The Connected Home: Are You Ready?
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1 Virtual Round Table Series The Connected Home: Are You Ready? 2017 Rich Binsacca Director + Chief Communicator Housing Innovation Alliance
2 YOUR HOST Rich Binsacca Director + Chief Communicator rich@housinginnovation.org
3 AGENDA Why we re doing this What s driving it How we re doing it What we ve found (so far) How do you respond? Q+A What s next? The Housing Innovation Alliance
4 Why We re Doing This
5 WHY WE RE DOING THIS Builders are asking What s my opportunity? What s my role? Who can I turn to for support? What are the risks? Is now the right time?
6 WHY WE RE DOING THIS Develop a baseline of relevant information about the Connected Home and deliver intelligence and analysis for the Alliance community and the U.S. housing industry Current state of IoT for housing Trends + trajectories Real-world case studies
7 WHAT S DRIVING IT? Connected Home Drivers Connected consumers
8 WHAT S DRIVING IT? Connected Home Drivers Connected consumers Convenience + savings
9 WHAT S DRIVING IT? Connected Home Drivers Connected consumers Convenience + savings Technological advancements
10 WHAT S DRIVING IT? Connected Home Drivers Connected consumers Convenience + savings Technological advancements Data analytics + leverage
11 WHAT S DRIVING IT? Connected Home Drivers Connected consumers Convenience + savings Technological advancements Data analytics + leverage New players
12 How We re Doing It
13 DEFINITION OF KEY TERMS The Internet of Things (IoT) is defined as machines, parts of machines, meters, sensors, mobile communication devices, personal computers, retail goods and wearables that interconnect among each other and/or by human interaction, enabling them to autonomously exchange or share data. A Connected Home (or Smart Home) is defined as a dwelling that features or offers at least one product or system, such as security or indoor comfort, that is connected to the Internet and controlled by the homeowner from the device itself, a fixed panel, personal computer and/or mobile device.
14 HOW WE RE DOING IT
15 HOW WE RE DOING IT Survey: Builders, Buyers + Smart Homes 300+ homebuilders Builder interest + concerns Buyer interest + concerns Smart home features, costs + markup Value to the builder Open until March 8
16 HOW WE RE DOING IT Interviews Builders Solution providers Researchers Other industry experts
17 What We ve Found
18 WHAT WE VE FOUND There are lots of connected things
19 WHAT WE VE FOUND Security Cameras Alarms/Detectors Video intercom/doorbell Light bulbs Garage door openers Motion-sense lighting Automatic shading Most Popular Connected Home Devices Percent installed during a recent renovation Thermostats Lighting Source: U.S. Houzz Smart Home Trends Study, 2016
20 WHAT WE VE FOUND I think there s a segment of the population that likes to have things already baked after moving in. But another segment of the population just wants to have what we call a single point solution, meaning they just want to buy a doorbell camera and then customize their system themselves as they go. Trevor Lambert, senior director of brand management Vivint Smart Home Source: builderonline, September 2016
21 WHAT WE VE FOUND 70% People more likely to buy another smart home product after buying their first one Source: Coldwell Banker Real Estate Smart Home Marketplace Survey, Jan. 2016
22 WHAT WE VE FOUND Could not find the right product Could not find the right installer Just don't know enough about it Concerned technology will be outdated Don't see/understand the benefits Why Not a Connected Device? Reasons given for not upgrading to a connected device Too difficult to use Too glitchy Concerns about privacy Too expensive Just not interested Source: U.S. Houzz Smart Home Trends Study, 2016
23 WHAT WE VE FOUND Expectations Among Device Providers Security company Computer/IT company A/V retailer Home builder Phone/cable company Expected to Provide Trusted to Do a Good Job Source: TecHome Builder Market Pulse Survey, Fall 2016
24 WHAT WE VE FOUND Today, most connected homes use at least two or three protocols across various silos, each device with its own apps and protocol, with no standardization. Source: IoT Daily, Connecting the Disconnected Smart Home, Feb. 2017
25 WHAT WE VE FOUND Consumer Security Concerns Percentage of people responding Concerned about privacy Concerned about identity theft Won't purchase for privacy concerns Afraid of being hacked Source: McKinsey & Company: The Connected Home Market
26 WHAT WE VE FOUND Pricing Thresholds For smart devices + systems Connected System Monitored security, remote door locks, remote controlled thermostat, front door camera Remote-controlled window shading Nothing/Not Interested $99 - $499 $500 - $999 > $1,000 42% 36% 12% 9% 56% 33% 7% 5% Three-zone/room audio including in-wall speakers 59% 26% 8% 7% Precise indoor climate control, including temperature, humidity and air quality via remote control 41% 40% 10% 10% Energy use monitoring of major appliances and devices and guidance for energy savings 46% 39% 8% 6% Source: AE Ventures Connected Home Consumer Study, Fall 2016
27 WHAT WE VE FOUND
28 WHAT WE VE FOUND Next-Gen Technologies Automated device set-up Faster broadband speeds Voice-activated controllers Multiple connections Wi-Fi Bluetooth Cellular Proprietary Platform
29
30 How Do You Respond?
31 HOW DO YOU RESPOND? The Builder s Role Provide the backbone
32 HOW DO YOU RESPOND? The Builder s Role Provide the backbone Be an authority and a conduit Define needs & budget Seek partnerships on your terms
33 Q+A
34 What s Next?
35 WHAT S NEXT? Finish the survey Conduct 1-1 interviews Synthesize the data + identify key findings Present updated findings at the Innovation Summit Publish the findings + initiate discussions The Connected Home Phase 2?
36 WHAT S NEXT? Virtual Round Table #2: The Connected Business The impact of IoT on the homebuilding business New business models Managing big data + taking action Data security March 11am EST
37 INNOVATION SUMMIT April Denver, CO WHAT S NEXT?
38 Collaborative Insights for Housing Innovation
39 Thank You! Rich Binsacca
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