Cleantech Market Intelligence
CES 2018: The Year of Behind-the-Scenes Innovation
A year ago at CES, the event belonged to Amazon’s Alexa, with vendors touting Alexa integrations and displaying Echo devices prominently at their respective booths. At CES 2018, however, a single showstopper failed to materialize—unless one includes the power outage at the Las Vegas Convention Center, which was the biggest surprise (and I was there). In lieu of one standout product, I noted several key trends, including the ever-popular artificial intelligence (AI), a growing number of home healthcare offerings, an aggressive push from Google, and an expanding presence of French startups.
Everybody Is Doing AI
This year, much of the innovation is taking place in the backend software of smart products: the AI world. Nearly every company I spoke with flaunted the use of deep learning and AI. While the term AI was used loosely to describe algorithms and machine learning, this behind-the-scenes technology is progressing, which enables more advanced functionality for smart products. There are new and better algorithms, such as those used in Philips’ Hue Sync, which enables multiple connected lights to respond in sync to movies, video games, and music in real time. Advancements in machine learning are enabling digital assistants to recognize the voices of individual people and understand conversational context.
Home Healthcare Edges its Way into the Spotlight
Home healthcare continues to edge its way into more connected products, and this was underscored as I made my way around the crowded show floors. Offerings varied from elderly care solutions, to products for promoting better sleep, to services for people to better connect with their doctors. While propositions such as security, energy, and convenience are largely driving smart home adoption, healthcare solutions can provide enhanced value on a more personal or familial level. Health-focused products can help users better track their own health or the health of loved ones, and can help prevent unexpected illnesses and diseases.
Google Starts Taking CES and the Smart Home Seriously
Google’s presence was everywhere at CES 2018. The search giant’s messaging took over the Monorail, the Aria hotel’s display featured “Hey, Google” ads, and a giant Google gumball-style machine dispensed Homes and Minis to lucky CES attendees. Amazon took a lighter approach by booking ballrooms dedicated to business meetings with various Amazon business groups, including Alexa. This increased presence not only shows that these two companies are taking their engagement in the smart home market more seriously, but it also highlights the absence of Apple. Apple is being left behind in the smart home space, especially with the delay of its HomePod speaker and a continuous lack of traction with HomeKit.
The French Are Innovating
France’s efforts to become the startup capital of Europe were made obvious at CES by the sheer number of French startups present during CES 2018. From companies demonstrating software for making bathroom mirrors smart to Li-Fi-based IoT platform providers, the French are innovating and becoming a hotbed of opportunity for stakeholders across smart industries.
A World in Transition
Though CES 2018 did not have one major theme like that of past shows, the trends I observed fell in line with the progression of digitization that Navigant Research is seeing. Companies are transitioning from deploying hardware devices to enhancing their existing solutions through data and backend software. Large tech incumbents are recognizing the power of the smart home and investing heavily. New value propositions for this tech are emerging and providing more convincing use cases for consumers; new markets are growing from this opportunity. To learn more about these trends, see Navigant Research’s white paper on IoT and the Future of Networked Energy.