Understanding the Connected Home Market. Ron Zimmer, President & CEO Continental Automated Buildings Association September 1, 2009

Transcription

1 Understanding the Connected Home Market Ron Zimmer, President & CEO Continental Automated Buildings Association September 1, 2009

2 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

3 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

4 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.

5 How do we connect all of this stuff? TV TV DMA Thin Set top Touch Panels Remote Home Uber Set top TV Modem VoIP Connected TV IP Camera USB Storage Offsite Storage HSS

6 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

7 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

8 Connected Home Research Council (CH RC) Members Advisory Board Members (6): Affiliate Members (17):

9 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.

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11 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 3 rd 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

12 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:

13 The Realities Appeal of Connected Home Concept Total Online HHs U.S U.S Canada 2008 Total Total Primary Mass Primary Mass Prim ary Online Online Market Market Market Market Market HHs HHs A B C D E F G H I Mass Market Appeal (Q14B) Definitely/somew hat appealing (6 7) 23% G 51% HC 2% I 22% G 51% HF 1% 14% 44% I 0% Might or might not be appealing (3 5) 61% D 48% 71% FB 57% 48% 63% E 64% D 56% BE 68% H Definitely not/somew hat not appealing (1 2) 16% 0% 28% B 21% A 1% 36% CE 22% A 0% 32% H Base (n=1,849) (n=1,378) (n=471) (n=1,834) (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.

14 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 Programmable thermostat 60% 59% Remodel New construction House built during the last housing bubble Built in high speed Internet throughout the home Structured wiring 56% 45% Home energy monitoring/control 18% Centralized lighting control 12%

15 Family Ecosystem Com puter Behavior Hom e Netw ork U.S U.S Canada 2008 Total Primary Mass Total Prim ary Mass Total Prim ary Mass Online HH Market Market Online HH Market Market Online HH Market Market A B C D E F G H I Have Hom e Netw ork Yes 43% D 53% EC 35% F 28% 40% F 19% 40% D 54% EI 33% F Base (n=1,761) (n=1,324) (n=437) (n=1,768) (n=899) (n=869) (n=620) (n=429) (n=181) Wireless Home Netw ork (Wi Fi) Wireless (Wi Fi) 74% DG 75% E 72% F 51% 56% F 43% 63% D 68% E 58% Base (n=841) (n=702) (n=139) (n=484) (n=339) (n=145) (n=266) (n=219) (n=47) Laptop in Hom e Netw ork Laptop in home netw ork 68% D 69% 67% F 60% 68% F 48% 66% 63% 69% F Base (n=880) (n=727) (n=153) (n=520) (n=358) (n=162) (n=288) (n=234) (n=54)

16 Family Ecosystem continued Interest in Fam ily Ecosystem Application Areas U.S U.S Canada 2008 Total Primary Mass Total Prim ary Mass Total Prim ary Mass Online HH Market Market Online HH Market Market Online HH Market Market A B C D E F G H I % Very Interested; Top 2 Box Using technology to help you automate or control basic home systems like lighting, heating, ventilation and air 13% 28% C 2% 13% G 28% F 2% 9% 26% I 2% conditioning (HVAC) in general* Using technology to streamline routine tasks like preparing meals, arranging family members schedules and paying 15% 29% C 4% 14% 26% F 4% 12% 25% I 7% bills in general Using technology for home security in general 15% 29% C 4% 11% 27% I 3% Base (n=1,849) (n=1,378) (n=471) (n=1,834) (n=921) (n=913) (n=649) (n=455) (n=194) 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

17 Family Ecosystem Continued Maximum Total Addressable Market (TAM) for Family Mini Concepts U.S Total Online HHs (n=319) Canada 2008 Total Online HHs (n=143) Energy saving power strip Programmable thermostat Home zone sensors 42% 39% 37% 36% 35% 31% Professional home network installation Remotely administered home network repair services Home network phone & on site support Remotely accessible door lock Wireless appliance monitor Remote A/V equipment & home lighting control Service combines contact list for home & cell phones 36% 35% 32% 32% 31% 30% 25% 33% 32% 28% 28% 28% 22% 25%

18 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 Gaming Media Center Media Extenders Slide Courtesy of Entertainment Technology USC

