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analysis - u.s. industrials, telecoms to face off in home automation - home security systems prices

by:Ansjer cctv     2020-01-21
analysis - u.s. industrials, telecoms to face off in home automation  -  home security systems prices
NEW YORK (Reuters)-
Ingersoll Rand Plc (IR. N)
Chief technology officer Paul Camuti works for one of the world's largest home lock manufacturers, but he doesn't know where his house keys are.
Because Camuti opened his front door with his smartphone.
Ingersoll Rand, which sells Schlage locks and Trane air conditioners, is one of the few in the United StatesS.
Is entering the manufacturer of so-
The so-called home automation, or connected home, market, provides high quality
Technology services that allow people to remotely control home access, heating and cooling, and energy use.
These manufacturers, including Honeywell International (HON. N)
United Technology Corporation (UTX. N)
Tyco International Limited.
N has set up a beachhead position in the field of home automation, which faces new competition from cable and telecom service providers who also see this service as a way to retain customers
Verizon Communications Corporation (VZ. N), AT&T Inc (T. N)
Comcast company
O and TWC, Time Warner Cable
There are either home automation products or they are coming soon.
"We see a huge shift from mechanical safety to electronic safety," Camuti said in a recent interview . ".
Ingersoll Rand estimates that the United StatesS.
Energy and security costs in the home automation market will reach $2.
It was $5 billion in five years, compared to about $1. 5 billion today
But according to Camuti, prices will have to fall in order to achieve this growth.
"If the minimum price you have to pay is $2,500, then the addressable market is small," says Camuti . ".
"The market would be much bigger if your entry level price was $250.
We focus on making sure the price is lowered.
Only about 3% of AmericansS.
Today, households have automated systems, but analysts estimate that number will double.
Digital interest rates for years to come.
The popularity of broadband Internet services and smartphones has paved the way for growth.
Obstacles from static-sluggish U. S.
The economy and housing markets are affected by concerns that hackers may disrupt security systems controlled by smartphones.
However, the biggest obstacle, analysts and executives say, is consumer awareness.
Using an app to turn on the AC is still a fairly new idea before you go home, and the technology seems complicated.
But this problem.
Convince consumers that the service will be easy to use
Wired and telecom companies have a lot of experience in solving this problem.
"Did you ever leak water when you were not at home?
You can close it remotely, "a New Orleans homeowner boasted in an AT&T Digital Life ad.
Ron Rothman, president of Honeywell Security Group, sees wired and Telecom as partners and competitors.
In fact, manufacturers need cables and telephone lines to connect their automation systems, while cable and telecom companies sell services based on equipment provided by industrial companies.
"I like the fact that they are in this industry," Rosman said . ".
"The factors that hinder the development of the industry, why the penetration rate is not high. . . is ease of use.
Industry experts say that although there are pilot projects in smaller markets, the United States is far ahead of other countries in adopting home automation technologies.
Tyco's ADT service will soon be split into a separate-
Alone is the leader in this increasingly crowded field.
Tyco's home automation service, known as Pulse, allows homeowners to monitor energy use when they leave home.
ADT has a 25% share in a fragmented home security market, earning five times the total revenue of the next two companies.
The drop in communication component costs makes it cheaper to embed electronic controls and sensors in a variety of older devices
Line electrical equipment, providing all data from energy use to wearand-
For example, it tears when the air conditioner needs a new filter.
Manufacturers plan to increase the proportion of subscription revenue-
Home automation services typically offer higher margins than equipment sales. That model -
Manufacturers of heavy equipment such as electric turbines and elevators have embraced --
Income can be made more predictable and resilient to cyclical economic fluctuations.
There are many home automation options: you can program the system to send text-
If the children are late for school, or the cat is out, or an older family member needs help, please message the homeowner.
They can be used to get the gardener into the hotel or to open the garage door for parcel delivery.
According to Bernstein Research, about 30 million North American households are monitored by home safety services, down from about 36 million before the recession. It is estimated that the value of the residential and small business market in 2011 was approximately $12 billion.
Many of them are just ordinary old-fashioned anti-theft alarms.
But they represent the basis for growth.
John Brady, president of TRG Associates and security adviser, said: "In the field of home automation, we are just touching the surface . ".
Less than a quarter of AmericaS.
Families currently have a security system, which is about half the penetration rate of cable TV.
Ultimately, this service will emerge as the US economy ages. S.
In addition to lighting and thermostat control, the population has increased to the area of medical services.
Medical service providers will be able to see when patients take medicine or need urgent care.
Home of Ingersoll Rand in Nexia
Tom Kerber, research director at Parks Associates, said that intelligence services is one of the first products to be listed, with sufficient capabilities and low enough prices to attract mainstream customers, A market research company specializing in new consumer technologies.
"I hope you can get out of it (small)
"In families with professional surveillance systems, there is a proportion of more complex things going into the middle," he said . ".
In the next few years, suppliers will decide which business model is best for them: selling equipment and installation, offering a subscription menu
Based on services or working with large retailers such as Cos Inc . (LOW. N)
In the coming months, the company will launch its own "Iris" home automation system.
Honeywell, which links thermostats and lighting equipment to weather and traffic information, sees home automation as a key strategic focus.
It is still too early, so the market size is estimated everywhere.
Rosman's starting point is to have 0. 15 billion families worldwide with Honeywell technology, most of which are easily upgraded to new features.
"We are a hardware manufacturer with software elements," says Rothman . ".
"We want to sell more software. . .
But we still have great advantages in hardware.
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