The Interconnected Home

Graeme PhilipsonConnection Research

23 August 2011

Not another cutawayhome slide!

What is theInterconnected Home?

Five Different Views of the Interconnected Home

The Telco View

Everything is a device servicedby a broadband connection

The Consumer Electronics View

Everything is a device that feeds content into a home entertainment system

Internet Content

Internet Content

The PC View

Everything is a peripheral connectedto a Local Area Network

The Cabling View

Everything is a device connectedto a structured cabling system

The Residential Energy View

Everything is an appliancethat consumes energy

Which View is Right?

All of them …

… and none of them

Only One View Matters

The Customer View

Everything should just work together!

The Interconnected Home

• The “views” are merging– All are digital– All use similar technologies …… but have different sales channels

• Consumers don’t make the distinction• Energy costs are rising – quickly• The relative importance of the key

drivers is changing

The DriversView DriverTelco ConnectivityConsumer Electronics EntertainmentPC InformationCabling ConvenienceEnergy Cost Savings

Rising costs and new technologiesmean that energy issues will be

increasingly important

Metrics

Money

Regulation

Altruism

Physical Control

Residential Energy Framework

Measure Monitor Manage Mitigate

Comms, Information,

Entertainment

The Living Environment

UtilitiesThe Built Environment

Remote Monitoring

Energy Management

Security and Access Control

Physical Device Control

Orientation & Design

Outdoor (Shading etc.)

Building Materials

Insulation

Gas

Telco & Internet

Electricity

Water & Sewerage

Refrigeration & Cooking

Washing, Bathing,

Swimming

HVAC & Hot Water

Lighting

PCs & Games

The Home – Mobile

Interface

Telephone

TV & AV

The Interconnected Home2011 Research Program

• Part of Connection Research’s Intelligent Consumption continuous research service

• 5,333 respondents

• Attitudes, behaviour, installed base

• Australian Residential Energy Atlas– Devices and appliances by 65 Statistical

Regions– Energy consumption breakdown by

demographics

There are 8.5 million households in Australia

% Non-rental

% with PCs

% with Broadband

% with Digital TV

% with Pay TV

% with Home Theatre

% with Home Cinema (Custom Install)

% with Home Automation

% with REM

0 20 40 60 80 100

How closely do you look at your quarterly electricity bill?

Energy costs are rising. To what extent are the following factors are contributing to this?

Climate Change

Carbon Tax / Pricing

Federal Government Policies

State Government Policies

Energy Utility Investments

New Technologies

Energy Shortages

6.2

5.7

5.9

5.5

6.9

26.3

9.5

10.3

17.1

35.1

20.9

15.6

17.5

21.7

40.9

32.5

25.1

40.5

45.7

47.3

45.8

33.8

30.8

7.3

23.5

32.0

28.8

23.7

9.5

12.7

Don't know Not a factor at all Small factor Major factor The biggest factor

Smart Meters have a number of proposed advantages. How important is each of them to you?

Save money

Increased efficiency of electricity usage

Reduce electricity usage

Increased visibility of electricity consumption to the householder

Better control of usage of individual electrical devices

Increased visibility of power consumption to the electricity utility

13.7

13.7

13.5

13.5

13.9

13.6

14.2

19.4

20.2

22.6

24.3

32.0

39.4

47.5

44.9

43.0

43.9

33.8

30.5

16.5

18.4

16.8

13.4

8.012.5

Don't know Not at all important Some importance Very importantMost important factor

How many of each of the following electronic devices do you use in your household?

Mobile Phone

DVD Player

Computer Printer

Flat Panel TV

Laptop PC

Desktop PC

CRT (old style) TV

Set-top Box

Games Console

DVD Recorder

Home Theatre System

Digital Video Recorder

22.1

63.0

72.0

50.2

49.5

59.8

41.4

47.8

39.3

40.8

41.0

38.2

43.2

21.2

15.2

26.2

23.4

15.5

16.0

12.0

16.8

6.4

5.4

5.3

17.0

5.6

7.9

8.6

5.2

10.2 5.8

8.3

9.1

12.4

14.7

17.6

35.8

36.5

36.9

51.3

52.1

55.0

0 1 2 3 4 5+

Do you have any Home Automation products installed in your home?

Automatic / Remote Garage Door / Gate

Thermostatically Controlled Heating/Cooling

Security / Alarm System

Garden Watering System

Smart' Lighting (e.g. sensor-based automatic dimming)

Automatic Shutters / Blinds

Energy Management System

Home Auto Cabling (e.g. SmartWired, C-Bus)

62.5

67.2

69.5

77.1

82.2

94.7

96.4

96.5

35.9

30.4

27.2

21.8

16.9

1.6

2.4

3.3

1.1

0.9

No Basic system Integrated (part of Home Automation system)

The Coming Residential Energy Revolution

• You ain’t seen nothin’ yet – energy costs will double again in next 5 years

• The Smart Grid has made suppliers discover the customer

• The rise in ESCOs (Energy Service Companies) is threatening the traditional supplier model

• New monitoring and management devices will become commonplace– IHDs and HANs

The Perfect Storm

The Perfect Storm

• Energy costs are rising• Consumer concerns are growing• Smart Grids are coming• Bandwidth is increasing• Technology costs are dropping• ESCOs are appearing

Interconnectivity is happening!

The Interconnected Home

Graeme PhilipsonConnection Research

23 August 2011