Transcript Understanding the Connected Home Market

Understanding the Connected Home
Market and How It Will Develop
Ron Zimmer, President & CEO
Continental Automated Buildings Association
October 28, 2009
New York, NY
CABA Board of Directors
1.
Bell Canada – Chairman Martin Cullum
2.
Tridel Corporation – Vice-Chair Leo DelZotto
3.
Honeywell International – Vice-Chair Roy
Kolasa
4.
Alcatel-Lucent - Lindsay Ellis
5.
BAE Systems - Steve Teubner
6.
Cisco Systems, Inc. - Tony Wan
7.
Direct Energy LP - David Dollihite
8.
Hydro One Networks Inc. - Tom Semler
9.
Leviton Manufacturing Co., Inc. - Tom Leonard
CABA Board of Directors
10.
Microsoft Corporation - Jonathan Cluts
11. National Research Council/Institute for
Research in Construction - Dr. Morad Atif
12. Philips - Dr. Satyen Mukherjee
13. Procter & Gamble - Orly Cocco
14. Siemens Building Technologies, Inc. - Brad
Haeberle
15. Trane - Gene Shedivy
16. Vantage/Legrand - Andrew Wale
17. Whirlpool Corporation - Carol Priefert
18. CABA - President & CEO – Ron Zimmer
CABA Vision
“The knowledge-based forum for
industry leaders who advance the
use of technology and integrated
systems in the global home and
building industry.”
How do we connect all of this stuff?
TV
TV
DMA
Touch
Panels
Thin Set-top
Remote
Home
Uber Set-top
TV
Modem
VoIP
IP
Camera
Offsite
Storage
Connected TV
USB Storage
HSS
Realties of the Smart Home
• Smart Home Vision of 10 years ago:
–
–
–
–
–
–
–
–
–
–
Did not happen for the masses
Did happen for the “Rich and Affluent”
Networked box in the garage
CAT5 wiring was just starting to sell, but not
for the masses
Sensor modules
Multi HVAC systems
Central touch pad (Home Controls)
Media server room with rack
Lighting, window treatments and cameras
Smart home today is main stream for the “Rich
and Affluent” and extreme upper income levels
Realties of the Smart Home
continued
•
Smart home today for mass market is a
connected home that has varied networks
developing:
-
Computer, gaming and TV
Wired and wireless
HVAC programmable thermostats
Security pack from companies like ADT, GE,
Honeywell, etc.
- Very basic web cam systems
Connected Home Research
Council (CH-RC) Members
Advisory Board Members (6):
Affiliate Members (17):
CABA’s Connected Home
Research Council (CH-RC)
The Connected Home Research Council
provides opportunities for research project
collaboration conceived and executed by
Research Council members. The resulting
research reports, white papers and
executive summaries are made available
to Research Council members and industry
stakeholders.
CH-RC State of the Connected
Home Market Study Research
• Study was completed in June of 2008
• Divided into three ecosystems (family, entertainment and
career)
• Web survey of over 800 North America people
– Home owners - 25 and older
– Responsible for managing the household
• Industry benchmark study 3rd study in eight years
• Funded by companies who are CABA’s CH-RC members
• Found that a home with sensors and “smartness” never
took hold for the masses due to:
– Cost of system and components
– Not being user-friendly
CH-RC State of the Connected Home
Market Study Research continued
•
•
The study did determine that entertainment is “king of
the dollars”
- TVs, gaming and computers connecting together
in a “plug and play” environment
The safe, secure and comfort areas are lagging
behind in consumers minds because:
- Price is higher than payback for investment
- Too complicated for the non-tech person to deal with
- “I already have to much technology in my home”
or “I do not want my home to run my life” or
“technology only complicates my life, so I don’t
want any more”
Complimentary Executive Summary at:
http://www.caba.org/2008connectedhomestudy.