19 Entertainment Ecosystem Connected Home Foundational Technologies U.S Total Online HHs (A) U.S Total Online HHs (B) Canada 2008 Total Online HHs (C) Broadband Internet 87% n=1,829 B n=1,824 70% n=628 90% 2 or more computers 58% B 53% 54% n=1,849 n=1,834 n=649 Home Network 43% B 28% 40% n=1,761 n=1,768 n=620

20 Entertainment Ecosystem continued Ownership of Key Multimedia Technologies Customized Universal remote 29% (n=604) NA 29% (n=211) DVR 21% (n=604) 24% ( n=618) 23% (n=211) High definition DVD player (standalone or in other device, net) 19% (n=604) HDTV 11% B 5% 13% (n=604) NA (n=610) 18% (n=211) (n=211) Built in home theatre/ surround sound 36% Media server 3% (n=604) TV with built in Internet connection Fiber optic TV service 3% (n=265) 2% (n=604) NA NA NA 7% (n=211) 5% (n=88) 0% (n=211) Purchased with Homes Built in 2000 or Later Total U.S. and Canada n=60 U.S Total Online HHs (A) U.S Total Online HHs (B) Canada 2008 Total Online HHs (C)

21 Entertainment Ecosystem continued TV Activities Among those with Multimedia Players or Windows Media Center Capabilities Connect a personal media player to a TV (among those with multimedia players) Watch Internet TV on your TV using Windows Media Center Extender (among those with Vista or Media Center) 11% (n=129) 3% B (n=607) U.S Total Online HHs (A) 12% (n=52) 1% (n=184) Canada 2008 Total Online HHs (B) Played recorded TV programs from a DVR/PVR Streamed movies, video or photos from a computer to a TV Streamed movies, video, or photos from a game console to a TV Connected a personal media player to a TV Watch Internet TV on your TV using Apple TV Remotely accessed a DVR/PVR over the Internet to record or view programs Watch Internet TV on your TV using Windows Media Center Extender Used a social television service to see what your buddies are watching in real time and/or use Instant Messaging U.S Total Online HHs (n=604) Canada 2008 Total Online HHs (n=211) 23% 10% 5% 6% 1% 0% 1% 1% None of these 56%

22 Entertainment Ecosystem Interest in Audio Entertainment Interest in Listening to Internet Radio at Home by Room 2% 1% 4% 8% 14% 12% Kitchen Other Dining room Bedroom 24% 24% 12% Family room 8% Home office or den 16% 17% 27% Living room 29% U.S Total Online HHs (n=282) Canada 2008 Total Online HHs (n=98)

23 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 Total Online HHs (n=618; A ) U.S Total Online HHs (n=604; B ) Canada 2008 Total Online HHs (n=215; C ) Works at Home Outside Regular Business Hours 52% B 43% 47% Self Employed 15% 14% 15%

24 Career Ecosystem Work at Home When working from home, in which room of the house do you typically work? 3% 2% 8% 2% 4% Kitchen Dining room 22% BC 13% 5% Bedroom 2% 9% B 1% 15% 15% Family room Home office or den 43% 57% A 47% 20% Living room 21% U.S Total Online HHs (n=346; A) U.S Total Online HHs (n=310; B) Canada 2008 Total Online HHs (n=97; C) QC48. Letters denote statistically significant differences among segments.

25 Connected Home Market Location of Computers in the Home Location of Computers in the Home 11% 7% 6% 6% 6% 3% Kitchen Other Dining room 41% Bedroom 45% 16% Family room 13% 36% Home office or den 31% 30% Living room 33% 2% Basement 3% U.S Total Online HHs (n=282) Canada 2008 Total Online HHs (n=98)

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27 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

28 CABA Connected Home Council (CHC) OBJECTIVE The CHC works on residential and MDU (multiple dwelling unit) issues and opportunities that allow CABA to achieve its vision, mission and objectives. CHARTER The CHC will more specifically review opportunities, strategize, take action and monitor initiatives that relate to integrated systems and home automation in the residential and MDU sectors. COST Nothing (except be a CABA member in good standing).

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31 Complimentary Research Report:

32 Your Information Source for Home & Building Automation 1173 Cyrville Road, Suite 210 Ottawa, ON K1J 7S CABA (2222)