NEWSLETTER
MAY 2017
Opening Session at Z-Wave Summit 2017 - Europe in Copenhagen
A Look at Smart Home Around the Globe
Both the Z-Wave Alliance and myself are based in the U.S. - and it's easy to get caught up in the news, trends and happenings around smart home stateside as there's just so much. New products, startups, developments, and conferences - it seems as though there's not enough time to keep up. But the truth is, there's an incredible amount of activity in the smart home markets outside of the U.S. - so much so that we decided to dedicate an entire newsletter edition to it. 

The Alliance and the Z-Wave brand itself is truly global; our members span almost all continents and are building connected solutions for end users in Japan, Israel, Russia, Norway, Spain, Korea and beyond. As we come back from the first Z-Wave European Summit, held in Copenhagen, I was thrilled to hear from our members overseas and discuss the challenges and opportunities that abound in the global IoT movement. As we look across the spectrum, we've seen clear proof points that the smart home is moving in almost every corner. Let's take a quick look at some stats: 
  • While European smart home adoption hasn't followed the same trajectory as adoption in the U.S., there are reasons to believe it's on the brink of major growth. One clear point was this past February at ISE, the international show for residential and commercial integrators. The show as a whole saw growth in attendance and participation (up 11% from 2016) but there was a clear uptick in support for residential technologies and an increasing awareness and demand for smart home. 
  • Surveys continue to show excitement and interest in smart home across the EU - a survey earlier this year by YouGov in Germany, 85% of respondents ages 18 to 35 said they would consider buying smart devices for the home. 
  • With a growing middle class and a strong interest in the benefits of connected living, countries in Asia are huge opportunity areas. With largetelecommunications providers leading the way with roll-outs, both China and South Korea are in the top five in terms of smart home market size according to Statista
  • The Australian smart home market is a bit behind the adoption curve, though the integrators are making a big push in the do-it-for-me vertical. However, newer surveys indicate that the market is about to take off down under - and consumers are eager for solutions that fit their lifestyles. 

With the increased awareness around artificial intelligence and the value that connectivity is going to bring to our homes, cities, businesses, healthcare and beyond, it's not surprising to see these markets grow around the world. For our part, we're excited to see new Z-Wave devices and solutions being announced every day in almost every corner of the world. Major manufacturers, service providers, telcos, utilities, builders and installers are looking to Z-Wave to help them deliver state-of-the-art, secure and interoperable solutions for their customers. With 70 million devices in existence, we're really only just getting started.


 

To catch a glimpse of the Z-Wave Summit 2017 - Europe, check out our Facebook album. Thanks to all our members (57 companies represented!) who attended and to the Sigma Designs staff based in Copenhagen for helping us enjoy their wonderful city.


 

-Mitch Klein, Executive Director, Z-Wave Alliance

UPCOMING EVENTS
June 1-2, 2017, Berlin
Media Partner

June 13-15, 2017, London
Media Partner

June 26-27, 2017, London
Media Partner, use discount code 4820ZWA250 for £250 off per ticket

July 26-27, 2017, Houston, TX
Media Partner, use discount code HEMS3A for 30% off tickets

September 1-6, 2017
September 7-9, 2017, San Diego, CA
Member Pavilion - Space still available!

Z-Wave Summit 2017 - USA
Save the Date! September 26-28, 2017

October 10-11, 2017, Seattle, WA
Media Partner - Use code ZWAVE to get 25% off tickets
TECH SPOTLIGHT
Simplifying Smart Home Setup: Z-Wave SmartStart
from Sigma Designs
The complexity of smart home installation has been a key sticking point for service providers and a hindrance to smart home adoption overall. For service providers, reducing the time a technician spends in the home is critical to achieving ROI on their smart home initiatives. Enter Z-Wave SmartStart, a new way for service providers to pre-configure devices to the network before they even step foot into an installation. 

In a typical smart home installation, prior to the physical install, a technician may spend a couple hours validating component functionality, integrating components, and configuring scenes, rules, and scripts. Z-Wave SmartStart was designed to greatly simplify that entire process by enabling all those steps to be completed at the service center so that in most cases, an installer only needs to mount the devices, turn on the power and the devices connect to the network. 

