The Connected Home

Connected homes, smart homes, and home automation are terms often used interchangeably about a wide range of solutions for controlling, monitoring and automating functions in the home. While opinions vary regarding the subtle differences between these terms, one thing is for certain — millions of homes in the US are becoming "connected" or "smart" with a rapid increase in the number of homeowners bringing connected devices into their homes. The concept of home automation isn’t new, but we are seeing a steady wave of adoption amongst homeowners mainly because it is no longer cost prohibitive. Partly, due to the advancements in interactive technologies and attractive pricing models, the smart home market is gradually gaining broader consumer awareness. This eBook will discuss: How the disruptive potential of connectivity is changing our lives Market trends shaping the smart home landscape Application areas in smart home automation

Table of Contents An Introduction to the Connected Home 3 IoT is Changing the Way We Live 4 An Overview of the Smart Home Market 7 IoT Technologies for the Smart Home 10 Smart Home Applications 15 Ready to Join the Smart Home Revolution? 19 3 An Introduction to the Connected Home Connected homes, smart homes, and home automation are terms often used interchangeably in reference to a wide range of solutions for controlling, monitoring and automating functions in the home. While opinions vary regarding the subtle differences between these terms, one thing is for certain — millions of homes in the US are becoming "connected" or "smart" with a rapid increase in the number of homeowners bringing connected devices into their homes. The concept of home automation isn’t new but we are seeing a steady wave of adoption among homeowners mainly because it is no longer cost prohibitive. Partly, due to the advancements in interactive technologies and attractive pricing models, smart home market is gradually gaining broader consumer awareness. An ideal smart home automation would feature seamlessly integrated and interoperable security systems, home appliances, and electronic devices centrally and/or remotely controlled from a single device. While interoperability continues to be one of the major roadblocks in the way of mass adoption of smart home solutions, efforts are going on to improve interoperability and align various wireless standards, such as ZigBee and Z- Wave, with the aim to simplify how IoT sensors and devices interact with each other. This e-book will discuss how the disruptive potential of connectivity is changing our lives, which market trends are shaping up the smart home landscape and what are some application areas in smart home automation. "Every home in the United States will be connected in the next five to ten years." — McKinsey, 2016 The growing demand for high efficiency and better value for life are driving us towards automation. Just a few years back, the term ‘automation’ was limited within the professional periphery. Machines required human instructions and specific commands to perform in a pre-determined pattern, without any intuitive responsiveness. Due to this limitation, not only efficiency level remained low but also to match growing market demand, people were forced to indulge into manual efforts that apart from increasing the number of errors also lowered the average value for life. 4 "IoT is transforming the everyday physical objects that surround us into an ecosystem of information that will enrich our lives. From refrigerators to parking spaces to houses, the IoT is bringing more and more things into the digital fold every day, which will likely make the IoT a multi-trillion dollar industry in the near future." — PricewaterhouseCoopers report, Sensing the Future of the Internet of Things, 2015 IoT is Changing the Way We Live The inception of the Internet of Things (IoT), also frequently referred as connected devices, has revolutionized the traditional perception about efficiency and value for life both in professional and personal settings. In contrast to the traditional scenario, IoT or connected devices are intuitive and demonstrate the ability for behavioral, contextually-relevant interaction, powered by real-time data analytics. The Promise of IoT: Improved Efficiency, Safety, and Quality of Life The evolving idea of smart city is one of the great testaments of how IoT is transforming lives. At the core of IoT devices, exists sensors or actuators that not only collect user as well as usability data constantly but also through smart analytics develop an intelligent system that adds situational value to the information gathered. For instance, to prevent unwanted traffic congestion during rush hour, the system would send real-time, valuable insights to traffic system administrators concerning which alternate lanes could be used to reduce pressure at a particular location within the city. Based on the same analytics system, a smart traffic system can analyze large volume of information from different modes of communication, such as trains, vehicles, public transports and inform building administrators that they should be activating extra elevator paths to avoid unwanted gathering at entry points. Car users will receive intuitive notifications on their mobile handsets, suggesting which route they should follow to find a convenient parking spot at the earliest. 