Vendors and buyers in this space must be aware of key disruptors that will shake up the market in coming years. Those forces include the mainstreaming of the DIY movement; the increasing importance of Bluetooth and Wi-Fi; consumer adoption of connected lighting; the rise of alternative hubs from Apple and Google; sensory overload driving users to abandon complex tools; and the possibility of protocol/radio standardization.

Key findings in this Sector Roadmap^TM include:

• The next wave of the smart home will manage itself with minimal human interaction.
• Bluetooth and Wi-Fi will play an increasingly important role in the market.
• Protocol standardization won’t happen overnight, but vendors are optimistic about Thread.
• Future hub technology could be embedded in a set top box, TV, gaming console or some other new device.
• Next-generation platforms must be able to abstract devices to streamline onboarding.

Key:

• Number indicates companies relative strength across all vectors
• Size of ball indicates company’s relative strength along individual vector

Source: Gigaom Research

Thumbnail image courtesy: iStock/Thinkstock

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Key findings in this report include:

• The maritime industry has been significantly compromised but has yet to adopt even the most basic security practices.
• The airline industry presents a high-value target to hackers, and is following a path toward connectivity that is very similar to that of the maritime industry. It has, however implemented a number of industry-wide security protocols that significantly reduce its exposure.
• Businesses should follow a four-step process of awareness, flexibility, comprehensive design, and standards-based development.
• Companies should take advantage of publicly available training offerings and resources. They should also look to hire cyber security professionals to continually measure and report on the progress of security programs that have been put in place.

The post IoT security: lessons from the maritime and airline industries appeared first on Gigaom.

As interest in the internet of things (IoT) has grown, so too has business’ focus on machine-to-ma­chine (M2M) communications. This is especially so given that in addition to the advent of the cloud, the falling cost of devices and components, cheaper airtime, new and more mature networking technologies, and the emergence of service delivery platforms (which dramatically reduce M2M complexity) have all accelerated the growth of this market. The operational efficiencies that can be achieved when systems and devices are connected in real time such as better inventory management, remote IT support, automatic data entry, and improved interdepartmental communication are just too great to overlook.

Key highlights from this report include:

• M2M data is set for a huge explosion, with billions of connected devices predicted by 2020. This necessitates the management of vast swathes of structured and unstructured data.
• Batch processing of machine data is used to uncover patterns in data that enable smarter business decisions. Hadoop is still considered the de facto standard for big data analysis.
• To uncover patterns that will provide insight about the past, present, and future, both batch and real-time processing of data streams is desirable. Only then can things like automatic fault detection and diagnostics of equipment ensure that maintenance is carried out optimally. Storm, Jubatus, and AerCloud are examples of real-time or near-real-time machine-learning solutions.
• As M2M devices and data increase, so too will the probability of hackers targeting these systems to exploit networks, steal data, hijack systems, and compromise workflows. End-to-end security therefore needs to be implemented to fully protect enterprise networks.
• Firewalls, secure boot, and strong encryption and authentication are all ways to boost security.

The post How M2M is changing the mobile economy appeared first on Gigaom.

Smart home technology has been available since the 1970s, but until recently it has been relegated to niche market status, available to either the very affluent or to tech savvy hobbyists keen to link a selection of disparate components. The building blocks that will finally see it realize its huge potential have now fallen into place. The maturation of mostly standards-based wireless connectivity technologies such as Wi-Fi, ZigBee, and Z-Wave and the development of open, cloud-based software platforms have ensured that vendors can offer smart home solutions at a fraction of the price of traditional systems. Furthermore, the high penetration of home broadband, the growth in smartphone and tablet ownership, and the continuing deployment of smart meters mean that consumers can easily and affordably control the connected devices in their homes.

Telecommunications giants such as AT&T and Verizon, major cable operators like Cox Communications and Comcast, and home security companies like ADT have all entered the fray eager to generate new revenue streams and differentiate themselves from competitors. Likewise, electric and gas utilities including British Gas and Essent and retailers like Lowe’s and Staples will join the fight for a slice of this lucrative pie. In turn, this battle for market share has created a new awareness of smart home technology. The question is no longer if — or when — we will start to live in automated and controllable homes; the transformation is taking place right now.

Key highlights from this report include:

• In fighting for their slice of the market, device manufacturers, connectivity service providers, and application developers should not forget that solutions must be useful, convenient, affordable, simple, interactive, and extensible.
• The next stage of the smart home market is not just about connecting other “things” to a central platform; it is about building simplicity and convenience around this platform to better suit people’s lifestyles. To do this, vendors must support multiple connectivity technologies and offer open APIs.
• When more and more new services are developed using this approach, the lines between various smart home solutions will blur. The consumer will come to know rival systems simply as different connected home offerings, not as “home energy management by Vendor X” or “home security and monitoring from Vendor Y.”
• For now, bite-sized mini propositions that deal with a specific initial focus application are necessary to titillate consumer demand by providing recognizable and easy to use services that act as an entry point into the endless possibilities of the wider smart home market.

The post Battling for the home: new options for the connected consumer appeared first on Gigaom.

The IoT is regularly associated with home automation; however, the market for home energy management systems and smart appliances, which many expected to track the rollout of smart meters and to give rise to truly connected homes, have both failed to take off. Today, many of these products are still involved in small pilot programs. The arrival of a number of glitzy cloud-enabled gadgets like Belkin’s WeMo line and the Nest Learning Thermostat could accelerate things rapidly. These devices, however, aren’t truly IoT; they are connected to the internet but remain isolated from one another.

For the smart home to ignite the IoT, home automation software platform vendors must provide open APIs. SmartThings and future open-API platforms could be the disruptive players that encourage a tidal wave of interconnected things.

Key findings from our analysis include:

• Do-it-yourself (DIY) kits and high-end luxury installations are creating competition across previously separated home automation sectors. This, coupled with cloud-based services and general-purpose controllers built on apps, is driving much growth. Meanwhile, service providers like telecommunications companies (telcos) and utilities are raising category awareness with low-cost offerings.

• Extensible software platforms from the likes of Alarm.com, iControl, and AlertMe mean that service providers can introduce new services to end customers over time. A home security-focused solution, like Comcast’s XFINITY Home package, easily can be extended to incorporate home energy management or home health capabilities. Open-API platforms would accelerate this extensibility and enable even more competition.

• Currently the largest segment, custom-designed smart home systems will grow at only a 7-percent rate, compounded annually, to $2.2 billion in 2017. DIY kits will grow much faster but still only reach $200 million in annual sales by then. In contrast, connected home systems will explode from a $300-million base to $1.5 billion in 2017.

The post Forecast: smart homes and the internet of things appeared first on Gigaom.