The Realities
U.S. 2008
Appeal of Connected
Home Concept
Appeal (Q14B)
Definitely/somew hat
appealing (6-7)
Might or might not be appealing
(3-5)
Definitely not/somew hat not
appealing (1-2)
Base
Total
Online
HHs
A
U.S. 2005
Primary
Market
Mass
Market
B
C
Total
Online
HHs
D
23% G
51% HC
2% I
61% D
48%
16%
0%
(n=1,849) (n=1,378)
Canada 2008
Primary
Market
Mass
Market
E
F
Total
Online
HHs
G
22% G
51% HF
1%
71% FB
57%
48%
28% B
21% A
(n=471)
(n=1,834)
Primary
Market
Mass
Market
H
I
14%
44% I
0%
63% E
64% D
56% BE
68% H
1%
36% CE
22% A
0%
32% H
(n=921)
(n=913)
(n=649)
(n=455)
(n=194)
Note: Remember the consumer adoption curve.
Innovators and early adaptors will purchase
technology that others will not, until it becomes more
mature and consumer friendly.
Connected Home Backbone
Options Purchased When Current
Home was Purchased,
Among Homes Built 2000 or later
2008 U.S. and Canada
Total Online HHS n=60
Wired security system
60
%
Programmable thermostat
59
%
Built-in high-speed Internet
throughout the home
56
%
Structured wiring
45
%
Home energy monitoring/control
18
%
Centralized lighting control
12
%
•Remodel
•New construction
•House built during the last
housing bubble
Family Ecosystem
Computer Behavior —
Home Network
U.S. 2008
U.S. 2005
Canada 2008
Total Primary Mass
Total Primary Mass
Total Primary Mass
Online HH Market Market Online HH Market Market Online HH Market Market
A
B
C
D
E
F
G
H
I
Have Home Network
Yes
Base
43% D
53% EC
35% F
28%
40% F
(n=1,761) (n=1,324) (n=437) (n=1,768) (n=899)
19%
(n=869)
40% D
(n=620)
54% EI
(n=429)
33% F
(n=181)
Wireless Home Network (Wi-Fi)
Wireless (Wi-Fi)
Base
74% DG
(n=841)
75% E
(n=702)
72% F
(n=139)
51%
(n=484)
56% F
(n=339)
43%
(n=145)
63% D
(n=266)
68% E
(n=219)
58%
(n=47)
Laptop in Home Network
Laptop in home netw ork
Base
68% D
(n=880)
69%
(n=727)
67% F
(n=153)
60%
(n=520)
68% F
(n=358)
48%
(n=162)
66%
(n=288)
63%
(n=234)
69% F
(n=54)
Family Ecosystem continued
Interest in Family Ecosystem
Application Areas
% Very Interested; Top-2 Box
Using technology to help you automate
or control basic home systems like
lighting, heating, ventilation and air
conditioning (HVAC) in general*
Using technology to streamline routine
tasks like preparing meals, arranging
family members’ schedules and paying
bills in general
Using technology for home security in
general
Base
U.S. 2008
Total
Primary
Online HH Market
A
B
Mass
Market
C
U.S. 2005
Total
Primary
Online HH Market
D
E
Mass
Market
F
Canada 2008
Total
Primary
Mass
Online HH Market Market
G
H
I
13%
28% C
2%
13% G
28% F
2%
9%
26% I
2%
15%
29% C
4%
14%
26% F
4%
12%
25% I
7%
15%
29% C
4%
—
—
—
11%
27% I
3%
(n=471)
(n=1,834)
(n=921)
(n=913)
(n=649)
(n=455)
(n=194)
(n=1,849) (n=1,378)
Lack of interest because of issue around:
• Set up - 51%,
• People in the mass market are technology challenged
• People are overwhelmed by dealing with technology at
work and home
Family Ecosystem Continued
Maximum Total Addressable Market (TAM)
for Family Mini-Concepts
U.S. 2008
Total Online HHs
(n=319)
Canada 2008
Total Online HHs
(n=143)
Energy-saving
power strip
42%
36%
Programmable
thermostat
39%
35%
Home zone sensors
37%
31%
Professional home
network installation
36%
33%
Remotely administered
home network
repair services
