Smart Homes and Home Automation - 2nd Edition

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Nov 13, 2013, 10:23 ET

NEW YORK, Nov. 13, 2013 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Smart Homes and Home Automation – 2nd Edition

http://www.reportlinker.com/p01866567/Smart-Homes-and-Home-Automation-–-2nd-Edition.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Home_Building_and_Improvement

Smart homes and home automation are ambiguous terms used in reference to a wide range of solutions for controlling, monitoring and automating functions in the home. Berg Insight's definition of a smart home system requires that it has a smartphone app or a web portal as a user interface. Devices that only can be controlled with switches, timers, sensors and remote controls are thus not included in the scope of this study. Smart home systems can be grouped into six primary categories: energy management and climate control systems; security and access control systems; lighting, window and appliance control systems; home appliances; audio-visual and entertainment systems; and healthcare and assisted living systems.

North America is the most advanced region in the world for smart home solutions with an installed base of 3.5 million systems at the end of 2012. An estimated 0.7 million of these were multifunction or whole-home systems whereas 2.8 million were point solutions designed for one specific function such as climate control or security. As some homes have more than one smart system in use, the installed base represents a total of around 2.9 million smart homes. Market growth has been very strong during the first three quarters of 2013 and North America is on track to reach an installed base of 5.5 million smart home systems by the end of the year. Between 2012 and 2017 the installed base is forecasted to grow at a compound annual growth rate (CAGR) of 55.0 percent to reach 31.4 million smart home systems. Berg Insight estimates that the North American market was worth US$_1.6 billion (€ 1.2 billion) in 2012, including revenues from hardware, services and installation. The market is expected to grow at a CAGR of 42 percent between 2012 and 2017, reaching US$ 9.4 billion (€ 7.1 billion) in yearly revenues at the end of the forecast period.

The European market for smart home systems is still in an early stage and approximately three years behind North America in terms of penetration and market maturity. At the end of 2012, there were a total of 1.06 million smart home systems in use in the EU27+2 countries. Around 0.15 million of these systems were multifunction or whole-home systems whereas 0.91 million were point solutions. This corresponds to around 0.93 million smart homes when overlaps are taken into account. Market growth has been solid during the first three quarters of 2013 and Europe is on track to reach 1.45 million smart home systems by the end of the year. Berg Insight forecasts that the installed base of smart home systems in EU27+2 will grow at a CAGR of 56.0 percent in the next five years to reach 17.4 million systems by 2017. Smart home solution revenues in EU27+2 reached an estimated € 0.39 billion (US$ 0.52 billion) in 2012. The market is expected to grow at a CAGR of 46.0 percent bet ween 2012 and 2017 to reach € 2.6 billion (US$ 3.4 billion) at the end of the forecast period. Smart home solutions consist of a wide range of hardware and software technologies. As a result a complex ecosystem is emerging comprising whole-home solution vendors, product OEMs and smart home platform vendors. Traditional whole-home solution vendors such as Crestron, Control4, Gira and Jung are facing new competition as telecom operators, security service providers, energy companies and other vendors are entering the industry. This is leading to a rapid increase in consumer awareness which is benefitting all players. At the same time, the market is undergoing a major transformation. New entrants such as Vivint, ADT, Comcast and Vera Controls in North America as well as eQ-3 and SFR in Europe have already managed to establish themselves among the top five whole-home solution vendors in their respective regions. The product OEM category consists primarily of incumbents with decades of experience such as Honeywell, Whirlpool, ASSA ABLOY, Somfy, Philips and Sony. However, connectivity is giving birth to new device categories and redefined value propositions in several application areas such as interactive security and smart thermostats, enabling companies such as D-Link, Sonos, Belkin, Ecobee, Nest, and Numera to enter the market. The smart home software platform category is today led by specialized technology vendors such as iControl, Alarm.com and AlertMe. These vendors have primarily competed against in-house development efforts from smart home solution vendors, but are now also starting to face competition from large technology companies such as Arris, Amdocs and Technicolor that have entered the smart home platform market.

Highlights from the second edition of the report:

• Insights from 30 executive interviews with market leading companies.
• 360-degree overview of the smart homes & home automation ecosystem.
• Summary of industry trends in key vertical market segments.
• Statistical data on adoption of smart home systems in Europe and North America.
• Market forecasts lasting until 2017.
• Detailed reviews of the latest initiatives launched by industry players.
• Updated profiles of the key vendors on this market.

This report answers the following questions:

• Which are the main verticals within smart homes and home automation?
• What are the main drivers behind growth in Europe and North America?
• What are the main challenges and roadblocks towards widespread adoption?
• Which are the main verticals within smart homes and home automation?
• What are the business models and channels-to-market of smart home vendors?
• How are product OEMs and whole home solution vendors positioning themselves?
• What home connectivity technologies are smart home system vendors betting on?
• What is the potential market size for cellular M2M in home automation?
• How will the global smart home market evolve in the next five years?

