Issue link: https://read.dmtmag.com/i/37034
2 SECURITY STATS www.securitysystemsnews.com AUGUST 2011 SECURITY STATS and home security technologies and how these two markets are increasingly intersecting with the advent of home monitoring and managed home automation services. The report finds that global annual home automation shipment revenue will grow from $4.5b in 2010 to $11.8b in 2016. Home automation on the rise A By Daniel Gelinas RECENT STUDY from ABI research analyzes the mar- ket for home automation brisk pace. “The revenue growth trend Sam Lucero What will drive that growth, and what factors may stand in the way as security integrators attempt to branch into home automation? According to ABI practice director, M2M Connectivity, Sam Lucero, the current confluence of increasingly less expensive, interoperable technology and more evolved, technologically savvy end users is furthering adoption at a looks different from the sys- tem shipment volume growth trend because of the differ- ence in ASPs (average selling price) between a luxury home automation sys- tem—typically very high-end, custom designed and installed— and the ASP of the newer, more mainstream systems coming out today,” Lucero said. “Up to now the market has really been defined by a very bifurcated characteristic of having on the one hand these luxury ‘MTV-Cribs’-type-systems … On the other end, we had very simple do-it-yourself Radio Shack-type-stuff that would con- trol a few lights in the home.” Lucero said that improvements in standards-based wireless com- munications technologies like Zigbee and Z-Wave and Home- Plug (which uses proprietary technology that supports net- working over existing home elec- trical wiring) are bringing costs down and will drive adoption. “What’s been missing is the main- stream middle market. Over the last few years the inflexion point we’ve seen is being reflected in M&A activ- ity and on the entrance on the part of service providers, including secu- rity alarm service providers,” Lucero said. “It allows for ecosystems to develop around a central control- ler. You have third parties that will develop specific point systems that tie in—lighting control or smart thermostats, or media control.” Lack of end user awareness and lack of perceived need are stum- bling blocks integrators need to combat in order to realize reve- nue from the growth of the home automation and control market, according to Lucero. Lucero said integrators needed to talk with home automation vendors and get educated in order to overcome stumbling blocks. “They all have developer pro- grams and dealer programs,” Luce- ro said. “They can provide a lot of education in terms of how to deploy and configure systems. CEDIA is a good resource, as well.” SSN Global annual home automation shipment revenue SECURITY SYSTEMS NEWS