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Connected Homes and Intelligent Buildings

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CONNECTED HOMES & INTELLIGENT BUILDINGS Below is a high-level itemization of some of the TE Connectivity product families that find common use among all the sub-systems listed above. • Terminal blocks • Rapid termination connectors • Point termination contacts (FASTON, PIDG, etc.) • Small format relays • Power relays • Data I/O connectors • Fine pitch connectors • Passive printed circuit board components • Switches • Spring contacts • Integration/value-add capabilities • High-performance labels • Sensors Custom solutions TE engineers can work with customers to develop a semi- custom or custom design that meets their requirements. The process is initiated by working with one of TE's sales or field application engineers. TE engineers use the latest metal and polymer materials to develop a perfect-fit product for custom applications. Engineers' ability to pull from a wide range of manufacturing technologies such as high-speed progressive stamping, injection molding, a variety of plating technologies, and automated assembly helps ensure long-term production volumes with a design optimized for manufacturing and the end customer's application. Wireless innovations Remote and wireless communication as well as control and monitoring will be an integral part of connected home ecosystems. These connected capabilities drive value by saving time and money for consumers, and will be key to driving demand and mainstream consumer adoption. TE is changing the way appliances are wired to enable a more connected appliance that offers the consumer and OEM many benefits. For example, TE's appliances team developed a product called ADNEXHA that eliminates the complex point-to-point wire harness assembly common in modern appliances. It does so by electronically bussing controls and power to all the devices in an appliance. The result is connectivity that informs. Imagine consumers receiving a text message from their washing machine that the wash cycle is completed, or that the wash detergent they use is just about gone. The ADNEXHA system makes it possible to communicate detailed information about an appliance back to the main appliance controller – if it is connected to a home's WiFi system, it can deliver status messages back to the homeowner's mobile device. The Power of TE TE is uniquely positioned to help customers succeed in the connected home market. From material components such as relays and connectors, to smart components such as sensors and connectivity components such as antennas, TE offers all of the internal elements that make end products smart and connected. Intelligent Buildings: The TE Opportunity The commercial building automation space is different from home automation in many aspects. Its growth is tied heavily to commercial building construction trends, which in this decade have been relatively slow, and tempered by the reduction in the commercial building construction pace in China. The resulting building automation space therefore sees Compound Annual Growth Rates (CAGRs) in some regions in the area of 8.5 percent, and in other regions less than 5 percent with global growth averaging around 5.5 percent 8 . The growth expectations for this particular market are far less than what is projected for home automation. Building automation for commercial buildings started with early pneumatic controls, and has developed into a mature market. Developers of these systems have moved beyond the formerly heavily segregated, separate systems controlling HVAC, security/access, lighting control, building safety, and physical plant control. Today, through integrated system controllers, these separate systems can now talk to one another using a common language made possible by modern serial bus communications such as BACNET and KNX. Standardization drives progress in commercial market Cloud capabilities have brought this market a level of management and control not seen in the past, and have made possible complex heuristics that make the modern building much more intelligent than its predecessors. In today's commercial building systems, many of the bugs and issues now manifesting themselves in home automation have long since been ironed out through the standardization present in BACNET and KNX protocols. The cloud simplifies multi-building management, and serves as a data aggregator for building managers responsible for multiple buildings without the need for a large IT staff to manage a dedicated system.

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