According to reports from Zhitong Finance APP, on November 21, the Ministry of Industry and Information Technology publicly solicited opinions on the "Guidelines for the Construction of a Comprehensive Standardization System for Smart Homes (2024 Edition)" (draft for comments). It mentions that by 2030, more than 50 national and industry standards will be newly established in the smart home field, basically covering basic standards, key technology standards, and application scenario standards, with some standards being transformed into international standards, significantly improving the technical standards level and international influence, forming a smart home standard system suitable for China's new era development. According to statistics from Statista, in 2023, the global smart home market has exceeded 100 billion USD, and it is expected to reach 160 billion USD in 2024 and 207.8 billion USD in 2026. From the development trend, the smart home industry has broad development space.

In terms of application scenarios, the standards include smart care, smart housekeeping, smart security, smart energy, smart health, smart audio-visual, smart car home, and other 8 parts.

The draft for comments points out that a smart home is a comprehensive service platform based on ai, internet of things, big data, cloud computing, and other new generation information technologies, characterized by scenario-based device linkage, intelligent information services, and cross-platform interconnection.

Smart homes can be seen as the application of new generation information technology in the home environment, capable of setting and fully executing multi-device coordination rules based on user habits and specific trigger conditions; accurately identifying the needs of home users and providing personalized content recommendations, knowledge Q&A and other interactive services through voice, video, and other means; completing cross-platform smart home device registration, communication, control, usage, and user data privacy protection with the aid of unified communication protocols. China's smart home industry has a large scale, sufficient consumer potential, broad development space, and comprehensive industry coverage, making it one of the important guarantees to meet the people's growing demand for a better life.

After years of development, China's smart home industry system has shown characteristics such as innovation-driven, cross-industry integration, and differentiated development. New products, new technologies, and new applications have continuously enriched the connotation of the smart home industry, and its scope has significantly expanded, becoming a comprehensive industry covering smart terminal manufacturing, information software services, real estate, broadcasting - tv, and entertainment.

It is worth mentioning that according to the Family Brain White Paper, since the emergence of the Family Brain, with the gradual maturity of technologies such as ai, cloud computing, and 5G communication, the smart home industry has ushered in a period of comprehensive explosion.

The emergence of ChatGPT has sparked a wave of generative ai, leading to the appearance of many large language models (LLM) internationally and domestically, including ChatGPT, Wenxin Yiyuan, Xinghuo, and numerous other models, as well as large models for video generation like Runway and Sora, opening up new lifestyles for users, developers, and businesses. In the smart home industry, AI technology represented by LLM is also accelerating the transformation and innovation of smart home products and scenarios. The successful implementation of these scenarios not only creates a healthier, safer, more comfortable, convenient, and low-carbon personalized home living environment for users but also increases the consumer willingness of a wide range of users, injecting new momentum into economic development, further raising the global penetration rate of smart homes and accelerating the development of the entire industry.

Specifically, the smart home domain model represented by HomeGPT has taken the lead in exploring practices and promoting the development of the entire industry. HomeGPT not only inherits the basic capabilities of general large models in natural language processing, text processing, and image processing but also further develops deep semantic understanding technology, conducts training to enhance family knowledge to the level of hundreds of millions, and develops the industry's first scene generation alert. The smart home domain large model emphasizes the integration with hardware products and the linkage of scenarios, making scene customization and smart home applications more intelligent and popular, opening a new era of AI applications for smart homes.

According to statistics from Statista, the global smart home market has surpassed 100 billion USD in 2023, expected to reach 160 billion USD in 2024, and 207.8 billion USD in 2026. From the development trend, the smart home industry has vast development potential.

In the future, with the implementation of AI domain large models, a reconstruction of intelligent productivity will occur, promoting innovation and upgrading in the smart home industry on a new track, providing consumers with smarter, more convenient, and personalized products and services.

Related concept stocks:

China Telecom (00728): In the first three quarters of 2024, the company's fixed network and smart home service revenue reached 95.62 billion yuan, a year-on-year increase of 2.9%. The number of wired broadband users reached 0.196 billion, and smart home revenue increased by 17.0% year-on-year, with a broadband comprehensive ARPU of 47.8 yuan, continuously enhancing the value contribution of smart homes.

Haier Smart Home (06690): Haier HomeGPT has taken the lead in applying large model capabilities to smart homes, fully promoting the industry's interactive experience, smart scene capabilities, and life service capabilities through unique deep semantic understanding technology, enhancement of family knowledge to hundreds of millions, and the industry's first scene generation engine.

Xiaomi Group (01810): Driven by the high growth of smart home appliances, the gross margin of the IoT business has further optimized, with a gross margin reaching 20.8% in the third quarter, an increase of 1.1 percentage points quarter-on-quarter. In October this year, Xiaomi's smart appliance experimental center officially began operations, and the core self-developed capabilities of IoT are expected to improve further.