But what is a Smart Home?

STRUCTURED WIRING

Today's home wiring includes more than the standard suite of electrical connections. Dedicated wiring for data, telephone, audio, and video are fast becoming standard options. Structured wiring is a generic term used to describe many different types of residential wiring products that distribute a variety of data signals throughout a home. Signal types such as cable television, telephones, and Ethernet computer networks are common examples. A structured wiring package means that multiple data distribution options are readily available in the home. This is where the second cable (RG-6) and data (CAT-5) lines become important. The first cable line carries a signal from a control box to the wall plate—for example, a satellite TV signal. The second cable line can then be used to carry a signal back to the control box. For example, this might be the output from a DVD player. With the appropriate hardware, this DVD signal could then be amplified and sent back over all outgoing cable lines on an unused channel number on every television. The DVD could then be watched on any TV in the house simply by tuning to the previously unused channel. Where this technology really shines is when setting up a home computer network. A single CAT-5 twisted pair line can be used to both send and receive computer data. An advanced control box, commonly known as a router, will be able to decipher the data, and send it to the correct location. Thus, data coming in over a high-speed Internet connection will be sent to the correct computer, allowing for multiple users to share a single Internet connection with no interference. Similarly, data can be sent from one computer and correctly routed by the control box, whether it is an e-mail message to be sent to a friend overseas, a file to be printed on a color printer in the upstairs office, or simply an instant message to your spouse working downstairs.

HOME AUTOMATION

Home automation is likely to be the slowest of the four home owner applications to emerge. The key drivers for this application segment will be ease of use, and the penetration of network enabled devices.

Whilst current home automation starter kits are relatively inexpensive, the complexity of the interface and the sophistication of the programming language is likely to limit this market to the technology enthusiast in the near term.

Furthermore, whilst it is relatively inexpensive to build intelligence into devices at the point of manufacture, retrofitting intelligence is relatively expensive at this point in time. It is forecast that in the medium term, until the aforementioned issues associated with home automation can be overcome that this market will be limited to 15% of home security users. The primary needs for consumers are convenience, saving time and fun.

SECURITY SERVICE

Security services are already a relatively mature market today. However, there are a number of emerging trends in the security industry, which are heralding a change to the current business landscape. There is a shift towards the bundled integrated systems, and new entrants from the telecom and energy industries are entering the market.

Today in the US, there are approximately 15 million homes with monitored residential security systems, and 650,000 new subscribers will be added this year alone. From a consumer perspective, security systems provided through the e-service framework would be a substitute for existing security systems, and provide a more flexible platform, thereby enabling new and more advanced services such as remote monitoring and control of the system. This could be accomplished using a range of access devices, such as a standard Internet browser, or a mobile phone.

ENERGY SERVICES

The market for residential energy services is negligible today, but is likely to grow dramatically over the next few years. The strongest driver for change is deregulation in the energy industry, which is already happening today in the Nordic countries, UK, and California, and will soon happen in the rest of the European Union and USA.

Utilities are looking for new ways to create revenue when prices-and margins-are falling, but are also seeking ways to ensure customer loyalty. At the same time new entrants from highly competitive industries, such as the retail and banking industries, see an opportunity to leverage consumer relations and brand on a huge new market.

HOME CARE

A significant opportunity exists to provide e-services to the home care market. The initial applications in this segment are likely to be to provide "peace of mind" to relatives of elderly and disabled people through security and monitoring services, and to offer communication services such as user friendly home shopping and video telephony. It is important to stress that these services will be an adjunct, rather than a replacement for human interaction and visits. The key drivers of this segment are the aging population in developed countries around the world, and the breakdown of the extended family combined with the increased geographical mobility of the workforce.

In the US today, there are over 27 million elderly citizens living in their own homes. Whilst a number of these elderly receive regular visits, there are significant periods of time when they are unattended. In addition, the U.S. elderly home market is growing rapidly.

Kent Naegele, CGB
Owner of HP Colorado Homes

HP Colorado Homes
P.O. Box 4937
Buena Vista, CO 81211
Phone: (719) 207-2976
E-mail: kent@hpcoloradohomes.com