Top 5 Verticals for Smart Home Technology in 2020 and Beyond
By: Mitchell Klein, Executive Director, Z-Wave Alliance
2020 marks a fresh decade full of promise for smart home -- in the past 10 years alone, the industry has been intently focused on cultivating widespread consumer awareness and interest in the smart home. With both generated revenue and adoption on the rise, opportunities for smart home device and solution manufacturers will be abundant over the next several years. In fact, according to Statista, smart home revenue is expected to show an annual growth rate (CAGR 2020 - 2024) of 14.3% resulting in a market volume within the US of $47,119 million by 2024. With that growth in mind, let’s look at some of the verticals posed to hold the greatest opportunities for the smart home industry and our members in 2020 and beyond.
Security – When it comes down to reasons why consumers are adopting smart home solutions, safety and security remain at the top of list. However, despite the recent explosion of DIY security systems, Parks Associates reports that only 28% of broadband homes currently have a security system installed which leaves a huge portion of the market open to providers who can supply additional security solutions to those currently going unprotected.
Energy and Resource Management – Just as leaders in sectors across agriculture, travel, hospitality and more are working to reduce their carbon footprint or become carbon neutral in 2020 and beyond, that trend is having a trickle-down effect for building operators and homeowners alike. A study from Research and Markets predicts the global building energy management systems industry is expected to reach $9.32 billion by 2023 which shows more companies are investing in energy and resource management solutions to reach both operational and financial goals. Smart lighting and systems that control heating or cooling of larger corporate spaces can have a huge impact saving an organization money on energy costs and those same benefits can be realized by individuals at home, on a smaller scale.
Smart Appliances – Within the smart home market, smart appliances in the kitchen and beyond are growing in value as OEMs are beginning to leverage network connectivity to provide users with a wide range of intelligent functionality spanning monitoring, remote control and maintenance, to drive increased purchasing interest and product satisfaction. And as more of these appliances come online, there is a need to monitor for situations such as water leaks, which smart dishwashers, washing machines, refrigerators, and freezers are still at risk for, which opens up the opportunities for additional smart connectivity in the home. An excellent proof point highlighting the anticipated growth and opportunities associated with smart appliances gaining momentum is leading appliance brand GE recently joining the Z-Wave Alliance.
Design Friendly Devices – Within the past decade, smart home product innovation and design has come a long way. As we’ve championed for solutions that mean end users never have to come home to a cold or dark house, we’ve also seen a surge of smart devices that are as beautifully designed as they are functional. As smart home adoption begins to transition from early adopter to mainstream, consumers are looking for solutions that perform as they should and also allow them to express their personal style or home aesthetic. They want technology that doesn’t necessarily look like technology and that can easily blend into the background of their home. Smart lighting and control over those functions through touch or wall panels is a perfect example of an aspect of smart home that designers and homeowners alike are looking for moving into the new decade.
MDU / Hospitality – Smart apartments and connected hotel rooms are essentially just miniature implementations of smart home technology; the consumer experience might be very similar in an apartment or hotel room that comes with connected devices. With that comes big benefits for management - keyless entry systems can grant access to their apartment for service calls, maintenance, and cleaning. In a hotel, management may provide guests with access to offices, conference rooms, or secure facilities without the need for a tangible key, or on energy costs by allowing them to easily access lighting and comfort in rooms. Management also saves money and resources by not having to be present to let someone into a building. Multi-dwelling units represent a burgeoning opportunity as you’ll learn more about in a case study from one of our members further down in this newsletter.
Aging in place represents a particularly important smart home use-case primed for growth over the coming years, and is unique in the case that it encompasses aspects of all five of the aforementioned verticals. As the population ages, there are more technology savvy children and caretakers of aging parents than ever before. Their familiarity with technology-based solutions capable of providing access for caregivers, easy control of the temperature, alerts and warnings from appliances, and of course safety and security, coupled with the fact that nearly 90% of seniors in both the US and UK have identified that living in their own home for as long as possible is “highly important” translates into vast opportunities for the smart home market.
2020 has already been momentous for the Z-Wave Alliance and the Z-Wave community. Our opportunities for growth are by no means limited to the five sectors indicated above as we look forward to how the new decade will elevate smart home to the next level, and what our role will be in its growth.
