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11

Jul-2019

Build a Smart Home Market but Never Stop Improving

The smart home technology is been centered by the ecosystems appeared to be forming largely in the US, China, and the UK. 

Smart Home Introduction:

A Smart Home is a fully automatic and convenient home, in detail it is the combination of technology and services which upgrades the living standard of individuals by the help of networks and also it is the biggest boon for the disabled individuals. The entire electronic devices act “smart” with the help of this technology. Therefore, Smart Home is the combination of “reduction in workload and smart technology and much more. This technology is mostly used in the kitchen and living area. New devices are developing every day. Hence, the companies are not only doing development for the creation of new devices but to show the interconnection of their devices and the other brand devices.

Market Size and Growth:

The growth is been predicted to be 21 billion US dollars in 2020. Therefore, 4.4 billion US dollars was the value market of the Smart Home Automation Market in 2013. In 2014 the revenue of the Smart Homes market was 20.38 billion US dollars worldwide. Further, revenue is forecasted to be 58.58 billion US dollars in 2020. The major proportion is been covered by North America that is 13.07 million in 2015, to 20.26 million in 2016, and 31.4 million in 2017.

Industry Drivers:

Worldwide, Energy management is a significant source of revenue which is the major factor for the penetration of Smart Home households. Therefore, nearly $600 million was the revenue of the United States in 2015. Security devices are driving the growth of the Smart Home market. It is expected that in 2019, 709 million IoT security devices will be shipping.

Smart Home Benefits:

Energy efficiency:

Adjustment of room temperature, while sitting in any part of the world would be a blessing, as it will help to control the room temperature smartly and according to our needs. Also, it helps to control the waste usage of energy.

Saving money:

Companies are becoming more eco-friendly as well as their products. As compared to the old technologies, the new technologies are using less energy. Which helps consumers to save energy as well as their costs and bills.

More security:

In this era, Security has been one of the most important parts of our lives. So, by keeping in mind, the security of once, smart technologies have developed various app that can open in the phone and can remotely lock the doors of the house. Which allows us to leave the house with any worry?

HOW SMART HOMES WORK:

When we are in hurry and go out for work without rechecking the doors and other electronic devices which we use in our day to day life, then after moving there is still little nagging going on our head. Did I turn off the Geyser? Did I lock the door and set the alarm?

All these worries can be quiet easily with a glance at our smartphone or tablet with the help of a smart home. Connecting the devices and appliances in the house that uses electricity and can work on your command (like remote control, voice command or smartphone, etc. the home reacts).

Two Protocols used for the home automation communication are Zigbee and Z-Wave, although Zigbee is more complex as compared to other due to which Zigbee can be found in various companies but, Z-Wave is found in Sigma Designs only. Short-range, Low-power radio signals, both mesh networks are used to connect the smart home system. The range of Zigbee is 10 meters, and Z-Wave is 30 meters. A Master Home Automation control is the hardware device that communicates, sense, process data and can controls all the devices wirelessly and acts like a central point, often known as “Smart Home Hub”.

Some of the applications which are getting popular day by day in Smart Home System are:

1) Machine Learning

2) Artificial intelligence (AI)

For example Amazon Echo, Wink Hub, etc.

Structure and Elements:

Sensors:

It is used for the continuous checking of the environment and to convey the message if there is any kind of changes in the environment. For example Heat sensor, humidity sensor and more.

Actuators:

Physical Actions are performed by the Actuators. For example Door, window and many more actions related to the environment are performed by Actuators.

Central Unit:

All the units have their own microcontroller. It is used in the system for the rendering possible programming of units, apart from it does not have much use.

DEMAND FOR SMART HOME PRODUCT:

Smart Home products demand is still limited, only 30% of the households are intending to buy it. As you can see from the graph itself:

  • Thermostats: The demand for Thermostat in 12 months is 6%.
  • Security devices: The demand for Security devices in 12 months is 5%.
  • Smart lighting: The demand for Smart lighting in 12 months is 4%. And so on.
  1. Growth is expected to be over three-fold between 2016 and 2021 in the U.S., exceeding 32 billion USD.
  2. The revenue of China in 2016 was 1.2 billion, now expected to grow 13 billion USD in 2021.
  3. Asia-Pacific is the leading zone, and Europe is lagging, which is giving great benefit to the United Kingdom and Germany markets.

