Internet of Things in the Home

Strategy Briefing

About This Report

May 2018

The Internet of Things (IoT) in the home is already a multi-billion-dollar global industry, as premiumisation, efficiency and technology adoption have encouraged households to embrace smart solutions. This briefing will analyse the current market opportunities and prospects of IoT for individual areas of the home – the kitchen, bathroom and living room – and provide relevant case studies that reflect current trends in smart-home solutions.

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Internet of Things in the Home

Kitchen: most lucrative for appliances

IoT is driving the kitchen space beyond simple connectivity and apps to platforms that connect the cooking, storage, commerce, planning and every other aspect of the kitchen into a holistic system. The sheer range of appliances and actions performed by homeowners in the kitchen make this household space the most lucrative and innovative spot for manufacturers.

Bathroom: nascent market

The bathroom remains a fairly underdeveloped space for IoT devices. This is partly due to the limited number of appliances there and a lack of awareness among consumers of actual available products. Toilets, showerheads, washing machines and toothbrushes are the most commonly purchased IoT goods.

Living room as an e-commerce hub

As consumers and devices become more and more connected, the possibilities in terms of what could be leveraged as a vehicle for enabling commerce are endless. The living room has become the focal point for this.

Ready audience

A typical household in an advanced economy today already possesses several IoT-enabled devices, such as multiple smartphones, a video game console, a smart TV and a desktop computer or laptop. While some of these devices may be dormant in terms of IoT usage, they represent a ready and capable smart infrastructure that can be applied to run a smart-home ecosystem.

Partnerships drive uptake

Service providers and smart devices are partnering up to deliver greater convenience to consumers, encouraging more users to expand their IoT experience. This has been the case particularly with Amazon’s Alexa hub.


Key findings
What is IoT in the home?
IoT market size estimates

IoT in the Kitchen

The kitchen is the most lucrative domestic area for IoT
Areas of current innovation and disruption
IoT and premiumisation to drive value of kitchen products
Market for IoT kitchen appliances is expanding

IoT in the Bathroom

Still underdeveloped, but big boost to water waste
Areas of current innovation and disruption
Connectivity a major factor in growth of bathroom products
Adoption of water supply key to global growth

IoT in the Living Room

The IoT living room is all about e-commerce
Trends driving IoT adoption in the living room
Rapidly growing segments with IoT possibilities
Future households will possess multiple IoT-enabled devices

IoT Case Studies

Akita: the antivirus protecting homes from digital threats
Android things: G oogle’s operating system for the home
Microsoft: investing US$5.0 billion in IoT