Issue link: https://te.mouser.com/i/1394684
CONNECTED HOMES & INTELLIGENT BUILDINGS The global home automation market now encompasses all controllable elements in the modern home. Connected lighting, appliances, entertainment, and access devices are all commercially available for professional and DIY installation. Driven by safety and security concerns, energy savings potential, and convenience, the main home automation elements of lighting, safety, security, entertainment, HVAC, and energy management are now controllable using existing technologies. This convergence of market drivers and technologies has resulted in significant market growth potential, with overall market values estimated at $3.6 billion in 2012, and growing to $16.4 billion by 2019. This growth is being led by North America, with a total market share of 40.7 percent of global home automation installations 1 . Safety and security Established security companies such as ADT 2 are leveraging the connected home trend as the foundation for expanded home automation offerings through SHaaS (Smart Home as a Service). In addition, broadband providers such as AT&T and Comcast, and energy companies such as British Gas, have also created new revenue streams through SHaaS 3 . Broadband, cable, and energy operators are uniquely positioned to succeed in this market, as they have millions of customers who rely on their services for energy management and data access. Since these service providers seldom design their own components, a wide range of commercially available, interoperable, and easily deployed hardware – such as relays, switches, connectors, sensors, passives – is necessary and critical for growth of the SHaaS market. Drivers of the Connected Home Market Connected consumers The connected consumer is a major driver for the connected home industry. Seventy-eight percent of U.S. consumers own mobile devices, and they realize the value of controlling home functions – such as heating and cooling systems – from anywhere they happen to be. Being able to adjust a home's temperature from the office or check whether a door is locked is a capability not possible even 10 years ago. The inherent GPS tracking capabilities in mobile devices create new application options through geo-tracking, such as the ability to unlock a door and turn on the lights as a homeowner enters his or her driveway. Other capabilities are enabled by interfaces to personal wearables, such as fitness and health monitoring devices 4 that can signal a home automation system to dim lights when it senses the user is asleep, or open blinds when the user is waking. These health-monitoring options are also creating new market spaces, such as age-in-place applications that enable real-time monitoring of the elderly and the devices in their homes – a better alternative to moving them to more costly assisted living facilities 5 . The growth of such markets and the development applications will require the hardware necessary for connectivity. Wireless and radio protocols Another technology driver of the connected home market is the coalescence of wireless and radio protocols. The smorgasbord of open and closed protocols and communication standards is typical in a nascent industry. ZigBee, ZWave, KNX, Thread/6LowPAN, Bluetooth LE, and Wi-Fi all are in play in this market, with some manufacturers staking their claims on one protocol, as others hedge their bets and implement two or more in their products. Each protocol has its strengths, and although they are all different, their combined penetration in the market space is valuable since each illustrates what is possible within a home automation implementation. However, it is likely that only one or two protocols will prevail. Fortunately, the hardware required for connectivity is the same regardless of what communication chip or protocol is implemented. TE'S Role in the Connected Home Marketplace TE has strong relationships with the major home automation device OEMs in the connected and home and building markets, including the top 10 home automation suppliers as reported by BCC Research. Connectivity is critical to the efficient manufacturing, assembly, and installation of these devices and TE's products are designed into OEM products that are driving home automation innovation. TE's additional focus on second- tier OEMs and third-tier startups through direct sales relationships and through its distribution partners positions