The Connected Home: Are You Ready?€¦ · machines, meters, sensors, mobile communication devices,...

Virtual Round Table Series

2017

The Connected Home: Are You Ready?

Rich BinsaccaDirector + Chief CommunicatorHousing Innovation Alliance

YOUR HOST

Rich BinsaccaDirector + Chief Communicatorrich@housinginnovation.org412-925-1227

AGENDA

Why we’re doing thisWhat’s driving itHow we’re doing itWhat we’ve found (so far)How do you respond?Q+AWhat’s next?The Housing Innovation Alliance

Why We’re Doing This

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?

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

WHY WE’RE DOING THIS

WHAT’S DRIVING IT?

Connected Home Drivers• Connected consumers

Connected Home Drivers• Connected consumers • Convenience + savings

WHAT’S DRIVING IT?

Connected Home Drivers• Connected consumers • Convenience + savings• Technological advancements

WHAT’S DRIVING IT?

WHAT’S DRIVING IT?

Connected Home Drivers• Connected consumers • Convenience + savings• Technological advancements• Data analytics + leverage

WHAT’S DRIVING IT?

Connected Home Drivers• Connected consumers • Convenience + savings• Technological advancements• Data analytics + leverage• New players

How We’re Doing It

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.

HOW WE’RE DOING IT

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

HOW WE’RE DOING IT

Interviews• Builders• Solution providers• Researchers• Other industry experts

What We’ve Found

WHAT WE’VE FOUND

There are lots of connected “things” …

WHAT WE’VE FOUND

0 5 10 15 20 25 30 35 40 45 50

Automatic shading

Motion-sense lighting

Garage door openers

Light bulbs

Video intercom/doorbell

Alarms/Detectors

Security Cameras

Lighting

Thermostats

Most Popular Connected Home DevicesPercent installed during a recent renovation

Source: U.S. Houzz Smart Home Trends Study, 2016

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 managementVivint Smart Home

Source: builderonline, September 2016

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

WHAT WE’VE FOUND

0 5 10 15 20 25 30 35 40

Just not interested

Too expensive

Concerns about privacy

Don't see/understand the benefits

Concerned technology will be outdated

Just don't know enough about it

Too glitchy

Too difficult to use

Could not find the right installer

Could not find the right product

Why Not a Connected Device?Reasons given for not upgrading to a connected device

Source: U.S. Houzz Smart Home Trends Study, 2016

WHAT WE’VE FOUND

0 10 20 30 40 50 60 70 80

Phone/cable company

Home builder

A/V retailer

Computer/IT company

Security company

Expectations Among Device Providers

Expected to Provide Trusted to Do a Good Job

Source: TecHome Builder Market Pulse Survey, Fall 2016

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

WHAT WE’VE FOUND

Source: McKinsey & Company: The Connected Home Market

0 10 20 30 40 50 60 70 80 90 100

Afraid of being hacked

Won't purchase for privacy concerns

Concerned about identity theft

Concerned about privacy

Consumer Security ConcernsPercentage of people responding

WHAT WE’VE FOUND

Connected System Nothing/Not Interested

$99 - $499 $500 - $999 > $1,000

Monitored security, remote door locks, remote controlled thermostat, front door camera

42% 36% 12% 9%

Remote-controlled window shading56% 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%

Pricing Thresholds For smart devices + systems

Source: AE Ventures Connected Home Consumer Study, Fall 2016

WHAT WE’VE FOUND

WHAT WE’VE FOUND

Next-Gen Technologies• Automated device set-up• Faster broadband speeds• Voice-activated controllers• Multiple connections

Proprietary PlatformCellularBluetoothWi-Fi

How Do You

Respond?

HOW DO YOU RESPOND?

The Builder’s Role• Provide the backbone

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

Q+A

What’s Next?

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?

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 16 @ 11am EST

WHAT’S NEXT?

INNOVATION SUMMITApril 25-26 | Denver, CO

Collaborative Insights for Housing Innovation

www.housinginnovationalliance.com

Thank You!

Rich Binsaccarich@housinginnovation.org

412-925-1227