Who should buy this report?

Smart Homes and Home Automation is the foremost source of information about the emerging market for home applications connected to mobile networks. Whether you are a vendor, telecom operator, investor, consultant, application developer or government agency, you will gain valuable insights from our in-depth research.

Table of Contents

Table of Contents i

List of Figures vi

Executive summary 1

1 Smart homes, connected homes and home automation 3

1.1 Introduction 3
1.2 Types of home automation 4
1.2.1 Energy management and climate control systems 4
1.2.2 Security and access control systems 6
1.2.3 Lighting and window control systems 8
1.2.4 Home appliances 10
1.2.5 Audio-visual and entertainment systems 11
1.2.6 Healthcare and assisted living 12
1.2.7 Multifunction and whole-home automation systems 14
1.3 Home automation market segments 14
1.3.1 Mainstream houses and multi-family dwellings 16
1.3.2 The custom (luxury) segment 18
1.3.3 New homes versus existing homes 19
1.4 Channels to market 21
1.4.1 Professional installation 22
1.4.2 Retail 23
1.4.3 Service providers 24

2 Networks and communication technologies 27

2.1 Overview 27
2.1.1 Local versus cloud-based integration 27
2.1.2 Technology choices of product OEMs 28
2.1.3 Technology choices of whole-home solution vendors 30
2.2 Connectivity and interoperability standards 30
2.2.1 Bluetooth 31
2.2.2 DECT ULE 31
2.2.3 EnOcean 32
2.2.4 HomePlug 32
2.2.5 HomeGrid 33
2.2.6 INSTEON 34
2.2.7 Io-homecontrol 34
2.2.8 KNX 35
2.2.9 LonWorks 37
2.2.10 WAVE2M 37
2.2.11 Wi-Fi 38
2.2.12 X10 39
2.2.13 ZigBee 39
2.2.14 Z-Wave 40

3 Technology providers and OEMs 43

3.1 Market overview 43
3.1.1 Whole-home systems is an important distribution channel for OEMs 45
3.1.2 Point solutions are gaining traction among consumers 45
3.1.3 Connectivity enables new value propositions 46
3.1.4 New entrants challenge incumbents with connected experiences 47
3.1.5 Smart home platform vendors hold a central position in the value chain 48
3.2 Smart home platform vendors 49
3.2.1 Amdocs 50
3.2.2 Alarm.com 51
3.2.3 AlertMe 53
3.2.4 Arrayent 54
3.2.5 Arris 55
3.2.6 GreenWave Reality 56
3.2.7 iControl 58
3.2.8 M2M Solution 60
3.2.9 QGate 60
3.2.10 Savant Systems 61
3.2.11 Technicolor 62
3.3 Security and access control system vendors 63
3.3.1 ASSA ABLOY 64
3.3.2 Chamberlain 65
3.3.3 D-Link 65
3.3.4 FortrezZ 66
3.3.5 Hardware and Home Improvement 66
3.3.6 Tyco 66
3.3.7 UTC Climate, Controls & Security 68
3.4 Home appliances 68
3.4.1 Whirlpool 69
3.4.2 Electrolux 71
3.4.3 Bosch-Siemens 71
3.4.4 Samsung 72
3.4.5 LG Electronics 73
3.5 Lighting and window control system vendors 74
3.5.1 Philips Lighting 74
3.5.2 Osram 76
3.5.3 Leviton 77
3.5.4 Lutron 77
3.5.5 Somfy 78
3.5.6 View 79
3.5.7 CentraLite 80
3.6 Audio-visual and entertainment system vendors 80
3.6.1 Kaleidescape 81
3.6.2 Linn 81
3.6.3 Naim 81
3.6.4 Niles Audio 82
3.6.5 Sonos 82
3.6.6 Sony 83
3.6.7 Marantz 83
3.7 Energy management and climate control system vendors 84
3.7.1 Danfoss 85
3.7.2 Ecobee 86
3.7.3 Nest 87
3.7.4 Schneider Electric 90
3.7.5 Honeywell 90
3.7.6 Radio Thermostat Company of America 92
3.8 Healthcare and assisted living 93
3.8.1 Care Innovations 93
3.8.2 Doro 94
3.8.3 MobileHelp 95
3.8.4 Numera 95