35%
32%
Home network phone
& on-site support
32%
28%
Remotely
accessible door lock
32%
28%
Wireless
appliance monitor
31%
28%
Remote A/V equipment &
home lighting control
30%
22%
Service combines
contact list for
home & cell phones
25%
25%
If I buy or rent it, I want to watch it
anywhere
Sling Box
Home Projection
Portables
Mobile
Car A/V
Content Aggregator
Home Theater
Media Center
Media Extenders
Slide Courtesy of Entertainment Technology Center @ USC
Gaming
Entertainment Ecosystem
Connected Home
Foundational Technologies
U.S. 2008
Total Online
HHs
(A)
Broadband Internet
2 or more computers
87%
n=1,829
B
58%
B
n=1,849
Home Network
43%
B
n=1,761
U.S. 2005
Total Online
HHs
(B)
Canada 2008
Total Online
HHs
(C)
n=1,824 70%
n=628
90%
53%
54%
n=1,834
n=649
28%
n=1,768
40%
n=620
Entertainment Ecosystem continued
Ownership of Key Multimedia Technologies
Customized
Universal remote
DVR
High-definition
DVD player
(standalone or in
other device, net)
29%
NA
29%
21%
24%
23%
(n=60
4)
(
n=618)
(n=21
1)
(n=60
4)
19%
(n=60
4)
11%
HDTV
Media server
B
(n=60
4)
3%
(n=60
4)
TV with
built-in Internet
connection
3%
Fiber-optic
TV service
2%
U.S. 2008 Total
Online
HHs (A)
(n=26
5)
(n=60
4)
(n=21
1)
NA
18%
5%
13%
(n=61
0)
(n=21
1)
(n=21
1)
Built-in home theatre/
surround sound
36%
NA
NA
7%
(n=21
1)
5%
(n=88)
NA
U.S. 2005 Total
Online
HHs (B)
0%
(n=21
1)
Canada 2008 Total
Online
HHs (C)
Purchased with Homes
Built in 2000 or Later
Total U.S. and Canada
n=60
Entertainment Ecosystem Interest in
Audio Entertainment
Interest in Listening to Internet Radio
at Home by Room
2%
14%
Kitchen
1%
4%
8%
Other
Dining
room
Bedroom
12%
24%
24%
12%
Family room
8%
Home office
or den
16%
17%
27%
Living room
29%
U.S. 2008 Total Online
HHs (n=282)
Canada 2008 Total Online
HHs (n=98)
What Ecosystem is most interested
in Smart Home/Connected Home?
• Answer the Career Ecosystem
• This is a Ecosystem of people who work from home
at least part time or telecommute
• They use technology differently and are more likely
to be using technology in a early web 3.0
environment to solve problems
U.S. 2008
Total
Online HHs
(n=618; A )
Works at Home
Outside Regular
Business Hours
Self Employed
U.S. 2005
Total
Online HHs
(n=604; B )
Canada 2008
Total
Online HHs
(n=215; C )
52% B
43%
47%
15%
14%
15%
Career Ecosystem-Work at Home
When working from home, in which room of the house do you typically work?
3%
2%
8%
2%
4%
22% BC
Kitchen
Dining
room
13%
Bedroom
5%
2%
9% B
1%
Family room
43%
15%
Home office
or den
57% A
15%
47%
20%
Living room
21%
U.S. 2008 Total
Online HHs (n=346; A)
U.S. 2005 Total
Online HHs (n=310; B)
QC48. Letters denote statistically significant differences among segments.
Canada 2008 Total
Online HHs (n=97; C)
CABA’s Connected Home Research
Council - Successful Projects
1. Home Networking Study
2. Digital Youth Study
3. Laundry Time
4. Digital Kitchen
5. Senior Living
6. Interactive Television & Advertising Study (IPTV)
7. Microbusiness & Small Business Managed
8. Services Needs Assessment Study
9. Going Green – Energy Efficiency
10. State of the Connected Home Market Study
11. It’s Just Magic!
12. Connected Home User Interface
13. Video Convergence
Complimentary Research Report:
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