5 Abundant Growth Opportunity Awaits Smart home or connected home has already become quite a familiar idea among modern families. According to research by Park Associates, nearly one-third of U.S. broadband households have reported being familiar with smart home devices. 7 “2017 will be the year of the smart home.” — CNBC report, 2017 An Overview of the Smart Home Market However, the shift from the level of ideation to real-world adoption has not yet commenced in the same pace that original equipment manufacturers (OEMs) anticipated. According to the top market analysts, the smart home market is currently trapped at a stage that exists between early adoption and mass adoption phase. The onus is entirely on the OEMs in terms of educating consumers about the value that smart home equipment offers. The Year of the Smart Home The much anticipated change at the level of aggressive marketing—according to several market experts—is already happening. IHS Markit reported that in the 2016 fiscal, OEMs shipped over 80 million smart home devices across the globe. Compared to 2015 fiscal, the smart home market performance in 2016 witnessed 64 percent increase. 8 Provided the growth rate remains same even in the current fiscal, owing to OEMs right marketing initiatives, analysts are of opinion that 2017 will be the banner year for the smart home sector. It has been further estimated that by the end of 2023 the smart home market would be worth $ 137.91 Billion. However, there are several factors that equipment manufacturers must take into account in order to become a prominent part of the booming market. Factors to Consider 1. Consumer Education Contenders in the smart home market must devise intuitive strategic approaches that would encourage consumers to opt for their offerings. According to the findings, due to lack of adequate consumer education efforts, buyers are confused what values they would receive against the money invested for smart home appliances. 2. High Cost of Products High cost of the products is another important factor, deterring growth of the smart home market. Companies must find the right avenues that would help them reduce production cost of the offerings. It will result into more affordable connected home products alongside the guarantee of high-quality performance. 3. Device Replacement Times Shortening the device replacement services is another important step that OEMs must implement within their operational cycles. In case of a broken or faulty device, consumers are usually forced to wait for a long time. Quickening the process would encourage them to opt for right product manufacturing partners. 4. Interoperability Issues Smart device interoperability issues are creating major obstacles in the path of mass adoption of these appliances. Owing to this, consumers are confused about selecting the suitable smart home devices and are facing manageability issues. Without solving this problem, OEMs cannot expect swift growth in the market. According to Harry Wang, Director of Mobility and Apps Research, Parks Associates, “[a] close collaboration among smart home ecosystems could minimize the danger of a fragmented user experience and bolster healthy growth of this exciting market.” 9 Though smart home systems and devices are still at an early stage of adoption, almost regularly we come across news updates, highlighting integration of new features that aim at adding more convenience to users’ lives. Owing to these evolving attributes, not only lives becoming simpler but also adhering to the goals of environmental suitability has become simpler. Market research reports are indicating that by 2020, more than 190 million smart home devices will be in use across the globe. The OEMs of smart home solutions are hopeful that by 2025, every home will feature at least one smart home device. These companies are further suggesting that from 2030 onwards, the idea of smart home would be as popular as smartphones are today. 10 “The truth is, homes change over time — and technology has to adapt, not try to do everything at once.”— Tony Fadell, Founder, Nest Labs IoT Technologies for the Smart Home Smart home appliances or devices are not just limited to washers, refrigerators, dryers or ovens, but also their applications may extend in the areas of home safety and security systems. In today’s smart buildings, we witness the smart application of sensor-based alarm system, video surveillance and monitoring devices. However, smart home systems are witnessing the highest growth potential for purposes related to energy conservation, such as smart thermostats or lighting systems. Smart home appliances, used for different purposes, such as surveillance, air conditioning, room temperature control or monitoring and reporting of health condition, are powered by different types of IoT technologies. They can be broadly classified into: • Customer-premises device and gateway • Sensory and movement recognition • Device data collection and management • Defence against evolving security threats • Natural language, speech, and