DECT ULE in the Smart Home An Analyst Assessment 29 th January 2013 Lisa Arrowsmith Associate Director - Connectivity Lisa.Arrowsmith@IHS.com
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Agenda Overview of the Smart Home Market Definition & Market Size Major Segments Key Application Areas Connectivity Opportunities in the Smart Home Fragmented Landscape Emergence of DECT ULE Conclusion & Critical Success Factors Q&A
Overview of the Smart Home Market
Definition & Market Size IHS defines a smart home as one in which features an in-home network built up of a series of nodes (such as sensors or actuators) and gateways, which communicate using predominantly low data-rate connectivity. Peer-to-peer communications (such as home entertainment remote controls) and traditional security systems are excluded from the scope of this segment, as are medical applications. A recent study from IHS, Connectivity Opportunities in the Smart Home, projects that annual shipments of smart home nodes will grow from 18.4 million units in 2012, to over 90 million in 2017, with more than 300 million nodes shipped in the period 2011 to 2017.
Major Segments By Application
Major Applications Energy Management Smart Thermostats Radiator Controls Environmental Sensors Smart Plugs In-home Displays Smart Appliances & A/C Other HAN Devices Home Monitoring Motion Sensors Magnetic Contacts Door Locks Others (alarm sensors, etc.) Lighting Ballasts Switches RF-enabled Bulbs Other Home Automation Motorized Connected Blinds Connected Shutters Connected Garage Door Openers Many Others Market Summary by Application Energy management exhibits wide adoption cross system-type (i.e., high-end/mass market home automation, demand-response & managed systems) Energy management market influenced by country-specific HAN deployments Home monitoring driven by managed system adoption; projected to demonstrate significant growth through forecast period. Managed system adoption showing regional differences. Traditional lighting systems show low, steady growth; significant market expansion from RF-enabled bulbs. Other home automation device market partially tied to highend/mass market system growth; relatively low, steady. Longer-term, cross-application functionality expected to be a pre-requisite to wide system deployment.
Connectivity Opportunities in the Smart Home
Fragmented Landscape A number of established & emerging technologies aiming to grow role in the smart home ecosystem:
Emergence of DECT ULE Two main components of a smart home : gateways & nodes. Discrete/Standalone Gateways Already established technologies offered in standalone gateways. Could be a more challenging area for DECT ULE in the long-term. Integrated Gateways Pre-existing traction of DECT technology with gateway OEMs & suppliers, and support for ULE technology in new chipsets. Smart Home Nodes As interest in gateway deployment grows, the establishment of a DECT ULE node ecosystem becomes increasingly important.
Emergence of DECT ULE A recent study from IHS, Connectivity Opportunities in the Smart Home, projects: DECT ULE penetration in standalone gateways to remain fairly low through forecast period (sub-5% of total market) However 40% of integrated smart home gateways* shipped in the forecast period will feature DECT ULE DECT ULE smart home node shipments are projected to grow rapidly through the forecast period, with over 5 million annual shipments in 2017 alone. *Integrated smart home gateways are defined as gateways which include the hardware & software functionality to offer managed smart home services, limited to deployments where home control services are actively offered by the operator.
Conclusion & Critical Success Factors
Conclusion & Critical Success Factors DECT ULE made significant in-roads over past three years. To further gain adoption in rapidly growing smart home market, two critical success factors: 1. Build ecosystem of nodes Broad range of applications is key: energy management, safety & security, comfort, convenience, etc. Gain support from top device OEMs/ODMs: already seen traction from leading safety & security organizations momentum must be continued. Ensure good interoperability across suppliers: user experience needs to be a key consideration as a pre-requisite to widespread deployment. 2. Drive adoption in managed service gateways Managed Services are set to be key segment driving smart home growth. DECT ULE well-positioned to gain traction in this market due to service provided experience of traditional DECT technology.
Any Questions?