Z-Wave SmartStart will enable service providers to barcode / QR code scan the products they have selected for a specific installation. The details of those scanned products will be securely sent to the cloud so when those specific devices are installed and are powered on, the commissioning process will be automatic making the entire installation process faster than ever before. With pre-configuration taken care of at the service center, Z-Wave SmartStart reduces error possibilities during system deployment. 

With Z-Wave SmartStart, the pre-configuration capabilities exist across the breadth of the full Z-Wave ecosystem. This enables different products and solutions from different manufacturer brands to be 'SmartStarted' together and enable instant integration. Z-Wave SmartStart was built on top of the new security framework (S2) which provides the most advanced security for smart home devices and controllers, gateways and hubs and enables service providers to offer the most secure smart home packages on the market today. 
CONSUMER CORNER

New Retail Toolkit Concepts Guide Available to Z-Wave Alliance Members
Starting this month, Z-Wave Alliance members will be able to access the Retail Toolkit Concepts Guide via the Alliance member site, under Marketing Resources.

This comprehensive guide outlines retail tools and concepts that Z-Wave members can use to align their product marketing efforts with the Z-Wave brand and vision. These solutions can help lower the rate of product returns, guide customers through the product selection process and assist with cross-marketing in stores online or in stores. 

On Z-Wave.com we've found that a solutions based approach works best in garnering customer interest in and understanding of smart home products. The guide outlines how you can get started using the same method, and offers suggestions based on product types. An example is the "Smart Home Security" solution that includes smart hubs, lighting, locks, sensors and garage door openers - everything a customer needs to customize their smart home for their particular needs.

The guide also includes signage and display examples that members can use in stores or at tradeshows.

Head over to the Alliance member site and download a guide to get started!
MARKETING MATTERS
Lessons from Z-Wave EU Summit Marketing Sessions
Ashley Daigneault, Caster Communications
I had the privilege of attending the first-ever European member summit, held last week in Copenhagen, the home of Z-Wave R&D. Though I've been working with the Alliance on PR, marketing and social media for over two years now, I haven't had the chance to meet face to face with many of our European-based members. The two days of sessions, networking and meetings were incredibly enlightening and helpful to gain a deeper understanding of the unique challenges and opportunities in the EU smart home space.

Smart home adoption in Europe, though slower than in the U.S., is hard to pin down and generalize. As one keynote presenter demonstrated, when you examine a map of the European region with adoption rates, you see a wide range with different motivations and barriers for each customer base. Several folks expressed the need to have a presence in every major country because the needs and requirements along with culture and language are so vastly different across borders. We notice this from a media market perspective as well - what works for media relations and marketing in one country may not work in another and despite proximity, the attempt to generalize the EU and compare to the U.S. does a disservice to understanding what's happening on the ground.

The discussion around security, Z-Wave's new S2 framework and certification requirements and how consumers will understand these benefits was also interesting. In some ways, the slower adoption across Europe gives manufacturers the ability to look at what's happening in the U.S. in terms of hacking and vulnerabilities being highlighted in the media. With increased adoption and awareness comes more challenges and critics and the smart home in the U.S. has certainly seen its fair share of security breaches and consumer concerns about security. With Z-Wave, members have the chance to build in the S2 framework into their products and boast best-in-class security.
IN THE FIELD
Making the smart home hands on: Fibaro Experience Centers
by FIBARO

As a leading manufacturer of residential IoT solutions including innovative and attractive smart home sensors, controllers and hubs, our products are currently available in 120 countries around the world. In our experience, the best way to showcase both the beauty of home automation and the ability to customize scenes is through a hands-on demo in a life-like environment. In an attempt to do just that, we have recently launched three Fibaro Experience Centers in high-traffic city centers in Chile, Singapore and Mongolia.

The Fibaro Experience Centers are bright, modern and replicate a typical home, featuring a front hallway, kitchen, living room, office and bedroom where smart home products are installed. Each Experience Center provides the opportunity for distributor partners, partnered architects, and home builders to educate and train their dealers and the public on how our devices work with a vast ecosystem of other connected products in real-life applications throughout the home. Each area of the Fibaro Experience Center features a number of interactive Z-Wave smart devices connected to our controllers, allowing visitors to walk up and interact with devices in that space and control them with one of our unique Fibaro controllers or by using the Fibaro app on an iPad.