4 Service providers and whole-home system vendors 97

4.1 Market overview 97
4.1.1 The European market 98
4.1.2 The North American market 100
4.1.3 Attach rates per application area in whole-home systems 101
4.2 Market segments and go-to-market strategies 102
4.2.1 Home automation finds success in professionally monitored security 104
4.2.2 Service providers experiment with fee-based home control 106
4.2.3 New freemium and non-subscription based solutions emerge 107
4.2.4 Traditional HA vendors will face challenges despite growth 108
4.2.5 Energy management presents attractive opportunities 109
4.3 Case studies 110
4.3.1 AT&T rolls out Digital Life in 45 markets 110
4.3.2 Belkin positions WeMo as an easily approachable smart home system 113
4.3.3 Control4 completes IPO valued at US$ 400+ million 115
4.3.4 Crestron Electronics maintains its positioning in the high end 117
4.3.5 Deutsche Telekom launches the ambitious QIVICON initiative 118
4.3.6 eQ-3 seizes a leading position in the European smart home market 120
4.3.7 Gigaset addresses the mass market with an innovative smart home system 123
4.3.8 Ingersoll Rand pioneers self-monitoring as a subscription 126
4.3.9 Loxone Electronics makes homes smarter with the Miniserver 128
4.3.10 SFR gains traction in France with a self-monitored security service 129
4.3.11 Telecom Italia enters the smart home market through Energy@home 132
4.3.12 Vivint leads the US smart home market 134

5 Market forecasts and conclusions 139

5.1 Market trends and analysis 139
5.1.1 Greater consumer awareness benefits all players 140
5.1.2 Lower price points opens the doors to the mass market 141
5.1.3 The OS of the smart home is moving to the cloud 141
5.1.4 Open versus closed smart home ecosystems – getting the timing right 142
5.1.5 Cellular M2M in the smart home market 143
5.2 Europe 145
5.2.1 Revenues 146
5.2.2 Shipments 148
5.2.3 Installed base 150
5.3 North America 152
5.3.1 Revenues 153
5.3.2 Shipments 155
5.3.3 Installed base 157

Glossary 159

List of Figures

Figure 1.1: Examples of energy management and climate control devices 5
Figure 1.2: Annual energy bill, single-family detached home in the US 6
Figure 1.3: Example of an alarm system 7
Figure 1.4: Examples of security and access control systems 8
Figure 1.5: Examples of lighting and window control systems 9
Figure 1.6: Philips HUE lighting system 10
Figure 1.7: LG smart refrigerator interface 11
Figure 1.8: Sonos audio system 12
Figure 1.9: Examples of healthcare and assisted living systems 13
Figure 1.10: Types of markets for home automation 15
Figure 1.11: Households, dwelling types and homeownership by country (NA 2011) 16
Figure 1.12: Households, dwelling types and homeownership by country (EU23+2 2010) 17
Figure 1.13: Definition of luxury versus ultra-luxury home 18
Figure 1.14: Existing homes and housing starts (North America 2010–2011) 19
Figure 1.15: Existing homes and housing starts (EU27+2 2010–2011) 20
Figure 1.16: Channels to market 21
Figure 2.1: Examples of technology choices by product OEMs 28
Figure 2.2: Examples of technology choices by whole-home solution vendors 29
Figure 3.1: Installed base per application area (EU27+2 and NA Q3-2013) 44
Figure 3.2: Examples of incumbents and new entrants by application area 47
Figure 3.3: Whirlpool's My Smart Appliances app 70
Figure 3.4: Philips Hue Starter Kit 74
Figure 3.5: Philips Hue app 75
Figure 3.6: Marantz Remote App 84
Figure 3.7: Nest thermostat 89
Figure 4.1: Penetration of whole-home automation systems (EU27+2 and NA Q3-2013) 97
Figure 4.2: Competitive landscape for service providers 98
Figure 4.3: Top whole-home system vendors (EU27+2 Q3-2013) 99
Figure 4.4: Top whole-home system vendors (NA Q3-2013) 100
Figure 4.5: Attach rates in whole-home systems (EU27+2 and NA Q3-2013) 101
Figure 4.6: Competitive landscape for service providers 103
Figure 4.7: Monitored small alarm systems by country (EU27+2 2011) 105
Figure 4.8: AT&T Digital Life packages 111
Figure 4.9: Belkin's WeMo product family 114
Figure 4.10: Control4 attach rates per application area 116
Figure 4.11: MAX! smart heating control system 122
Figure 4.12: Gigaset Elements app and Starter Kit 124
Figure 4.13: SFR's smart home packages 130
Figure 4.14: Home by SFR app 131
Figure 4.15: Vivint's product offering 135
Figure 5.1: Smart home penetration and installed base (EU27+2 and NA 2012–2017) 139
Figure 5.2: Cellular connections in the smart home market (2012–2017) 144
Figure 5.3: Market overview (EU 27+2 2012–2017) 145
Figure 5.4: Smart home revenues (EU27+2 2012–2017) 146
Figure 5.5: Market share by whole-home segment (EU27+2 2012–2017) 147
Figure 5.6: Shipments per application area (EU27+2 2012–2017) 149
Figure 5.7: Installed base per application area (EU27+2 2012–2017) 151
Figure 5.8: Market overview (North America 2012–2017) 152
Figure 5.9: Smart home revenues (North America 2012–2017) 153
Figure 5.10: Market share by whole-home segment (North America 2012–2017) 154
Figure 5.11: Shipments per application area (North America 2012–2017) 156
Figure 5.12: Installed base per application area (North America 2012–2017) 158