Download - How Consumers are driving the Smart Home
How Consumers are driving the Smart Home
Pilgrim BeartFounder, AlertMe
Smart Grids & Cleanpower 201123-24 June Cambridge UKwww.cir-strategy.com/events/cleanpower
Today
• State of the Market• What do we know?• The big picture• Latest market research results
• State of the Art• The Smart Home
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State of the Market
State of the Market
• Climate change and energy security raise significant challenges for everyone:• Government• Energy utilities & Networks• Consumers
• Challenges include:• UK committed to 50% CO2 savings by 2025
• DECC estimates that Smart Meters will drive only 2% savings in the home
• Utilities caught in pinch of maintaining profits while selling less energy
• Network operators facing increasing variability of supply• Consumers seeing more pain as energy prices rise, particularly in
these tough economic times
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Consumer can be a big part of the solution
• 30% of all consumption happens in the home• Cost increasingly MOTIVATES consumers to save
energy• Now if we can just EMPOWER them, they can be a
big part of the solution.
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Motivation + Empowerment = Action!
Motivation – Empowerment = Frustration
3 Steps to Empowering the consumer
Inform
•Show where the energy is going
•Towards itemised energy bills
Control
•Turn off consumption when house is empty
•Easy-to-use controls (e.g. online)
Automate
•Reduce management burden
•It just works: saves money, increases comfort
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Evidence from market
• Specific interventions studied by academia & commerce• In-home displays, intelligent heating controls, bill messaging etc.• But mainly only at small scale (qualitative)
• If testing 15% saving in home energy…• then studying e.g. 30 homes gives error bars larger than the effect• (even though the effect is ~£4.6bn/year nationally!)
• So need more studies at the scale of 1000+ homes• With control homes alongside
• DECC, LCN fund etc. now planning scale trials• Biggest-scale so far is CERT funding for in-home
displays• Has so far pushed ~1.5m real-time displays into homes• 6% of households• Evidence that they do drive some behaviour change• But how many are still in use?
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Consumer market generally
• What do consumers want?• Online is huge enabler• Be where consumers already are (e.g. social)• Appearance of Smart devices in the home• Back to simplicity
… so the Consumer is going in a particular direction: go with it
• Analogy:• We used to sit back and passively consume whatever was
broadcast for our delectation.• Now we:
• Actively participate in choosing what to watch• Can do so wherever we want• Even generate content ourselves, e.g. YouTube, Facebook etc.
• Likewise Energy and the Smart Home
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Evidence from market
• Evidence from AlertMe B2C customers• Every AlertMe customer is online• Rich, engaging dialogue with them:
• Analysing how they use the service• Day-to-day customer service• Engaging in surveys and focus groups for deeper
understanding
• To achieve quantitative rigour, we commissioned a large piece of market research by Critical Research.
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Market Research
Latest results
Consumer Market Research - May 2011
• Sample size: 1224 UK Homeowners• Sampling errors on a single sample
• For 95% Confidence Intervals:
10% / 90% +/- 1.5 percentage points
25% / 75% +/- 2.2 percentage points
50% / 50% +/- 2.5 percentage points
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Awareness of Terminology
“Do you know what is meant by the phrases‘Home Energy Management’ & ‘Home Monitoring’?”
Not sure
No
Yes
27
22
51
(%)
Base: 1,224 panel members
Awareness of Terminology
Definition: • Home Energy Management provides visibility, control,
and automation of home energy (electricity, gas, and heating) online anytime, anywhere. It uses real time two-way communication allowing consumers to manage and control a wide range of activities in the home over the internet and via their Smartphone. Users would save up to 20% on their energy bills, reduce their carbon footprint, and provide greater efficiency and convenience.
• Home Monitoring provides security tools such as cameras, motion sensors, door sensors, and window sensors with automation and ‘presence’ for immediate notification by text message of activity in your home to give you peace of mind.
• The two products together form the Connected Home.
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Awareness of Terminology
“Do you now understand what is meant by the phrases ‘Home Energy Management’ & and ‘Home Monitoring’ and ‘The Connected Home? “
Not sure
No
Yes
4
2
94
(%)
Base: 1,224 panel members
Rank Order of the Key Attributes
“Please rank the following attributes of the ‘Connected Home’ system in terms of appeal”
%’age giving Top Three Ranking
13
25
32
34
46
59
75
0 20 40 60 80 100
Latest technological innovation
Reduce carbon footprint
See and understand
Convenience & simplicity
Peace of mind
In control of your home
Helping save money
% Ranking
First
% Ranking
Last
42
15
17
6
6
5
3
1
3
7
8
11
29
36
Base: 1,224 panel members
Which Connected Home benefits do consumers value?
Save Money
Control Anywhere
MoreControlAccurate &Live
Info
Peace ofmind
Save energy
Security notification
Easier to use
Heating
Safety/Fire Notifica-tion
Other Convenience
Base: 1,224 panel members
Home Energy Management
• See a live view of your home electricity and gas consumption
• See it on an in-home display, on the web, your PC, or on your Smartphone or tablet
• See how much your electricity and gas is costing you, and predict your bill• By identifying where appliances waste money, this could save you £120 per year on your
utility bill
Home Energy Management - initial interest
“Having read / looked at the information,how interested are you in the idea of Home Energy Management?”
DK / No opinion
Not at all interested
Not that interested
Fairly interested
Very interested
Extremely Interested
3
7
12
36
27
16
(%)
Base: 1,224 panel members
Energy Monitoring – Offline or Online?