The mock-front hallway allows us to show off the security features of our system when an intruder is detected and how connected devices can be triggered to create a scene. When unexpected motion is detected by the Motion Sensor, for instance, all the lights in the experience center flicker on and off and the alarm turns on. A notification is also sent to the user's iPad along with a live feed from the connected surveillance camera. As a separate demo showing convenience, The Button one-touch controller is installed close to the front door to show visitors the ease of shutting down the house by activating a "going out" scene. When pushed and held for a few seconds, The Button prompts all connected devices, lights and shades in the Experience Center to turn off/down, the temperature to drop and the alarm to automatically arm. The opposite is also possible when activating a "return" scene.

In the smart kitchen, there are two scenes set up to demonstrate Fibaro's safety chops. In a fire demonstration, Fibaro's Smoke Sensor is activated and causes all shutters in the Experience Center to open and lights to flicker on and off, and a warning notification pops up via the Fibaro app on the connected tablet. A second demo in the kitchen is created using Fibaro's Flood Sensor, which when water is detected, sets off an audible and visual alarm, in addition to a notification that is sent. The flood demo also shows how the Fibaro system can work with other Z-Wave connected devices such as a smart water valve to shut off the water supply and stop further damage from occurring (in the case of a leaking pipe or if a faucet was accidentally left on). In the living room, visitors can activate a "movie" scene, and in the bedroom, there is the option to activate a "good morning" or "good night" scene that raises or lowers the lights and blinds, plus other day or night routine preferences.

The value of hands-on experience with smart home products is not a new concept - Apple has perfected this model at the retail level, letting consumers experience their product lines before making a purchase decision. This is even more necessary when selling smart home products and their benefits. A dealer, partner, architect, or home builder wants to see and understand the value the products can bring to their customers and an Experience Center helps them sell the idea and use case. In the case of consumers, the concept of a smart home is abstract - it's hard to see a product in its packaging and understand the true benefits and value it brings to everyday life.

Experience Centers are helping these audiences around the globe better see the power of our seemingly unassuming devices and the possibilities that exist when using our platform. Our intention is to continue opening Fibaro Experience Centers in major cities throughout the world, including the U.S., to educate dealers, architects, home builders, and end users everywhere about the ease of use and value of integrating Fibaro and other smart home devices in the home. The goal is to demonstrate on a realistic, consumable front how integration can increase safety and allow users to create individualized scenes to suit all lifestyles.
MEMBER SPOTLIGHT
The State of Smart Home in Asia - 2017
Telecom Asia, a media outlet that specializes in the Asian telecom industry, reported last year that Asia's smart home market will grow to $115 billion USD by 2030, accounting for 30% of the global market share, citing a report by global management consulting firm AT Kearney.
 
Japan is leading the smart home market in Asia. From our experience at CEATEC 2016, Japan is already among the top five global markets in terms of smart home penetration, and will see continued growth driven by an aging population. These trends are inspiring households to install health and wellness smart home solutions like remote system access through controllers. 
Similarly, the opportunity in China is growing with a large number of households seeing increased incomes and a strong local manufacturing and technology ecosystem. Shenzhen, China, the Silicon Valley of Hardware, is home to some of China's most successful tech companies, such as smartphone makers Huawei and ZTE and social media group Tencent. Thanks to its history as the cradle of China's manufacturing industry, it is a center for developers of smart consumer products, designed to plug into the Internet of Things.
 
Singapore, South Korea, and Taiwan are also expected to have a high penetration of smart homes due to the large proportion of high-income households and the data connectivity in these countries.
 
"We are looking to Taiwan and Shenzen IoT players to bring their products to Southeast Asia market," TinkBig's founding partner Andrew Tan told DealStreetAsia. "IoT is a very promising area. I believe 2017 will be the year that IoT is going to be one of the hottest topics in the investment scene with functional IoT devices that are going automated and provide convenient to daily lifestyle."
 
Beginning last year, Aeotec has been marching into the Asian market. With a diverse ecosystem of Z-Wave compatible smart home products, Aeotec is committed to contributing to Asia's wave of smart home industry growth.
 
About Aeotec: Founded in 2006 as a smart home R&D firm, Aeon Labs, Aeotec has gone on to develop a full suite of market-ready IoT products. Specializing in the Z-Wave wireless standard, Aeotec offers a range of 40 different products that are used by the IoT industry's leading system makers, with its range of products sold in over 80 countries.
For further information please visit Aeon Labs at http://aeotec.com or contact Aeon Labs via service@aeotec.com.
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