PRECAUTION FROM GETTING YOUR SMART HOME HUB HACKED:

Attention!!! Who is listening?:

There is an In-built microphone in smart hubs, which are always listening- like Amazon Echo or Google Home which gives a response to the voice commands. This device is a double-edged feature, which will open you up to surveillance if the device is not secure. One should know how to disable their microphone devices when needed more privacy. Your entire smart home network can be vulnerable, as a smart hub controls many devices.

For Example, Amazon Company has mentioned that “Alexa” cannot record the conversation until and unless it is asked to do so by saying the “WAKE” word to Alexa. But, one of the “Alexa” users from Poland name Spiel Danielle claims that they haven’t asked “Alexa” to record the conversation still, “Alexa” has recorded the conversation between her husband and her, and have sent that conversation to the random person from her address book.

Danielle got to know that her “Alexa” was recording the conversation when she got the alarming call from one of her husband’s colleagues saying- “Unplug your “Alexa” device now as it is been hacked.

Smart Firewall:

It is important for the smart home to get firewall protection, malware protection or a smart firewall specially designed to protect IoT devices from the internet-connected to their home.

Firewalls allow the entrance of, only the identified IP address, which is close off to the hacking network and discourages the hacking attempts. The expert advised for the firewalls because many electronic product manufacturing companies are not consistent about the security issue. As there will be an increase in the number of the smart home there will be a complex situation related to the security devices.

For example, Security Expert “Lesley Carhart” wrote in January about the incident related to her Landlord’s decision to install smart locks.

According to the Dardaman and Wheeler research, they have found that anyone who is having the private key can access a device without needing any password, as they have found the SSH key which is hardcoded in every private hub “root”, sold to the customer- by installing the same hub in every home. By using that private key, the researcher can download the file and password and can use it to access the hub.

Time to Change Your Usernames and Passwords:

Alert!! Everyone should change the password periodically, as many people do not change their default password or for a long time. For an additional security purpose, you can set for the two-step authentication process on some devices and accounts. This step is important for things like smart home hubs etc., and never forget to change the password if control by the mobile phone.

GEOGRAPHY PRESENCE:

In startups, the Local environment is been count by experienced employees, suppliers, and investors. The smart home technology is been centered by the ecosystems appeared to be forming largely in the US, China, and the UK. In the past 10 years, home business is also found in Silicon Valley, London, and New York.

GEOGRAPHY PRESENCE:

In startups, the Local environment is been count by experienced employees, suppliers, and investors. The smart home technology is been centered by the ecosystems appeared to be forming largely in the US, China, and the UK. In the past 10 years, home business is also found in Silicon Valley, London, and New York.

 

 

 

 

 

 

 

 

 

 

TOP MANUFACTURERS MENTIONED IN THIS INDUSTRY ARE:

Johnson Controls International (Ireland), United Technologies Corporation (US), Schneider Electric (France), Honeywell International, Inc. (US), and Siemens AG (Germany) are currently dominating the smart home market. Other key players operating in the smart home space are Amazon, Inc. (US), Apple Inc. (US), Google (US), ADT (US), Robert Bosch Gmbh (Germany), ASSA ABLOY (Sweden), ABB Ltd. (Switzerland), Ingersoll-Rand PLC (Ireland), ABB (Switzerland).

CONCLUSION:

Currently, Smart home technologies are affordable by higher class people but soon, we will be having it in every house. Right now it is dependent upon the vendor but in near future, it will be, a standard feature with can be easily designed by the designers and manufacturers which will be cost-effective and reliable and flexible, because recently all the equipment’s are not available with the manufacturing industries which is increasing the cost.

Also shortly there will be zero maintenance expenditure. Therefore, the smart home is increasing the living standard of individuals.

 

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WRITTEN BY: Himani Kathal

Himani Kathal is a management student at RIIM Pune. She worked as a Research Associate (intern) in Market Data Forecast, one of the world’s leading research and consulting for various business domains, individuals and corporate clients