OPTION 1: A Free Energy Display. Your energy supplier gives you a colour display which you can put somewhere convenient in your home, such as on your kitchen worktop. It shows at a glance how much electricity you’re consuming right now, and gives you a running total of spend so far this week or month.
OPTION 2: Free Online Energy access. Your electricity supplier gives you a service which lets you check your household energy use any time you want on the internet, using your own computer, or your computer at work, or your mobile phone or tablet – all for free. It helps you budget by predicting your bill, and gives you specific advice on how you can save energy, for example by showing you which appliances are using the most energy, and how to use them more efficiently. You get more detailed information than Option 1, but you do need to log on to your computer or use an application on your Smartphone to access the information.
Energy Monitoring – Offline or Online?
Given the choice, which one would you choose?
Neither
Depends
Option 2 - Online
Option 1 - Display
8
12
40
40
(%)
Base: 1,224 panel members
Web or SmartPhone?“Given the choice, would you prefer online access to your ‘Connected
Home’system via a Smartphone or through the Web?”
Don't know
Both of these
Web
Smartphone
0 10 20 30 40 50 60
12
38
33
16
(%)
Base: 1,224 panel members
State of the Art
The Smart Home today
Home Energy Audit
Hub Gateway
Wireless OSGi HAN *Heating
Control
Appliance Control
Smart MeterData
EV Charging & Management
Broadband
AlertMe is a single HAN solution for the SmartHome, providing an affordable, expandable and open platform that gives consumers:
• Visibility and personalised information
• Remote control anytime, anywhere
• Intelligent automation to suit their lifestyle
MicrogenerationManagement
Safety & Security Applications
Real-time data
capture
Data processing
Control messaging
Open API
Partners
* OSGi Gateway enabling multiple Home Area Network (HAN) wireless protocols
What is AlertMe?
How it works
• AlertMe provides an OSGi gateway using multiple communications protocols to connect and control a broad range of devices in the home, both from AlertMe and 3rd parties. Using broadband connectivity via the AlertMe platform, users can access a wide range of cloud based services
• The platform also allows further device and service innovation such as Telecare and Smart Metering
• Multiple device drivers from the ‘Device Store’ and services through the ‘Applications Store’
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Intelligence / awareness through Device
Abstraction
Application download
Driverdownload
Device Management
AlertMe OSGi Gateway
‘DEVICE STORE’Driver Repository
Personalisation& Rules Setting
‘APP STORE’AlertMe and Partner apps
Device Customisation
OS
Gi S
DK
to p
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SensorsCamerasDetectors
ThermostatsAppliances Smart Plugs
Smart MetersSmart Grid
E – HealthDevices
Other 3rd
Party Devices
Services: SmartEnergy
Easy to use applications that enable consumers to take control of their home
• Tracks home energy use in real time
• Bill prediction and budgeting
• Home internal & external temperature
• Analytics for personal advice to reduce bills
• Appliance level tracking
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Dog heater
WashingMachine
Services: SmartHeating & SmartControl
• SmartHeating - Easy remote control of home heating
• Simple understandable control of home heating system
• Control from anywhere – mobile, online, in the home
• Save energy – only have the heating on when you need it
• SmartAppliances - Remote control of home appliances
• Schedule switch on/off times for appliances
• Presence-detecting key fobs control appliances automatically
• Monitor energy cost & consumption of major home appliances
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Home Energy services & potential consumer Savings
Awareness (near real-time use & cost) between 5-10% saving
Automation (climate control, lighting etc.) up to 40% saving
OnWorld Smart Energy Homes Q4 2010
Services: SmartMonitoring
• Self–install home monitoring system for peace of mind• Simple to install and use
• Secure: battery & GPRS backup
• Motion & contact sensors
• Video monitoring: fixed, pan & tilt, outdoor
• Safety applications: Smoke, Gas, CO, flood detectors
• SMS, call & email alerts
• Option to link with professional monitoring centre
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UTILITY CHANNEL TELCO CHANNEL RETAILERS DIRECT
External pressure to meet challenging targets
From a necessity into an opportunity for customer
loyalty
Looking to next value added services for ARPU
growth
An explosion of data opens e-commerce
opportunities
Big box and home improvement stores moving into energy
saving and Smart Home technology
Early adopters - consumers who
want to take independent
control of their energy use
Routes to Mass Market
In addition to selling direct to consumers, AlertMe partners with companies with large customer bases to deliver maximum awareness and engagement. Telecommunications companies, utilities, OEMs and retailers all have motivations for competing in the smart home arena.
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Smart Home evolution in 2011 & 2012
• Openness = Standards• Bringing it all together• Giving consumers choice• Allowing innovation• Ecosystem emerging• IP, OSGi, ZigBee, …
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The Smart Home: Sandpit for the Internet of Things?
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From a standalone proof of concept … to standards-based open platforms• Many ‘smart’ devices in the home
• Becoming internet-enabled, but 1:1 & M2H
Things in homeOpen
Gateway
Open HAN
Open CloudServices
Open WAN
UserExperience
Open Platform
IoT
• Platform-based
• Open standards, 1:many and M2M
How Consumers are driving the Smart Home
Pilgrim BeartFounder, AlertMe
Smart Grids & Cleanpower 201123-24 June Cambridge UKwww.cir-strategy.com/events/cleanpower