Smart Home and Connected Home Products: The Technological & Business View in Germany Dr. Michael Westermeier Technical product manager RWE SmartHome RWE Effizienz GmbH Page 1
SmartHome Systems in Germany: Consumer demands are known since years Controls heaters according to Switches your electrical Switches and coordinates your Connects to home entertain- Central control and configuration Enables energy management and user demand devices lighting ment and via Smartphone, brings energy white goods Tablet and PC savings Page 2
Recent studies promise a big SH-market potential in Germany and Europe Forecast Europe Forecast Germany Deloitte: Licht ins Dunkel Erfolgsfaktoren für das Smart Home, 2013; Ohland, G.: SmartHome 2011 Conference & Expo Ahaus, 2011 KOTSCHI Consulting Smart Home Studie 2013 => 1 Million SmartHome installations in German houses in 2020! Page 3
However: Actual market situation in 2014 market phases of SmartHome business' need for action very high very small small 2014 high not decided Critical phase Source: KOTSCHI CONSULTING: Smart Home Monitor 2014, Wiesbaden 2014 => Breakthrough into German mass-market expected in 2016 Page 4
What is the SmartHome mass-market about? DIY systems Gap Luxury home automation solutions Existing market for convenience and efficiency services; missing mass market products Low-cost devices Limited standard functionality Poor usability at least for non-technical users Poor design Do-it-yourself ~ 50 1,000 150-2.000 * "All-is-possible solutions", fully customised to individual needs Expensive Professional tradesman / service provider required for installation / setup 10,000 or more => SmartHome systems must be easy to use, secure and affordable Page 5
Main customer concerns/ comments At the market lauch of RWE SmartHome 2011: What is a SmartHome good for? Does it not make daily life more complex? Is my personal data secure? What does RWE know? What happens if the internet is crashing? Today in 2014: Usecases: How can I switch XYZ when AB is true? Can I include devices from manufacturer X? I need the additional functionality XYZ How can I develop myself apps and functions for your SmartHome? Page 6
The SmartHome market 2014 new players, much movement 2014 2011 Page 7
Actually all important SmartHome players are looking for partnerships and platforms Multi-functions open / platform closed, proprietary Single usecase Page 8
Our strategy for 2014/15: Strong partners! Customers ask for further devices/ new functionality RWE will probably never build devices like washing machines, lights, heating and AV-equipment Strong, managed partnerships with: High security Full interoperability New customer segments Miele, Buderus, Philips, further partners in preparation Page 9
RWE SmartHome Partner Solution Platform RWE Strategic positioning ü Energy expertise ü Operation of backend Non-energy-related device manufacturer/retailer Market knowledge in other markets or industries Software producer Retailers Platform Partners Developers System enhancements to support this Language changes now possible Device Development Kit with protocol chips available Software development kits for appliance integration or new apps Page 10
Problems to overcome on technology: Bridging the GAP between Internet and smart things Internet XML Http TCP/IP Web services Plug and play Interoperable SmartHome protocols Many existing protocols (ZigBee, Z-Wave, KNX, Modbus, ) Byte oriented communication Mostly proprietary Not interoperable => A customer does not care about technology and interoperability, it simply should work and bring brightness and warmth! Page 11
Thank you! and visit us on booth 4 F 32 Page 12