Earlier this month, GM announced that it will be adopting Google’s Android Automotive operating system, which included Google’s voice assistance (Google Assistant), embedded navigation (Google Maps), and in-vehicle applications (via the Google Play Store), for all of its vehicle brands beginning in 2021. This landmark deal reinforces the importance of developing and delivering a differentiated in-vehicle experience, as well as demonstrates how large horizontal technology platforms and brands are targeting IoT and key verticals (like automotive) for growth.
Earlier this summer, my friend’s daughter began a new job, her first one right out of college. Amidst all the usual starting-a-new-job hubbub of picking health insurance and setting up her direct deposit, she was also faced with getting her hardware – laptop, tablet, and smartphone – selected and set up. It’s a task many of us are usually faced with, and don’t spend too much time thinking about. However, not long after starting her job, she called me at work with a question:
“Ramon, which wearable should I get?”
This post originally appeared on IDC’s UK Blog, and concentrates on European data. To see the original post, click here.
“Digitally determined” organizations no longer ask if something is possible. They assume it is. Corporate leaders identify what they wish to achieve. Those goals are broken into use cases. The organization then works backward to determine what technologies are needed. IT suppliers need to be on board with these use cases. Many suppliers say they put customers first and that they work backward from business goals to create their products.
For the second year, IDC surveyed more than 2,000 U.S. vehicle owners to learn more about how they prefer to buy, use, and pay for connected, automated, and next-generation vehicle technologies. IDC utilizes these surveys to help reinforce and realign the priorities of IDC’s Next-Generation Automotive Strategies’ research practice, as well as to assist automotive and technology suppliers, buyers, and manufacturers understand technology adoption and areas of focus.
The consumer Internet of Things (IoT) market is crowded and complex, with several market segments that organizations must consider when evaluating their needs. IDC’s newest snapshot of the consumer IoT market shows the wide array of technology suppliers currently in the market, and how specialized needs have become.
IDC anticipates that the worldwide consumer IoT market will witness substantial growth over the next five years as consumers become more aware of the conveniences, cost savings, and energy efficiencies that connected devices and services can provide. The market’s growth will further be driven in part by rising broadband penetration, rising disposable incomes in developing countries, and increasing consumer awareness of smart assistants. However, consumer concerns around privacy, security, costs and interoperability will constrain the market’s development for the near future.
This wave of growth has already started, as evidenced by the wide array of vendors inhabiting the consumer IoT space today. In order to break away from the pack, vendors will need to find ways to differentiate. Here are two key areas of differentiation that vendors should pay attention to:
Data Collection and Analysis are Keys to Success
Across both the DIY and managed solution segments, data collection, management, and analysis are key to evolving and growing home IoT solutions, and that data flow is contingent on diverse and early gains in users. Successful vendors will strategize around how to boost that data flow through introducing broader sets of applications, increasing the number and type of users, creating unique solution sets, and intensifying the usage of applications.
Service Delivery Strategies Are Important
Device makers should develop a long-term strategy for service delivery. While device elements such as design and reliability are necessary for success, differentiation and margins lie elsewhere. The services enabled by software provide a solution’s sustainable distinction. IoT-enabled consumer products are accelerating the consolidation of value in services while diminishing the margins in the devices themselves.
Learn more about the consumer IoT market and see what trends vendors should be aware of in IDC’s Market Glance: Consumer IoT.