computer vision • Data analytics • End-to-end data and device protection 11 Customer-Premised Device and Gateway The term, customer-premised device or equipment (CPE) refers to a terminal that is located at the user’s end and is connected with a specific telecommunication network, offered by a carrier. The point of connection is referred as demarcation or demarc point. The most common examples of CPE are network switches, telephones, routers, set-top boxes, adapters and residential gateways, among others. A residential gateway is a device that assists in setting up the networking path for all connected devices within a home, premise or apartment. Sensory and Movement Recognition The application of sensory and movement recognition technology is widespread in security surveillance and remote healthcare monitoring devices. Powered by proprietary gesture recognition algorithms, connected devices used for the aforementioned purposes immediately recognize the difference in movement pattern. So, if there is a intruder in your apartment while you are away, the surveillance system will intuitively send an alert to the authorities. Based on the same technology, remote health monitoring devices intuitively identifies any abnormality of movement of elderly people living alone. They immediately send an alert to the doctors and caregivers so that the right care can be administered at the earliest. Device Data Collection and Management A reliable connected device data collection and management system is of paramount importance to understand whether the components in your smart home system are functioning correctly. Owing to a comprehensive data collection and management system, your system administrator can easily understand whether the connected devices are performing optimally or they are experiencing any kind of technological glitches. Based on these findings, your system administrator can take the right action at the earliest to ensure that you continue receiving quality service without major outage or interruption. 12 Defense Against Evolving Security Threats No smart home network is entirely safe because of the evolving virus and malwares that hackers are constantly trying to inject. Leakage of confidential information may lead to not only major security breach but also malfunctioning of connected devices. Critical monitoring of both devices as well as connectivity network, therefore, is required on the backend. Your device manager and network administrators should set up 24/7 monitoring system so that they can identify potential security threats in real-time and take corrective actions to eradicate the issues. Natural Language, Speech, and Computer Vision Users should be able to train and customize the devices in terms of identifying their natural accent. While smart home appliances and connected devices come preloaded with traditional language support, they must also have the faculty and intuitiveness to understand the difference in users’ speech, accent and native language. Many experts in the smart home market are of opinion that computer vision is instrumental in overcoming the limitations, associated with national language processing and speech identification. Due to this, the implementation of computer vision is gradually rising in connected and smart home devices. Data Analytics In order to guarantee reliable functioning of smart home systems, they must be powered by a robust data analytics methodology. The large sets of user data should not only be stored in a cloud storage system but also must be analyzed to understand the behavioral traits of a user. In this way, the device will intelligently understand the action required of it. For instance, if you come back home at 7:45 pm every evening and by 7:50 pm, you turn on the air conditioning system, data analytics will enable your smart home set up to intuitively turn it on at the same time every day. 13 End-to-End Data and Device Protection Guaranteeing users’ privacy and enhancing the quality of life are the core responsibilities of smart home service providers. Therefore, they must ensure that not just the smart home network but also the devices integrated with the system are encrypted end-to-end. Owing to this, even service providers cannot access user data and thereby the chance of leaking of confidential information reduces. It is essential that while setting up smart home infrastructure and manufacturing connected appliances, service providers and OEMs take into consideration the above-mentioned factors. The rate of adoption of smart home devices will increase once end-users feel confident that not only they are receiving the best value for money through device performance but also their personal lives are protected. 