies in 2011 for $ 8.5B, its largest acquisition till date. Recently Microsoft has also shown interest in Virtual Reality (Oculus VR).
Rank 5. Hitachi – Sales: $ 91.26 B
Hitachi was founded by Namihei in 1910 and is headquartered in Tokyo, Japan. Various business segments through which the company operates include Information and telecommunication system, Power systems, Social infrastructure and Industrial systems, electronic systems and equipment, construction machinery, Digital media and consumer products, financial services and others. Five major industry targeted by Hitachi are Power systems, Rail systems, water, infocomm technology and Home appliances. Hitachi has participated in demonstration project realizing hospital energy saving. The company also wishes to establish global structure for the social innovation business with the aim of increasing the overseas sales by more than 50%.Hitachi has a different strategy; it looks into the synergies between the divisions and adds value to it.
Rank 6. Sony – Sales: $ 76.9 B
Founded in 1946, Sony Corporation is headquartered in Minato, Tokyo, Japan. Sony is the electronic business unit of the parent Sony group, which operates in four segments namely, electronics, motion pictures, music and financial services. Sony has dominated the market in the domain of Video games and home entertainment products. Sony is ranked 105th in the Fortune 500 global list. Major business comes from the Sony pictures Entertainment, Sony computer Entertainment, Sony music entertainment, Sony mobile communications and Sony Financial. Apart from Consumer electronic Sony has also expanded its business through financial and medical services also. The company acquired iCYT mission technology to target health sector. It has develop 4K resolution endoscopes and contributed to genome analysis in Japan. Its financial services include life insurance, Damage insurance, banking and credit finance business.
Rank 7. Panasonic – Sales: $ 73.5 B
Panasonic Corporation was founded by Konosuke in 1918, headquartered at Osaka, Japan. This Japanese multinational conglomerate has grown to be one of the largest electronics producers in Japan. Panasonic is the world’s fourth largest television manufacturer by 2012 market share. Panasonic has established its brand in North America, Europe, India and Indonesia. Panasonic has announced that it will revive its audio equipment brand name, Technics. In addition to electronic goods, the company also offers non electronic products and services such as home renovation. Recent innovative development by Panasonic is smart TV’s powered by Firefox OS.
Rank 8. Toshiba – Sales: $ 63.2 B
Toshiba Corporation was founded in 1938 through the merger of Shibaura SeiSaku – Sho and is headquartered in Tokyo, Japan. The Company deals with the manufacturing and sales of electronic and electrical products. Toshiba was the world’s 5th largest PC vendor and 4th largest semiconductor vendor measured in terms of revenues. Its various business domains are: energy and infrastructure, Community solutions, medical services, Electronic devices, life style products, lighting and logistics, Power systems and household appliances.
Rank 9. LG Electronics – Sales: $56.84 B
Founded by In – Hwoi Koo in 1958, LG electronics is a South Korean multinational electronics company. The Company operates through five major business segments: TV and Home Entertainment, mobile communication and computer products, Air conditioning and Energy solution, Home appliances and vehicle components and 128 operations worldwide. Its products range from TV, home theatre system, refrigerators, washing machines, computer monitor, and Smartphone. LG Electronics plays a great role in designing state of the art smart TV’s and making them as user friendly as possible such as OLED(Organic Light Emitting Diode) TV launched in 2013 and now LG is using WebOS with a ribbon interface with some of its smart TV’s. The company has plans to partner with Chinese and Japanese firms to make OLED TV more mainstream.
Rank 10. Intel – Sales: $ 55.9 B
Intel is one of the top brands when it comes to PC and mobile microprocessors. The Company was founded by Robert Noyce and Gordon Moore in 1968, Head quartered in Santa Clara, CA. Intel designs, manufactures and sells computer components and related accessories. It engages in designing microprocessors, chipsets, and motherboards, wireless and wired connectivity products. Intel has five major business segments in which it operates: PC Client group, Data Centre Group, Software and services operating group, Internet of things group and all other such as Non-volatile Memory solutions group as well as other various revenues, expenses and charges.
