Graph showing reasons broadband providers are getting into home automation.
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The top two reasons broadband providers are deploying home automation services are to increase average revenue per user (ARPU) and reduce subscriber churn (Graphic: Infonetics Research)

Homebuilders may be getting new, low cost options for including home automation features as broadband providers begin rolling out their own versions of these popular add-ons. If home automation and security can come through standard broadband connections then additional wiring and equipment becomes unnecessary.

According to a press release from technology market research firm Infonetics Research,  recently surveyed broadband operators are deploying home automation, or home control services. The survey also looked into the types of services they plan to offer now and in the future, delivery methods, technologies and protocols, home monitoring equipment suppliers they buy from now and are evaluating for future purchases, and who they perceive of as the top suppliers in the field.  Jeff Heynen, directing analyst for broadband access and video at Infonetics explained the attraction of this market to broadband suppliers, saying:

While the home automation market is still young, major operators, including Verizon, AT&T, Comcast, Time Warner Cable, and China Telecom, have already made public announcements regarding home automation services and some have begun initial rollouts, and many more will jump into the game this year. The potential customer loyalty and incremental revenue attached to home automation services, particularly home security and home energy management, are too enticing for any operator to pass up. Many broadband operators are starting out small, offering remote control of lighting, doors, thermostats, audio, video, and security systems. The goal will then be to layer on additional revenue-generating services, such as a full-fledged home security system.

HOME AUTOMATION SURVEY HIGHLIGHTS

  • The top two reasons broadband providers are deploying home automation services are to increase average revenue per user (ARPU) and reduce subscriber churn.
  • Home security service is the most popular home control service offered currently and will remain a top home automation service.
  • Monitoring of appliances and monitoring of whole home energy usage will see the biggest growth among home automation services between now and 2013.
  • While the bulk of Infonetics’ survey respondents are fixed-line operators and service providers, there is strong evidence to suggest that mobile operators are also looking to muscle in on the home automation opportunity.
  • WiFi is the most popular wireless technology used by operators to deliver home automation services, but Zigbee and Z-Wave are growing fastest, seen by many as better options because they are low-power, mesh networking technologies.
    • Zigbee chips are being installed in most smart energy meters in North America and most companies developing smart home adapters are using it
  • Control4 and Honeywell are viewed by respondent operators as the top home automation equipment and software suppliers.

The results are published in Infonetics’ Home Automation Service Strategies: Global Service Provider Survey, an in-depth look into the latest trends in home automation (services offered via a broadband or mobile connection to the home).

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