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
home...it'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
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