Member Case Study: Flex Automation Participates in Construction Tribute to an American Legend
In late 2018, Brazilian developer, Porte Construtora, brought on Z-Wave Alliance member, Flex Automation to add smart automation to a new apartment building: Helen Altos do Tatuapé. In the proposal to honor great personalities recognized worldwide, Porte chose the late and legendary American author and activist, Helen Keller to symbolize this building launch.
After introducing Porte to Z-Wave technology 12 years ago, Flex became the sole automation provider for all of their construction projects going forward. Since then, they’ve deployed dozens of automated luxury residential and commercial projects for Porte.
Porte knew that in order to fill the 374.13 square meter deluxe units of the Helen building with tenants, they needed to install amenities that would attract a very exclusive and high-end market. Unfortunately, at that time Brazil had just endured the worst economic crisis their real estate/construction market had ever seen, so every penny counted in making the project feasible.
Besides the typical facilities and services, such as indoor and outdoor pools, playroom, playground, fitness center and sports court, bar space, gastronomic space, and more, Helen Altos do Tatuapé is fully automated with over 2,250 Z-Wave devices comprising lighting, climate, access control, shades, entertainment, etc. For security purposes, there is a Flex Automation pin keypad, chosen over the competition due to cost convenience, on each door to control the door strikes and doorbell.
“Porte had already been delivering high-end, fully automated apartments when we approached them for business back in 2008 but they were using exclusively wired solutions which required heavy and expensive infrastructure in every unit,” said Jean Pascal Nathan De Simone, director of Flex Automation. “At that time their cost per apartment was totaling $30,000 U.S. dollars plus another $2,000 of wiring, cabling, paneling, etc. We were able to introduce them to a whole new concept, based entirely on Z-Wave, which lowered their total cost by fifty percent and their infrastructure cost by ninety percent.”
Z-Wave devices from Flex Automation included in the Helen project include:
FXA3000D 6 pin pad: main and service door
FXA0600 6 dimmers 4 scenes: Living + Dinning + HT
FXA0400 4 dimmers 4 scenes: Balcony+ Barbecue
FXA5029 2 dimmers+2 ONOFFs+1 scene: Master Suite
FXR5013 3xONOFF relay switch: 2nd Suite
FX-D211 micro module dimmer: 3rd and 4th suites , Atrium
FX-R211 micro module relay: hallway, laundry
FX-C212 micromodule combo relay: all WCs, laundry and kitchen
FCH Flex Cloud Hub: Z-Wave Gateway
FXV Flex VRF Aircon Interface: 10 zones
Learn more about Helen Altos do Tatuapé at https://porte.com.br/empreendimento/helen.
Do you have a case study or project you’d like to see featured in our next newsletter, or on our social media pages? Email us at firstname.lastname@example.org!
Z-Wave Fall Summit is Now Part of Works With Smart Home Conference!
We are excited to announce that the popular Z-Wave Fall Summit is now part of the Works With 2020 smart home conference presented by Silicon Labs, September 9-11, 2020 at the JW Marriott, Austin, TX!
Works With includes everything you know and love from the Z-Wave Fall Summit amplified!
Expand your smart home expertise with:
- Keynotes from Amazon, Google and more
- Hands-on developer training and access to new platforms
- Technical presentations and demos for key smart home applications
- Robust business development opportunities
- Networking with enablement partners that can help you develop more and get to market faster
- Interactive sessions on wireless technologies, including: Bluetooth, OpenThread, Proprietary, Wi-Fi, Zigbee and Z-Wave
Learn how to simplify smart home product development, accelerate time to market and rapidly expand your customer base.
Z-Wave Alliance members receive special pricing:
$249 early-bird before 3/30/20
Use code WWZW when registering
To learn more about Works With, review sponsorship/exhibit opportunities and to register, visit: silabs.com/workswith.
|Z-WAVE PAVILION EVENTS
September 9-11, 2020, Austin, Texas, USA
For more information and to register CLICK HERE
Z-Wave Alliance Members receive special pricing using code: WWZW
September 10-12, 2020, Denver, Colorado, USA
Member Pavilion Space is available here.
Light + Building
Rescheduled for September 27-October 2, 2020
Member Pavilion Space is available here.
MEDIA PARTNER EVENTS
Insurance AI and Innovative Tech USA 2020
May 12-13, 2020, Chicago, Illinois, USA
Receive VIP upgrade on registration with discount code: 5106ZWAVE
IoT Innovation North America
May 13-14, 2020, Chicago, Illinois, USA
Receive special savings on registration with discount code: ZWAVE