14 As more devices become connected to wireless technologies and IoT, the smart home will become more enriched in features and capabilities. Some of the most common smart home automation applications include: • Lighting control and regulation • Security and surveillance • Heating, air-conditioning systems and ventilation • Blind and roller shutter control • Central automation and remote control technology • Energy and consumption management 15 "Everyone wants into your's gaining acceptance — in everyday life — to technology in the house." — Fred Bargetzi , CTO, Creston Smart Home Applications Lighting Control and Regulation This is the most basic application of home automation. Lighting control allows the brightness of electric bulbs to be remotely adjusted up or down, and also switched off or on, either on-demand or via a preset timer. Both indoor and outdoor light control systems are available. Besides convenience, which is a major advantage, these solutions also deliver security and potential energy saving benefits. Security and Surveillance One of the most common safety solutions, video surveillance systems include indoor and/or outdoor digital cameras that stream video to home servers and remote clients. These are designed to alert or warn the homeowner against unauthorized entry. Many connected home products enable users to remotely check smart door locks and garage door controllers. Users can also receive alert messages via the cloud doors when doors are opened. Features like remote unlocking or re-locking are also available and are useful in situations where the homeowner is unable to unlock or open doors physically. Smart alarms that detect water, smoke or gas can be configured to send remote alerts. 16 Heating, Air-Conditioning Systems and Ventilation Smart thermostats control home heating, ventilation and air conditioning (HVAC) systems. These devices can be configured to change home temperatures at different times of day. For instance, they can be programmed to increase coolness during the day. This not only maximizes comfort but also helps to save energy. Heating, air-conditioning and ventilation to a coherent and efficient climate control. Blind and Roller Shutter Control Sensor controlled roller shutters, windows and blinds allow optimal lighting conditions and create an improved climate control in the room. Motion sensor-integrated connected devices can also be used to add intelligence into home environments, such as triggering window shutters to open up when someone walks into a room. 17 Central Automation and Remote Control Technology Central access features are an essential part of smart buildings due to the diverse control tasks as well as regular maintenance that they help deliver. These features help to centrally manage usage and operating functions ensuring improved convenience and security. Energy and Consumption Management These applications enable homeowners to record and control their energy consumption and metering functions. With features such as demand controlled lighting, presence detection, lighting regulation, room temperature monitoring, and HVAC controls, homeowners can reduce their utility costs and use energy appliances as economically as possible. 18 Ready to join the Smart Home Revolution? Home automation is a booming market and, with the integration of IoT devices, this is an area that anticipates massive growth and investment. As a field that’s witnessing increased entry of innovators and OEMs, home automation is fast becoming a crowded and competitive landscape. System integrators and electrical installers worldwide will gain from including smart home automation in their service portfolio as thousands of satisfied customers enjoy the functional benefits that are provided by these solutions. The demand for smart home products are soaring and by including them in your service offerings, you are likely to benefit from a highly profitable revenue stream. WPGA can help you take advantage of the smart home revolution. With our vast network of leading IoT solution providers and their latest product offerings on our shelf, we are your ideal partner in taking your home automation projects to the next level. Visit our website to know more or contact us anywhere at our nationwide offices with your specific requirements. 19 [email protected] WPG Americas Inc. (WPGA) is part of WPG Holdings, one of the largest global electronics distributors. Whether you require a proximity sensor or a total ‘Edge to Enterprise’ solution our leading edge supplier portfolio and dedicated Intelligent Connectivity team can help you with whatever IoT design / production needs you may have. 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Limited Time Oer: Lattice Embedded Vision Development Kit Available for $199 WPG AMERICAS’ STRATEGIC SUPPLIER APPROACH ALLOWS US TO STAY NIMBLE IN AN EVER-CHANGING TECHNOLOGICAL WORLD. From design to delivery, we harness the latest innovati ons from industry leaders and connect them with our leading-edge design engineers and supply chain services, off ering a complete soluti on in support of your ideas. Our focused supplier linecards target specifi c applicati on areas; from lighti ng and embedded displays, to power, storage and intelligent connecti vity soluti ons. Benchmark of Distributi on. Visit the WPGA community at [email protected] 888.WPG.8881 Intelligent Connectivity Lighting Storage Power PowerEmbedded To learn more about the latest and best-in-class smart home automation products, contact WPG Americas at 408-392-8100 or visit About WPG Americas WPG Americas Inc. is a member of WPG Holdings, the largest electronics distributor in Asia. 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